Market News

Cattle futures lower waiting for direct business to develop

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct cash business.  April live cattle closed $.87 lower at $163.60 and June lives closed $.90 lower at $159.80.  March feeder cattle closed $.50 lower at $187.20 and April feeders closed $.40 lower at $191.35. 

It was a quiet Tuesday for direct cash cattle business.  While asking prices did surface at $161 to $162 live in the South, the North was quiet.  And bids remained elusive.  Business will likely follow the trend of recent weeks, with the bulk of trade taking place sometime Thursday or Friday. 

At the Joplin Regional Stockyards in Missouri, feeder steers under 480 pounds were $5 to $11 higher with heavier weights steady to $3 higher.  Feeder heifers under 480 pounds were $10 to $14 higher and heavier weights were $2 to $6 higher.  The USDA says supply was heavy and demand was very good.  Receipts were up significantly on the week and the year.  Feeder supply included 65% steer and 58% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 606 to 646 pounds brought $193 to $210 and feeder steers 806 to 849 pounds brought $177 to $184.25.  Medium and Large 1 feeder heifers 550 to 591 pounds brought $183 to $198 and feeder heifers 601 to 645 pounds brought $174 to $188.    

Boxed beef closed firm to higher on solid demand for fairly light offerings.  Choice was $.16 higher at $266.72 and Select closed $3.61 higher at $257.33.  The Choice/Select spread was $9.39.    

Estimated cattle slaughter was 126,000, up 1,000 on the week and even on the year. 

Lean hog futures ended the day mostly higher on spread trade, the mixed cash business, and demand optimism.  April lean hogs closed $.55 higher at $83.27 and May lean hogs closed $.40 higher at $92.65. 

Cash hog closed higher with a moderate negotiated run.  The cash hog market overall has struggled to find long-term market support.  Packer margins have dropped, and processors aren’t consistently bidding up to move their desired numbers.  However, they were much more aggressive in their procurement efforts on Tuesday. Demand has been relatively strong on the global market and while that is expected to continue, there are concerns any hiccups to the global economy could weaken demand and ultimately put pressure on prices. Barrows and gilts at the National Daily Direct closed $1.73 higher with a base range of $64 to $77.50 and a weighted average of $74.07; the Iowa/Minnesota closed $1.44 higher with a weighted average of $76.07; the Western Corn Belt closed $1.33 higher with a weighted average of $75.96.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $66. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $30 to $42.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $64.  Boars ranged from $15 to $20 and $10 to $13. 

Pork values closed sharply lower – down $3.06 at $78.56.  All of the primals were lower, but bellies, hams, and ribs were sharply lower. Estimated hog slaughter was 479,000 head – down 4,000 on the week and up 10,000 on the year.  Monday’s hog slaughter has been revised to 480,000 head.