Market News

Cattle futures start week on strong note

Chicago Mercantile Exchange live cattle futures were sharply higher, shrugging off last week’s bearish cash business and cattle on feed numbers in pretty short order. The market’s expecting generally good 4th of July beef demand. June was up $2.27 at $121.47 and August was $3.00 higher at $118.27.

Feeder cattle futures were sharply higher, mostly up the $4.50 daily trading limit, also in pretty light trade volume, shrugging off recent bearish fundamental inputs. August was $4.50 higher at $149.45 and September was up $4.50 at $148.90.

Direct cattle markets were quiet. The big feature was the distribution of this week’s direct cash cattle showlist. Overall, the numbers appear to be below last week, except for Colorado, which looks about steady. Asking prices are not well defined and widespread business isn’t expected until the second half of the week. Last week, formula totals were mixed, up in Kansas and Nebraska, down in Texas. Trade volume totals were also mixed, larger in Kansas and Texas, smaller in Nebraska.

At the Oklahoma City feeder cattle auction Monday, feeder steers and heifers were mostly steady to $3 lower. Steer calves were unevenly steady and heifer calves were untested. Demand was moderate to good with average to good quality. 57% of the run was steers and 71% of the total offering weighed more than 600 pounds. 600 to 700 pound feeder steers sold at $159.25 to $169.50 and 700 to 800 pounders brought $147 to $155. 600 to 700 pound feeder heifers were reported at $141.25 to $148 and 700 to 800 pound heifers ranged from $124.50 to $134.

Boxed beef closed mixed on light to moderate demand and moderate offerings. Choice was down $1.18 at $238.57 and Select was up $.94 at $217.66. The estimated slaughter of 117,000 head was up 3,000 on the week and 6,000 on the year.

Lean hog futures were firm to sharply higher, with July in the lead on solid near term demand expectations. Longer term, there are a lot of demand uncertainties. Market ready numbers are expected to start to expand soon and even if demand is solid, there’s a lot of pork available right now. July was $1.72 higher at $87.02 and August was up $.02 at $78.67.

Cash hogs were mostly steady to firm, depending on packer demand. The trade’s expected to follow up on last week’s relatively small kill, focused on the availability of market ready numbers and pork demand. The major direct markets started lower, but closed firm, not uncommon in recent weeks.

Iowa/Southern Minnesota direct barrows and gilts closed $.16 higher at $82 to $87.50 with a weighted average of $86.50, the Western Cornbelt was up $.24 at $82 to $87.50 for an average of $86.51, and national direct business was $.02 higher at $82 to $87.50 with an average of $85.82. Butcher hogs at the Midwest cash markets were steady at $55 to $62. Missouri direct butchers were steady at $78 to $81 on light to moderate supply and demand. Sows were $2 to $9 higher at $42 to $50. Illinois direct sows were $1 higher at $45 to $58 with good demand for moderate offerings. Illinois direct barrows and gilts were firm at $59 to $62 with good demand for moderate offerings. Boars ranged from $10 to $40.

The pork carcass cutout value closed $.20 higher at $101.35. Picnics were weak, hams dropped $5.60, but loins were unchanged while butts, hams, and bellies were higher. The estimated hog slaughter was 435,000 head, up 11,000 on the week and 9,000 on the year.