Market News

Cattle futures mostly lower despite strong cash business

At the Chicago Mercantile Exchange, live and feeder cattle ended the day mostly lower on profit-taking despite much high cash and wholesale business.  June live cattle closed $0.35lower  at $164.50 and August live cattle closed $.72 lower at $163.25. May feeder cattle closed $.77 lower at $207.80 and August feeder cattle closed $.77 lower at $224.97.

Direct cash cattle trade activity picked up where it left off on Wednesday.  Dressed deals in Nebraska were at $290, $11 higher than the prior week’s weighted average basis in Nebraska.  Live sales in the North were at $182 to $185, $7 to $10 higher than the previous week’s business.  There was a small sale in Colorado reported at $182, $5 higher than the prior week’s business.  Asking prices are firm at $176-plus live in the South and $292-plus dressed in the North.  Those will likely be restated. So far this week, deals in the North have had a wide range, from $280 to $290 dressed steady to $11 above the prior week’s weighted average basis in Nebraska. Live deals in the South were marked at $175, $5 higher than the previous week’s business.   Look for more business to develop on Friday.

At the Huss Livestock market in Nebraska, steers 650 to 750 pounds were steady to $3 lower and steers over 750 pounds were $6 to $8 higher.  Heifers over 600 pounds were steady to $3 higher.  The USDA says demand was good from the buyers in the crowd.  Receipts were up on the week and down on the year.  Feeder supply included 69% steers and 71% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 703 to 726 pounds brought $228 to $233.75 and feeder steers 773 pounds, fancy, brought $233.25.  Medium and Large 1 feeder heifers 562 pounds, fancy, brought $238.50 and feeder heifers 616 to 625 pounds brought $222 to $225. 

Boxed beef closed higher on solid demand for moderate offerings.  Choice closed $1.94 higher at $300.42 and Select closed $1.57 higher at $283.38.  The Choice/Select spread was $17.04.  Estimated cattle slaughter was 125,000 head – up 3,000 on the week and even on the year.

Lean hog futures were lower, pressured by long-term demand uncertainty, follow-through selling, and a weaker export sales report.   May lean hogs closed $1.57 lower at $79.95 and June lean hogs closed $1.90 lower at $85.65.

Cash hogs closed mixed with a moderate negotiated run. Processors have been moving their needed numbers this week without having to bid up.  Supplies of market-ready hogs are ample, giving packers leverage.  The industry continues to monitor the global economic situation as there are concerns ongoing slowdowns could impact demand.  Export sales this week were solid, but down significantly from the previous week and the prior 4-week average. Barrows and gilts at the National Daily Direct closed $1.28 lower with a base range of $61 to $72 and a weighted average of $69.26; the Iowa/Minnesota closed $1.06 higher with a weighted average of $71.85; the Western Corn Belt closed $.31 lower with a weighted average of $70.67.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $48. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $33 to $45.  Barrows and gilts were steady with moderate demand for moderate offerings at $41 to $53.  Boars ranged from $15 to $25 and $8 to $15. 

Pork values closed higher – up $1.54 at $77.56.  Hams, bellies, and butts were sharply higher.  Picnics were firm.  Loins and ribs were lower.  Estimated hog slaughter was 484,000 head – up 3,000 on the week and 4,000 on the year.