Market News

Cattle futures start the week lower

At the Chicago Mercantile Exchange, live and feeder cattle started the week lower waiting for direct cash business to develop.  April live cattle closed $1.02 lower at $118.97 and June live cattle closed $.92 lower at $117.50.  March feeder cattle closed $1.47 lower at $137.20 and April feeder cattle closed $1.45 lower at $141.12. 

Direct cash cattle trade activity had a quiet to start the week.  Bids and asking prices have yet to develop.  Showlists are higher in Texas, but lower in Kansas, Colorado, and Nebraska.  Look for more business to develop in the latter half of the week. 

At Midsession at the Oklahoma National Stockyards, compared to last week’s light test, feeder steers are $3 to $4 lower and feeder heifers have not been very well tested in the early rounds with a few sales around $1 to $3 lower.  The USDA says early demand has been moderate to good and quality ranged from average to attractive.  Feeder supply included 60 percent steers and 63 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 601 to 643 pounds brought $140 to $163 and feeder steers 714 to 748 pounds brought $134 to $159.  Medium and Large 1 feeder heifers 602 to 641 pounds brought $124 to $137 and feeder heifers 656 to 698 pounds brought $124.50 to $129. 

Boxed beef closed lower on light demand for moderate offerings.  Choice closed down $1.50 at $239.03 and Select closed $2.69 lower at $227.64.  The Choice/Select spread is $11.39.  Estimated cattle slaughter is 120,000 head – even on the week and down 3,000 on the year. 

Lean hog futures were supported by higher cash and wholesale business during the session.  April lean hogs closed $.57 higher at $87.72 and May lean hogs closed $.70 higher at $89.57.

Cash hogs closed higher with a moderate negotiated run.  Packers have been aggressive in their procurement efforts as the industry expects solid demand for US pork to continue.  However, heavy supplies aren’t easily forgotten.  The availability of market-ready barrows and gilts is more than ample and daily slaughter continue at high levels.  That’s adding more pork to a heavily saturated market.  Should any disruption to demand occur, it would likely send prices tumbling.  Barrows and gilts at the National Daily Direct closed $.13 higher with a base range of $71 to $84 and a weighted average of $78.65; the Iowa/Minnesota closed $1.60 higher with a weighted average of $81.41; the Western Corn Belt closed $1.47 higher with a weighted average of $81.24.  The Eastern Corn Belt was not reported at midday due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 higher at $52. 

Pork values closed lower – down $1.47 at $92.37.  Hams were sharply lower. Ribs and loins were lower.  Bellies, butts, and picnics were higher to sharply higher.  Estimated hog slaughter is 499,000 head – up 10,000 on the week and up 8,000 on the year.