Market News

Cattle futures pressured by lower cash business

At the Chicago Mercantile Exchange, live cattle were mostly lower, and feeders were lower, pressured by the week’s lower cash trade.  June live cattle closed $.17 lower at $133 and August live cattle closed $.42 lower at $133.47.  August feeder cattle closed $.65 lower at $166.77 and September feeder cattle closed $.82 lower at $169.22. 

It was an active day on Tuesday for direct cash cattle trade. Live deals in the South were at $138, $2 lower than last week’s weighted averages. A few deals were reported in Nebraska at $227 dressed, about $3 below last week’s weighted average basis. Asking prices for what’s left on showlists are at $142 live in the South and $232 dressed in the North.  Look for at least a little more trade to develop over the balance of the week.

At the Callaway Livestock Center in Missouri, compared to last week steer calves 400 to 500 pounds were $4 to $8 higher with spots of $10 higher.  Steers 500 to 600 pounds were $3 to $5 higher, steers 600 to 650 pounds were $5 to $8 higher.  Feeder heifers 400 to 450 pounds were steady to $5 higher, heifers 450 to 500 pounds were steady to firm, and heifer 500 to 600 pounds were unevenly steady.  The USDA says demand was moderate to very good with the best demand on steer calves 400 to 650 pounds and two pot-loads of 5-weight heifers.  Receipts were up slightly on the week and down modestly on the year.  Feeder supply included 52% steers and 20% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 455 to 494 pounds brought $203 to $216 and feeder steers 511 to 540 pounds brought $194 to $205.50.  Medium and Large 1 feeder heifers 451 to 491 pounds brought $166 to $177.50 and feeder heifers 504 pounds brought $183. 

Boxed beef closed higher on solid demand for moderate offerings.  Choice closed $.17 higher at $260.48 and Select closed $2.52 higher at $248.19.  The Choice/Select spread is $12.29. Estimated cattle slaughter 125,000 head – even on the week and up 5,000 on the year. 

Lean hog futures ended the day mixed, adjusting spreads.  July lean hogs closed $2.95 higher at $107.75 and August lean hogs closed $2.45 higher at $107.25. 

Cash hogs closed sharply higher with a huge negotiated run.  Processors were very aggressive in their procurement efforts on Tuesday and bid up to move big numbers.  All eyes are on the availability of market-ready hogs.  Demand for US pork has been strong on the global market and that is helping provide some price support.  But there are long-term demand concerns. Barrows and gilts at the National Daily Direct closed $9.74 higher with a base range of $98 to $115 and a weighted average of $111.38; the Iowa/Minnesota had a weighted average of $113.10; the Western Corn Belt closed $7.88 higher with a weighted average of $113.03; the Eastern Corn Belt had a weighted average of $105.93.

Butcher hog prices at the Midwest cash markets were $2 lower at $68.  At Illinois, slaughter sow prices were steady with moderate to light demand for moderate to heavy offerings at $64 to $75.  Barrows and gilts were steady with light to moderate demand for light to moderate offerings at $65 to $74.  Boars ranged from $40 to $50 and $5 to $15. 

Pork values closed higher, up $.56 at $102.11.  Hams and bellies were both sharply higher.  Ribs, picnics, butts, and loins were lower to sharply lower. Estimated hog slaughter is 477,000 head – up 3,000 on the week and up 10,000 on the year.  Monday’s hog slaughter has been revised to 470,000 head.