Market News

Cattle futures mixed ahead of the week’s direct business

Chicago Mercantile Exchange live cattle futures were mostly lower and feeders were higher, getting ready for the week’s widespread direct business. Support in feeders came from the lower move in corn. April live was down $.12 at $165.97 and June was $.45 lower at $160.55. April feeders were up $.07 at $198.67 and May was $.95 higher at $204.20.

Tuesday was another relatively quiet day for direct cash cattle business. Packer inquiry was practically non existent this afternoon with just a few early asking prices noted around $167-plus in the South, but not established in the North. Bids remain elusive, and significant trade volume will likely be delayed until later this week.

At the Callaway Livestock Center in Missouri, steer calves under 450 pounds traded with a sharply higher undertone on a light test, with 450 to 550 pounds and 600 to 650 pound steer calves selling fully steady to firm, 550 to 600 pounds sold $5 to $8 higher, over 700 pounds sold with a higher undertone. Feeder heifers weighing 400 to 450 pounds sold mostly $8 to $10 higher, with 450 to 600 pounds selling steady to firm and over 600 pounds were not tested.  Demand was good to very good on a light to moderate offering with an attractive offering of steers and heifer calves weighing 400-650 pounds all selling on a very active market.  The USDA says feeder supply included 55% steers and 40% of the offering was over 600 pounds.

Boxed beef values were mixed on Tuesday. Choice was $2.27 lower at $287.93 and Select closed $1.02 higher at $277.49. The Choice/Select spread was $10.44.

Estimated cattle slaughter was 127,000 head – up 1,000 on the week and up 3,000 on the year.

Lean hog futures were mostly lower on spread trade and long-term demand uncertainties. The steady to lower cash during the session was also a factor. April was up $1.32 at $84.80 and May was down $.10 at $92.95.

Cash hogs were steady to higher with a big negotiated run for the major direct markets. Buyers raised bids after a slow start to move more of the needed near-term numbers and keep chain speed at an relatively high levels. Still, the inconsistency in the wholesale market and some uncertainties about sustained export demand could keep a cap on gains and buyers might start to pull those bids back later this week.

Barrows and gilts at the National Daily Direct closed $.56 higher with a base range of $71 to $80 and weighted average of $78.47; the Iowa/Minnesota closed $.39 higher with a weighted average of $78.48; the Western Corn Belt was up $.33 with a weighted average of $78.42; and the Eastern Corn Belt had no comparison but a weighted average of $78.89.

Midwest butcher hog markets are steady at $60. At Illinois, slaughter sow prices were $2 higher with moderate demand for moderate to heavy offerings at $52 to $65. Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62. Boars were $15 to $25 and $8 to $15.

Pork values closed lower – down $.31 at $87.02. Bellies, ribs, butts, and loins were lower. Hams and picnics were higher.

Estimated hog slaughter was 485,000 – unchanged on the week and up 5,000 on the year. Monday’s hog slaughter was revised to 461,000 head.