Market News

Cattle futures lower after long weekend

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower waiting for direct cash business to develop.  August lives closed $1.67 lower at $132.92 and October lives closed $1.50 lower at $138.47.  August feeder cattle closed $1.80 lower at $172.70 and September feeder cattle closed $1.55 lower at $176.10. 

It was a quiet Tuesday for direct cash cattle business.  The holiday-shortened week is off to a slow start.  One bid did surface in Nebraska at $145 live.  Asking prices in the South were at $140-plus live, the North was quiet.  Look for more business to develop over the balance of the week. 

In Nebraska last week, steers over 800 pounds were $1 to $2 higher and yearling heifers over 800 pounds were steady to $8 higher.  The USDA says buyers last week were fairly aggressive in their procurement efforts.  Hay is on its second cutting and many producers are reporting tonnage being off from 2021.  Receipts were up from the previous week and on the year.  Feeder supply included 57% steers and 76% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 701 to 742 pounds brought $212 to $217.50 and feeder steers 852 to 891 pounds brought $160.25 to $182.  Medium and Large 1 feeder heifers 802 to 844 pounds brought $148 to $168.75 and feeder heifers 863 to 897 pounds brought $146.25 to $162.25. 

Boxed beef closed mixed on light to moderate demand for fairly light offerings.  Choice closed $.84 higher at $264.66 and Select closed $.60 lower at $239.87.  The Choice/Select spread is $24.79. Estimated cattle slaughter 126,000 head – even on the week and up 6,000 on the year. 

Lean hog futures ended the day mixed, adjusting spreads.  August lean hogs closed $2.97 higher at $105.95 and October lean hogs closed $.47 higher at $89.40.

Cash hog closed sharply higher with a big negotiated run. Processors were more aggressive in their procurement efforts to start the short week and bid up to move their desired numbers.   Demand for US pork has been strong on the global market and domestically, helping provide some price support.  The industry also continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $6.24 higher with a base range of $110 to $125 and a weighted average of $120.46; the Iowa/Minnesota closed $2.53 higher with a weighted average of $123.41; the Western Corn Belt closed $2.51 higher with a weighted average of $123.37.  Prices at the Eastern Corn Belt were not reported due to confidentiality.   

Butcher hog prices at the Midwest cash markets are steady at $77. 

Pork values closed sharply higher – up $5.73 at $114.48.  Bellies jumped more than $20.  Butts were also sharply higher.  Hams, loins, and picnics were higher.  Ribs were sharply lower. Estimated hog slaughter is 458,000 head – up 8,000 on the week and down 6,000 on the year.