Market News

Cattle futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher following Friday’s On Feed numbers, waiting for this week’s direct cash business to develop.  October live cattle closed $.92 higher at $125.02 and December live cattle closed $1.20 higher at $129.52.  October feeder cattle closed $.20 higher at $155.62 and November feeder cattle closed $1.57 higher at $158.47. 

It was a typically quiet Monday for direct cash cattle trade activity.  Bids and asking prices are slow to surface.  Showlists this week appear to be slightly smaller in Nebraska/Colorado, and lower in Kansas and Texas.  Look for business to pickup at midweek or later. 

At midsession at the Oklahoma National Stockyards, compared to last week feeder steers were steady to $2 higher and feeder heifers were $2 to $4 higher.  Steer calves were $5 to $7 higher and heifer calves were $2 to $5 higher.  The USDA says demand was moderate to good.  Receipts were up on the week and the year.  Feeder supply included 48% steers and 48% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 602 to 647 pounds brought $150 to $163 and feeder steers 702 to 743 pounds brought $145 to $158.  Medium and Large 1 feeder heifers 553 to 599 pounds brought $139.50 to $147 and feeder heifers 652 to 690 pounds brought $141 to $151.50. 

Boxed beef closed firm to higher with good demand for moderate offerings.  Choice closed $1.22 higher at $283.04 and Select closed $.08 higher at $263.19.  The Choice/Select spread is $19.85. Estimated cattle slaughter is 122,000 head – up 2,000 on the week and up 6,000 on the year. 

Lean hog futures ended the day mostly lower, adjusting spreads.  Long-term demand uncertainty continues to pressure prices.  December lean hogs closed $.87 higher at $74.20 and February lean hogs closed $.15 higher at $76.77.

Cash hogs closed sharply lower – with fairly light negotiated purchases.  Processors continue to move their desired numbers at generally weaker prices.  Supplies of market-ready barrows and gilts are more than ample.  Demand for US pork on the global market and domestically has been strong, which is expected to continue.  And while there is some long-term demand concern and prices have been under pressure, they are higher than projections earlier this year. Barrows and gilts at the National Daily Direct closed $1.97 lower with a base range of $63 to $67 and a weighted average of $63.66; the Iowa/Minnesota had a weighted average of $64.89; the Western Corn Belt had a weighted average of $64.90.  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 $2 to $3 higher with good demand for light offerings at $49 to $59.  Barrows and gilts were steady with good demand for moderate offerings at $40 to $47.  Boars ranged from $20 to $25 and $9 to $15. 

Pork values closed sharply lower – down $3.69 at $94.58.  Hams closed nearly $19 lower.  Buts and picnics were also sharply lower.  Loins were lower.  Ribs and bellies were sharply higher. Estimated hog slaughter is 478,000 head – up 6,000 on the week and down 9,000 on the year.  Friday’s hog slaughter has been revised to 468,000 head.