Market News

Cattle futures lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were lower, watching the development of direct business.  August live cattle closed $1.32 lower at $134.92 and October live cattle closed $1.22 lower at $141.07.  August feeder cattle closed $2.15 lower at $173.15 and September feeder cattle closed $1.97 lower at $175.30. 

It was a fairly active day for direct cash cattle business. Live deals in the South were at $138, about $2 below last week’s weighted averages.  Bids surfaced at $145 live and $230 to $237 dressed in Nebraska.  Asking prices were at $140 to $142 live in the South and $240 plus dressed in the North.  More business is expected to develop over the balance of the week. 

At the McAlester Union Livestock Auction in Oklahoma, compared to last week steer calves under 400 pounds were $10 higher and calves over 400 pounds were $1 to $3 lower.  Heifer calves were $5 to $8 higher.  The USDA says quality was average through attractive and demand was good.  Receipts were up on the week and the year.  Feeder supply included 42% steers and 16% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 450 to 494 pounds brought $177 to $191 and feeder steers 553 to 598 pounds brought $170 to $184.  Medium and Large 1 feeder heifers 450 to 498 pounds brought $162 to $175 and feeder heifers 500 to 549 pounds brought $159 to $174. 

Boxed beef closed lower on light demand for solid offerings.  Choice down $.99 at $266.57 and Select closed $.71 lower at $245.99.  The Choice/Select spread is $20.58. Estimated cattle slaughter is 126,000 head – even on the week and up 10,000 on the year. 

Lean hog futures ended the day mostly lower on demand uncertainties.  July lean hogs closed $.87 lower at $111.85 and August lean hogs closed $1.47 lower at $108.32. 

Cash hog closed sharply higher with a big negotiated run.  Processors were more aggressive in their procurement efforts and bid up to move their desired numbers on Wednesday.  Demand for US pork has been strong, helping provide price support.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $3.46 higher with a base range of $110 to $125.75 and a weighted average of $122.45; the Iowa/Minnesota closed $1.61 higher with a weighted average of $124.35; the Western Corn Belt closed $1.40 higher with a weighted average of $124.22.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $76. At Illinois, slaughter sow prices were $1 lower with light demand for light offerings at $41 to $53.  Barrows and gilts were steady with light demand for light offerings at $71 to $80.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values closed higher – up $.29 at $111.15.  Bellies, butts, picnics, and hams were all higher.  Loins and ribs were lower. Estimated hog slaughter is 469,000 head – down 3,000 on the week and down 4,000 on the year.