Market News

Cattle futures start week sharply lower

Chicago Mercantile Exchange live cattle futures were sharply lower on profit taking, along with some indications that boxed beef and cash business have seen their seasonal highs. Most of the retail purchasing for Memorial Day has wrapped up and market ready numbers are expected to increase over the next couple of months. June was down $2.72 at $122.45 and August was $2.97 lower at $118.80.

Feeder cattle were sharply lower on the same factors as live cattle. May was $2.02 lower at $142.52 and August was down $2.55 at $149.27.

The big feature at the major direct cash cattle markets today was the distribution of this week’s new showlist. DTN says this week’s showlist looks mixed, larger in the South, especially Kansas, smaller in the North, but overall larger when compared to last week. This week’s asking prices aren’t defined yet, packer inquiry is non-existent, and widespread trade is expected to wait until after the Fed Cattle Exchange results on Wednesday. Formula totals last week were mixed, smaller in Kansas and Texas, larger in Nebraska. However, trade volume totals were down sharply in all major feeding areas.

Choice boxed beef closed $1.71 higher at $249.40 and Select was down $.01 at $225.50 on light to moderate demand and offerings. The estimated cattle slaughter Monday was 115,000 head, unchanged on the week and up 4,000 on the year.

At the Joplin Regional Stockyards, steer and heifer calves were $4 to $8 lower. Demand was called moderate for a heavy supply. 46% of the offering were steers and 42% were heifers, and out of the total feeder offering, 78% weighed less than 600 pounds. 400 to 500 pound feeder steers brought $174 to $178 and 500 to 600 pounders sold at $157 to $178. 300 to 400 pound feeder heifers ranged from $172 to $180 and 400 to 500 pounders were reported at $154 to $171.

Lean hog futures were mixed on spread trade, spillover pressure from cattle, and the mostly steady to firm cash business during the futures session. Position squaring relative to the cash index was also a feature. June was down $.70 at $77.25 and July was $.25 lower at $78.35.

Cash hogs were steady to modestly higher. Business is supported by improving wholesale demand and generally tighter market ready numbers. Margins moved lower last week, which could limit some of that buying interest.

Iowa/Southern Minnesota direct barrows and gilts closed $.60 higher at $66 to $71.51 with a weighted average of $69.94, the Western Cornbelt was up $.44 at $66 to $71.51 for an average of $69.81, and national direct business was $.19 higher at $66 to $71.51 with an average of $69.08. Butcher hogs at the Midwest cash markets were steady at $44 to $50. Missouri direct butchers were steady at $59 to $62 with supply and demand both called light to moderate. Sows were steady to $3 lower at $36 to $50. Illinois direct sows were steady at $40 to $52 on moderate demand for heavy offerings. Barrows and gilts were firm at $45 to $52 on good demand for moderate offerings. Boars ranged from $7 to $27.

Pork closed $.68 higher at $83.97. Hams were lower, all other primals were higher. The estimated hog slaughter was 437,000 head, up 7,000 on the week and 5,000 on the year.