Market News

Cattle futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were higher coming off last week’s stellar business and ahead of this week’s direct activity.  Feeders had additional support from the day’s lower move in corn.  August live cattle closed $.37 higher at $173.27 and October lives closed $.32 higher at $176.32.  August feeder cattle closed $.70 higher at $242.60 and September feeders closed $.62 higher at $245.62. 

It was a quiet Monday for direct cash cattle business.  Showlists this week appear to be larger in all major feeding areas, especially Kansas. Bids and asking prices will likely be slow to surface.  Look for significant trade volume to take place in the latter half of the week. 

At midsession, at the Oklahoma National Stockyards, feeder steers are $10 to $15 higher and feeder heifers are $8 to $10 higher.  Stocker steers and heifers are mostly steady.  Steer calves are $10 to $15 higher and heifer calves are steady to $5 higher.  The USDA says demand remains good for all classes.  Rain remains in the forecast and that’s helping to provide some improved producer confidence.  Quality has been mostly average to attractive.  Feeder supply included 50% heifers and 59% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 654 to 698 pounds brought $225 to $252 with a weighted average of $232.53 and feeder steers 761 to 795 pounds brought $218.75 to $238.25 and a weighted average of $227.91.  Medium and Large 1 feeder heifers 650 to 699 pounds brought $210 to $224 and a weighted average of $213.84 and feeder heifers 704 to 748 pounds brought $203 to $216 and a weighted average of $211.39.

Boxed beef closed sharply higher on solid demand for moderate offerings.  Choice was $4.26 higher at $314.19 and Select closed $5.80 higher at $296.73.  The Choice/Select spread is $17.46.   Estimated cattle slaughter was 121,000 head – down 2,000 on the year. 

Lean hog futures ended the day mixed, adjusting spreads.  July lean hogs closed $.50 lower at $84.15 and August lean hogs closed $.67 lower at $81.62. 

Cash hogs closed higher with a solid negotiated run. Processors had to get more aggressive in their procurement efforts and bid up to move needed numbers Monday afternoon.  The summer grilling season is in full swing, and the industry is optimistic it will continue to fuel demand and demand for U.S. pork has been relatively strong on the global market.  Both should be good news for pork prices. Barrows and gilts at the National Daily Direct closed $3.53 higher with a base range of $80 to $91 and a weighted average of $85.29; the Iowa/Minnesota had no comparison but a weighted average of $90.03; the Western Corn Belt closed $2.98 higher with a weighted average of $89.51.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $10 to $20.  Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed sharply higher – up $4.34 at $89.06.  Bellies were more than $24 higher.  Hams, butts, and ribs were also higher.  Loins and picnics were lower. Estimated hog slaughter was 467,000 head – down 6,000 on the year.  Friday’s hog slaughter was revised to 466,000 head.