Market News

Cattle futures supported by recent runup in boxed beef

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher on the recent strength in boxed beef.  August live cattle closed $.80 higher at $124.05 and October lean hogs closed $.82 higher at $128.97.  August feeder cattle closed $.30 higher at $159.20 and September feeder cattle closed $.35 higher at $162.87. 

It was an active Wednesday for direct cash cattle trade.  Deals in Nebraska were at $125 live and $198 dressed, which is $1 higher than last week’s business. Many of those are marked for delayed delivery.  There were also dressed deals in Iowa reported at $198.  Live deals in Kansas and Texas were at $121 with a few at $122 live, $1 to $2 higher than last week’s weighted averages. Asking prices were at $123 plus live in the South and $200 plus dressed in the North.  Today’s Fed Cattle Exchange had an offering of 6,078 head, there were 1,393 head sold from $118 to $122. 

At the Hub City Livestock Auction in South Dakota, feeder steers were $3 to $5 higher, with heifers fully steady.  The USDA says there was very good demand for the large offering of attractive yearling steers and heifers.  Many of the cattle offered were off grass and in very desirable light flesh condition.  The drought continues to force cattle off grass much earlier than normal, resulting in cattle being light and very green.  The market was very active as cattle feeders were aggressively purchasing cattle of grass while they were available.  Receipts were up on the week and the year.  Feeder supply included 57% heifers and 93% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 800 to 840 pounds brought $151.50 to $164 and feeder steers 851 to 895 pounds brought $157.50 to $164.70.  Medium and Large 1 feeder heifers 801 to 840 pounds brought $144.50 to $152.50 and feeder heifers 861 to 882 pounds brought $144.50 to $147.50. 

Boxed beef closed sharply higher on good demand for solid offerings.  Choice closed $3.40 higher at $289.24 and Select closed $3.66 higher at $271.15.  The Choice/Select spread is $18.19. Estimated cattle slaughter 121,000 head – up 1,000 on the week and up 3,000 on the year. 

Lean hog futures ended the day mostly lower on spread trade and the lower pork values.  August lean hogs closed $.40 higher at $109.47 and October lean hogs closed $1.25 lower at $90.12. 

Cash hogs closed sharply higher with a solid negotiated run.  Packers bid up to move their desired numbers on Wednesday.  The industry continues to monitor the availability of market-ready barrows and gilts.  The strong demand for US pork on the global market and domestically has been largely supportive of prices and that is expected to continue.  However, should a disruption occur, it would likely cause prices to drop significantly.  Hog weights this week dropped to 276.6 pounds, that’s down 1.5 pounds on the week and 3.1 pounds on the year. Barrows and gilts at the National Daily Direct closed $2.26 higher with a base range of $96 to $106 and a weighted average of $102.66; the Iowa/Minnesota had a weighted average of $104.94; the Western Corn Belt had a weighted average of $104.66.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were $2 to $3 higher with good demand for heavy offerings at $67 to $83.  Barrow and gilt prices were weak with moderate to good demand for moderate to heavy offerings at $64 to $74.  Boars ranged from $45 to $50 and $10 to $12. 

Pork values closed sharply lower – down $4.68 at $122.99.  Loins, butts, hams, picnics, and ribs were sharply lower.  Bellies closed higher.  Estimated hog slaughter 472,000 head – up 7,000 on the week and down 6,000 on the year.  Tuesday’s hog slaughter has been revised to 469,000 head.