Market News

Cattle futures lower on higher corn

Chicago Mercantile Exchange live and feeder cattle futures were lower, watching corn and the development of the week’s direct business. October live was down $.22 at $121.77 and December was $.45 lower at $127.05. September feeders were down $.12 at $154.27 and October was $1.50 lower at $154.62.

Direct cash cattle trade was light to moderate on Wednesday with Southern live deals mostly coming in at $124, steady with last week’s weighted averages. Northern dressed deals were mostly around $196, steady with last week’s weighted average. Asking prices for the day were at $125 live in the South and $198 plus dressed in the North.  Wednesday’s Fed Cattle Exchange had an offering of 3,350 head with 611 head sold at $124 in Texas and $122.25 in Kansas.

Boxed beef cutout values closed sharply lower with choice $4.23 lower at $297.33 and select $2.57 lower at $271.78. The choice/select spread is $25.55.

At the Interstate Regional Stockyards in Missouri, compared to last week feeder steers under 650 pounds were steady to $5 lower and steers over 650 pounds were steady to firm.  Feeder heifers under 440 pounds were $2 to $6 higher and heifers over 550 pounds were mostly steady.  The USDA says demand was moderate to good with a moderate supply.  Receipts were down on the week and about steady with the year.  Feeder supply included 52% steers and 50% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 634 to 640 pounds brought $136 to $145.50 and feeder steers 755 to 770 pounds brought $146.50 to $149.75.  Medium and Large 1 feeder heifers 467 to 489 pounds brought $154 to $163.50 and feeder heifers 652 to 689 pounds brought $143 to $146.50. Estimated cattle slaughter is 116,000 head. That’s down 6,000 on the week and on the year.

Lean hog futures ended a choppy day mostly lower on spread trade, profit taking, and the steady to lower cash during the session. October was down $.87 at $90.80 and December was up $.02 at $83.60, the only contract to finish in the black.

Cash hogs closed lower again on moderate purchases. Processors continue to move their desired numbers with lower prices.  They’re also monitoring the availability of market-ready barrows and gilts.  Demand for US pork on the global market and domestically has been strong, but there are long-term concerns and that has put some additional pressure on prices. 

Barrows and gilts at the National Daily Direct closed 31 cents lower with a weighted average of $74.51; the Iowa/Minnesota had a weighted average of $75.20; the Western Cornbelt had a weighted average of $74.85. The Eastern Cornbelt was not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets were steady at $60. 

Pork values closed higher, up $6.99 at $115.11. Hams closed more than $30 higher. Butts and bellies closed higher. Loins, picnics and ribs closed lower.

Estimated hog slaughter is 475,000 head, that’s up 4,000 on the week and 8,000 on the year.

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