Market News

Cattle futures sharply higher at midweek

At the Chicago Mercantile Exchange, live and feeder cattle ended the day sharply higher, supported by sharply higher boxed beef prices, strong cash trade, and feeders had additional support from the day’s lower move in corn.  June live cattle closed $3.57 higher at $117.12 and August live cattle closed $2.65 higher at $119.25.  August feeder cattle closed $3.17 higher at $152.32 and September feeders closed $2.82 higher at $154.80. 

There was a light to moderate direct cash cattle trade took place on Wednesday.  Live deals in the South were at $120, steady to $1 higher than last week’s weighted averages.  It was also an active day in Nebraska and Iowa with deals marked at $120 live and $190 to $191 dressed, $1 lower to fully steady with last week’s weighted average basis in Nebraska.  Most of the Nebraska cattle are marked to delayed delivery.  Asking prices were around $120 plus live in the South and $192 plus dressed in the North.  Wednesday’s Fed Cattle Exchange had an offering of 11,159 head, of which 1,255 head actually sold at $119 to $119.50. 

At the Kingsville Livestock Auction in Missouri, compared to last week steer calves and light yearlings were steady to $2 lower.  Heavier yearling steers had a firm undertone noted on the offerings available.  Heifers under 500 pounds were weaker on limited comparison and heifers over 500 pounds were steady to $2 higher.  The USDA says demand was moderate to good as supply was moderate.  There was a nice offering of calves with several unweaned and fleshing consignments.  Receipts were down on the week and the year.  Feeder supply included 90% steers and 49% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 652 to 688 pounds brought $142.25 to $153.25 and feeder steers 867 to 891 pounds brought $131.85 to $136.50.  Medium and Large 1 feeder heifers 500 to 542 pounds brought $143.75 to $155.75 and feeder heifers 619 to 643 pounds brought $134.10 to $140.50. 

Boxed beef closed sharply higher on strong demand for moderate offerings.  Choice is $5.60 higher at $340.16 and Select is $5.42 higher at $311.88.  The Choice/Select spread is $28.28. Estimated cattle slaughter is 105,000 head – down 15,000 on the week and down 11,000 on the year. While Wednesday’s kill is an improvement from Tuesday’s numbers it appears JBS has still not resumed full slaughter capacity.

Lean hog futures ended the day mixed on spread adjustments.  June lean hogs closed $.37 lower at $118.25 and July lean hogs closed $1.17 lower at $118.47. 

Cash hogs closed mixed with a big negotiated run.  Packers remain aggressive in their procurement efforts.  The industry expects the strong demand for US pork on the global market and domestically to continue, which has been providing a lot of price support.  However, should a disruption occur, it would likely send prices tumbling.  Hog weights dropped to 283.1 pounds this week, which’s 0.4 pounds below the previous week, but nearly 7 pounds lighter than year-ago levels. Barrows and gilts at the National Daily Direct closed $.27 lower with a base range of $99.84 to $115.50 and a weighted average of $108.65; the Iowa/Minnesota closed $.47 lower with a weighted average of $112.14; the Western Corn Belt closed $.14 higher with a weighted average of $111.92.  The Eastern Corn Belt is not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $75.  At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $38 to $52.  Barrow and gilt prices were steady with moderate to good demand for moderate offerings at $71 to $75.  Boars ranged from $45 to $50 and $12 to $18. 

Pork values closed sharply higher – up $2.47 at $129.59.  Butts and bellies were sharply higher.  Hams were higher.  Picnics were firm.  Loins and ribs were lower.  Estimated hog slaughter is 439,000 head – down 44,000 on the week and up 13,000 on the year.