Market News

Cattle futures pressured by supply chain concerns

At the Chicago Mercantile Exchange, both live and feeder cattle futures closed limit down on follow-through selling, expected weaker cash trade, and concerns that the supply chain could see disruptions as COVID-19 continues to impact the labor force at processing plants across the US.  April live cattle closed $3 lower at $91 and June live cattle closed $3 lower at $81.37.  April feeder cattle closed $4.50 lower at $115.02 and May feeder cattle closed $4.50 lower at $114.45. 

Direct cash cattle trade activity is quiet.  Bids and asking prices have yet to surface.  Showlists this week appear to be mixed, higher in Nebraska/Colorado, somewhat larger in Kansas, but lower in Texas.  Significant trade volume will likely be delayed until the last half of the week. 

At the Oklahoma National Stockyards, compared to last week feeder steers that were front-end/reputation cattle sold steady to $2 lower, the remainder of the feeder cattle were $3 to $5 lower.  All classes of steer and heifer calves were not well tested for an accurate trend. Demand was moderate to light on the light run of cattle.  Receipts were down on the week and the year.  Feeder supply included 55 percent steers and 83 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 661 to 684 pounds brought $127 to $144 and feeder steers 801 to 848 pounds brought $104 to $113.25.  Medium and Large 1 feeder heifers 668 to 692 pounds brought $102 to $114.75 and feeder heifers 708 to 749 pounds brought $90 to $109. 

Boxed beef closed higher on good demand and moderate to heavy offerings.  Choice closed $1.93 higher at $225.86 and Select closed $3.07 higher at $211.40.  The Choice/Select spread is $14.46.   Estimated cattle slaughter is 92,000 head – down 18,000 on the week and down 30,000 on the year. 

Lean hog futures ended the day sharply lower on follow-through selling and concerns that processing facilities will be able to keep up the number of market-ready hogs as plants continue to shutter as they battle COVID-19. April lean hogs closed $2.10 higher at $44.90 and May lean hogs closed $3.75 lower at $39.67.

Cash hogs ended the day lower with moderate negotiated numbers. Supplies of market-ready hogs are heavy and with processing plants shuttering due to COVID-19 outbreaks, it is putting more pressure on prices.  The domestic demand picture has slowed somewhat and that’s also negative to the price picture.  Barrows and gilts at the National Daily Direct closed $1.78 lower with a range of $35 to $40 for a weighted average of $37.80; the Iowa/Minnesota closed $1.94 lower for a weighted average of $36.95; the Western Corn Belt closed $2.16 lower for a weighted average of $36.95.  The Western Corn Belt was not reported due to confidentiality. 

There was no comparison available in Dorchester, Wisconsin, but butcher hogs brought $27.

At Illinois, slaughter sow prices were $4 to $6 lower, with light to moderate demand for heavy offerings.  Sows ranged from $20 to $32.  Barrow and gilt prices were $1 To $2 lower, with light demand for moderate to heavy offerings at $16 to $22.  Boars range from $5 to $15. 

Pork values ended the day steady – up $.02 at $52.87.  Bellies, butts, and loins were higher.  Picnics, hams, and ribs were lower.     Estimated hog slaughter is 308,000 head, down 169,000 on the week and down 126,000 on the year.