Market News

Cattle futures start the week mostly higher

At the Chicago Mercantile Exchange, live cattle were mostly higher and feeders were higher ahead of the week’s direct business.  June live cattle closed $1.20 higher at $132.77 and August live cattle closed $1.42 higher at $132.97. August feeder cattle closed $1.70 higher at $165.62 and September feeder closed $1.30 higher at $168.30. 

It was a relatively quiet Monday for direct cash cattle trade activity.  However, there were a few scattered deals reported at $138 live in Kansas.  Bids and asking prices have been slow to develop.  Showlists this week are higher across all major feeding areas.  More business is expected to develop in the coming days. 

At Midsession, at the Oklahoma National Stockyards, compared to the previous week feeder steers were $2 to $4 lower.  Feeder heifers were unevenly steady.  Steer and heifer calves were $2 to $4 lower. The USDA says demand was moderate.  There is some precipitation in the forecast and much cooler temperatures are expected to move into the area.  Receipts are up on the week and the year.  Feeder supply included 55% steers and 68% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 755 to 799 pounds brought $145 to $157 and feeder steers 801 to 833 pounds brought $144 to $153.  Medium and Large 1 feeder heifers 603 to 649 pounds brought $144 to $156 and feeder heifers 700 to 749 pounds brought $142.50 to $149. 

Boxed beef ended the day higher on solid demand for moderate offerings.  Choice closed $2.11 higher at $264.28 and Select closed $1.21 higher at $244.12.  The Choice/Select spread is $20.05.  Estimated cattle slaughter 125,000 – up 1,000 on the week and up 8,000 on the year.

Lean hog futures ended the day higher, supported by demand expectations and the higher midday pork.  June lean hogs closed $1.50 higher at $110.37 and July lean hogs closed $1.85 higher at $110.85. 

Cash hogs closed sharply lower with a light negotiated run.  It was a very sluggish Monday following last week’s aggressive procurement efforts as processors bid up to move their desired numbers.  The industry continues to monitor the availability of market-ready hogs.  Demand for US pork on the global market and domestically has been strong, helping provide price support.  But there are long-term concerns adding pressure to prices.  Barrows and gilts at the National Daily Direct closed $6.72 lower with a base range of $100 to $114 and a weighted average of $106.25; the Iowa/Minnesota closed $1.76 lower with a weighted average of $113.46; the Western Corn Belt closed $3 lower with a weighted average of $112.42.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were $2 lower with light demand for light offerings at $48 to $60.  Barrows and gilts were steady with light to moderate demand for light to moderate offerings at $65 to $74.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values closed about steady – down $.06 at $107.05.  Hams were sharply lower.  Ribs and picnics were lower.  Loins, butts, and bellies were higher to sharply higher. Estimated hog slaughter 473,000 – up 3,000 on the week and down 6,000 on the year.