Market News

Cattle futures higher on oversold signals

At the Chicago Mercantile Exchange, live cattle were sharply higher on oversold signals and sharply higher boxed beef during the session.  Feeder cattle were higher on the same factors with additional support in the day’s lower move in corn.  April live cattle closed $2.70 higher at $93.70 and June live cattle closed $2.42 higher at $83.80.  April feeder cattle closed $1.37 higher at $116.50 and May feeder cattle closed $.40 higher at $114.85. 

Direct cash cattle trade activity remains quiet.  There have been a few asking prices noted at $108 live in parts of the South, nothing has surfaced for dressed business.  And bids are slow to develop.  It’s likely significant trade volume will be delayed until the latter half of the week. 

At the Callaway Livestock Center in Missouri, compared to last week’s sharply lower market, feeder steers 400 to 600 pounds were $10 to $15 higher, 600 to 750 pounds were $3 to $8 higher with a good offering of 8-weight yearling steers selling with a sharply higher undertone.  Feeder heifers 400 to 600 pounds were $5 to $10 higher.  The USDA says demand was moderate to good with a moderate supply and all sold on an active market.  Receipts were up on the week and down slightly on the year.  Feeder supply included 63 percent steers and 59 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 552 to 592 pounds brought $147 to $159.25 and feeder steers 814 to 846 pounds brought $117 to $122.75.  Medium and Large 1 feeder heifers 503 to 547 pounds brought $132.25 to $142 and feeder heifers 761 brought $106.25. 

Boxed beef closed higher to sharply higher on moderate to good demand and moderate to heavy offerings.  Select and Choice rib and loin cuts were steady to firm while round cuts were firm to higher.  Choice chuck cuts were lower while Select closed higher.  Choice closed $.81 higher at $226.67 and Select closed $4.37 higher at $215.77.  The Choice/Select spread closed at $10.90.  Estimated cattle slaughter is 99,000 head – down 7,000 on the week and down 24,000 on the year. 

Lean hog futures were mixed on consolidation and supply concerns.  April lean hogs closed $.75 higher at $45.65 and May lean hogs closed $1.67 lower at $38. 

Cash hogs closed lower with moderate negotiated numbers.  Heavy supplies of market-ready hogs combined with the restricted slaughter capacity are putting more pressure on prices.  There are labor concerns as the plants that haven’t shuttered because of the coronavirus outbreak are seeing a rise in absenteeism because of the virus.  Domestic demand has also slowed following the initial wave of panic buying at the start of COVID-19.  Global protein supplies are still short, and the US remains in a decent position to meet the world’s pork and protein needs.  Barrows and gilts at the National Daily Direct closed $1.95 lower with a base range of $32 to $38 for a weighted average of $35.60; the Iowa/Minnesota closed $1.84 lower at $35.39; the Western Corn Belt closed $1.87 lower at $34.75.  The Eastern Corn Belt was not reported due to confidentiality. 

At Illinois, slaughter sow prices are $2 to $3 lower with moderate to good demand for moderate to heavy offerings at $18 to $30.  Barrow and gilt prices were weak with very light demand for light offerings at $16 to $22.  Boars brought anywhere from $2 to $10.

Pork values closed firm – up $.20 at $53.07.  Bellies, ribs, and picnics were all higher.  Hams were firm.  Butts were weak.  Loins closed sharply lower.

Estimated hog slaughter is 450,000 head, down 32,000 on the week and down 25,000 on the year.  Monday’s hog slaughter has been revised to 300,000 head.