Market News

Cattle futures higher on the lower move in corn

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, with feeders leading the way, on the day’s lower move in corn.  October live cattle closed $.92 higher at $143.82 and December live cattle closed $.87 higher at $149.80.  September feeder cattle closed $2.25 higher at $182.17 and October feeder cattle closed $2.20 higher at $183.27. 

It was a very quiet Tuesday for direct cash cattle business.  A few early asking prices are around $144 live in the South, while the North remained quiet.  Bids were few and far between.  Significant trade volume will be delayed until midweek or later. 

At the Tri-State Livestock Auction in Nebraska, compared to the previous week, steers were steady to $6 higher.  Heifers were $10 to $20 lower, except 500-pound heifers that came in at $7 higher.  The USDA says demand was good.  Receipts were upon the week and the year.  Feeder supply included 59% steers and 15% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 461 to 496 pounds brought $224 to $244 and feeder steers 501 to 549 pounds brought $202 to $220.50.  Medium and Large 1 feeder heifers 405 to 446 pounds brought $195 to $218 and feeder heifers 460 to 45 pounds brought $195 to $216. 

Boxed beef closed sharply lower with light demand for solid offerings.  Choice closed $3.25 lower at $259.79 and Select closed $3.07 lower at $239.68.  The Choice/Select spread is $20.11.  Estimated cattle slaughter 126,000 head – even on the week and up 6,000 on the year.

Lean hog futures ended the day higher, supported by stronger cash and wholesale business during the session.  October lean hogs closed $1.35 higher at $93.60 and December lean hogs closed $.90 higher at $85.50. 

Cash hog closed mixed with a moderate negotiated run.  Processors started a little more aggressive in their procurement efforts to move their desired numbers, but backed off in the afternoon.  Demand for US pork on the global market and domestically have been strong, helping provide price support.  However, long-term demand concerns do creep into the market and put pressure on prices.  The industry also continues to monitor the availability of market-ready hogs.  Barrows and gilts at the National Daily Direct closed $2.52 lower with a base range of $100 to $120 and a weighted average of $106.82; the Iowa/Minnesota closed $.84 higher with a weighted average of $112.39; the Western Corn Belt closed $2.51 lower with a weighted average of $108.99.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $70.  At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate offerings at $65 to $77.  Barrows and gilts were $2 lower with moderate demand for moderate offerings at $75 to $84.  Boars ranged from $75 to $84. 

Pork values closed lower – down $.41 at $102.16.  Bellies, butts, loins, picnics, and ribs were all lower.  Hams closed higher. 

Estimated hog slaughter is 480,000 head – even on the week and up 3,000 on the year.