Market News

Cattle futures lower head of Friday’s report

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of Friday’s On Feed numbers from the USDA and waiting for cash business to develop.  October live cattle closed $1.80 lower at $184.97 and December live cattle closed $2.02 lower at $189.50.  October feeder cattle closed $2.80 lower at $257.77 and November feeders closed $2.87 lower at $262.70. 

There was a solid round direct cash cattle business that developed on Thursday.  Live deals in the South were at $183 and dressed business in the North was at $292, both are generally steady with the previous week’s weighted averages.  There will likely be just some cleanup trade that takes place on Friday.

At the Bloomfield Livestock Feeder Cattle Auction in Iowa, at the annual off-grass sale steer and heifers sold with a higher undertone.  The USDA says demand was good and supply was moderate and included several load lots of reputation yearling cattle.  Receipts were up on the week and down on the year.  Feeder supply included 71% steers and 88% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 810 to 841 pounds brought $246.25 to $265.50 and feeder steers 912 to 943 pounds brought $230 to $249.75.  Medium and Large 1 feeder heifers 574 to 583 pounds brought $250 to $272 and feeder heifers 704 to 748 pounds brough $241.50 to $268. 

Boxed beef closed higher with strong demand for solid offerings.  Choice was $.67 higher at $301.93 and Select closed $.32 higher at $279.00.  The Choice/Select spread is $22.93.  Estimated cattle slaughter was 124,000 head – even on the week and down 4,000 on the year. 

Lean hog futures ended the day lower with concerns about domestic demand.  October lean hogs closed $2.82 lower at $82.95 and December lean hogs closed $3.75 lower at $74.47. 

Cash hogs closed lower with a very light negotiated run.  For much of the week, processors have been more aggressive in their procurement efforts and have bid up to move needed numbers.  They likely have what’s needed in hand and business the rest of the week could be minimal.  Pork export sales were up significantly on the week, providing some assurance that demand for US pork on the global market remains strong, but concerns about long-term domestic demand linger.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct were $.71 lower with a base range of $76 to $80 and a weighted average of $78.09.  Prices at the regional direct markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $58 in Dorchester, Wisconsin and lower in Red Oak, Iowa at $48. At Illinois, slaughter sow prices are $2 lower with moderate demand for moderate offerings at $29 to $40. Barrows and gilts are $2 lower with moderate demand for moderate offerings at $39 to $49. Boars ranged from $20 to $25 and $10 to$12. 

Pork values closed weak – down $.47 at $98.75.  Butts, hams, bellies, and picnics were lower.  Loins and ribs were higher. Estimated hog slaughter is 484,000 head – even on the week and up 2,000 on the year.