Market News

Cattle futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, waiting for the week’s direct business to develop with additional support from stronger boxed beef during the session. 

It was a quiet Monday for direct cash cattle trade activity.  Bids and asking prices have yet to surface.  Showlists this week are mixed, lower in Kansas, somewhat higher in Texas and Nebraska and Colorado.  Look for more business to develop in the last half of the week. 

At midsession, at the Oklahoma National Stockyards, compared to last week, feeder steers and heifers were mostly steady to $2 lower.  The decline was on heavier weights.  Stocker cattle are $2 to $6 higher.  The USDA says demand was very good, especially for cattle in suitable condition to return to grass.  There were also several light to mid-weight flesh cattle on offer.  Feeder supply included 54% steers and 56% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 654 to 681 pounds brought $160 to $183 and feeder steers 862 to 882 pounds brought $143.50 to $153.  Medium and Large 1 feeder heifers 450 to 485 pounds brought $177 to $186.50 and feeder heifers 608 to 647 pounds brought $154 to $163.

Boxed beef closed mixed with light to moderate demand for light offerings.  Choice closed $.56 lower at $273.96 and Select closed $.92 higher at $268.75.  The Choice/Select spread is $5.21. Estimated cattle slaughter is 121,000 head – even on the week and up 44,000 on the year. 

Lean hog futures ended the day mostly higher, supported by sharply higher pork values during the session. 

Cash hogs closed higher with a moderate negotiated run. Demand for US pork on the global market and domestically has been strong, and while that is expected to continue, there are some long-term demand concerns, which does add some pressure to prices.  Packers were a little more aggressive in their procurement efforts to kick off the week.  And the industry continues to monitor the availability of market-ready hogs, while keeping a close eye on the demand situation. Barrows and gilts at the National Daily Direct closed $4.15 higher with a base range of $76 to $95 and a weighted average of $86.51; the Iowa/Minnesota closed $1.36 higher with a weighted average of $91.74; the Western Corn Belt closed $1.39 higher with a weighted average of $91.71.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $3 higher than last week at $60. At Illinois, slaughter sow prices were $3 higher with moderate demand for light to moderate offerings at $50 to $61.  Barrows and gilts were steady with moderate demand for light to moderate offerings at $52 to $58.  Boars ranged from $25 to $30 and $13 to $17. 

Pork values closed lower – down $1.98 at $107.98.  Hams and butts were both sharply lower.  Loins were firm.  Picnics, ribs, and bellies were higher to sharply higher. Estimated hog slaughter is 470,000 head – down 11,000 on the week and up 65,000 on the year.