Market News

Cattle futures start the week higher

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher watching direct business and corn.  August live cattle closed $.10 higher at $133.47 and October live cattle closed $.37 higher at $140.12.  August feeder closed $1.62 higher at $174.12 and September feeders closed $1.72 higher at $176.80. 

It was a quiet start to the week for direct cash cattle business.  Bids and asking prices were slow to surface.  Showlists this week are mixed – higher in Nebraska/Colorado, but lower in Kansas and Texas.  Look for business to pick up as the week progresses. 

At midsession, at the Oklahoma National Stockyards, compared to last week feeder steers over 800 pounds were $4 to $8 higher and steers under 800 pounds were steady to $2 lower.  Feeder heifers were lightly tested and $1 to $4 lower.  Steer and heifer calves were $2 to $4 higher.  The USDA says demand was good for calves.  Receipts were up on the week and down on the year.  Feeder supply included 54% steers and 60% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 759 to 792 pounds brought $162 to $169 and feeder steers 871 pounds brought $154 to $167.  Medium and Large 1 feeder heifers 552 to 595 brought $155 to $172 and 703 to 744 pounds brought $141 to $157. 

Boxed beef closed sharply higher and higher on solid demand for light offerings.  Choice closed $3.70 higher at $268.57 and Select closed $.22 higher at $245.24.  The Choice/Select spread is $23.44. Estimated cattle slaughter is 125,000 head – down 1,000 on the week and up 6,000 on the year. 

Lean hog futures ended the day lower, pressured by cash and wholesale business.  July lean hogs closed $.75 lower at $110.17 and August lean hogs closed $1.90 lower at $104.87. 

Cash hogs closed sharply lower with a light negotiated run.  Processors weren’t aggressive in their procurement efforts and it is reflected in the morning’s business.  Demand for US pork on the global market has been strong, but there are long-term demand concerns, which continue to creep up in business.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $5.10 lower with a base range of $112 to $123 and a weighted average of $115.13; the Iowa/Minnesota closed $6.11 lower at $118.13; the Western Corn Belt closed $5.31 lower with a weighted average of $118.93.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $77. At Illinois, slaughter sow prices were $1 higher with moderate demand for moderate offerings at $40 to $52.  Barrows and gilts were steady with moderate demand for moderate offerings at $71 to $80.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values closed sharply lower – down $3.17 at $109.03.  Bellies dropped more than $14.  Ribs and hams were lower.  Loins, picnics, and butts were about steady to higher. Estimated hog slaughter is 466,000 head – up 17,000 on the week and up 11,000 on the year.