Market News

Cattle futures supported by strong cash business

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher watching direct cash business develop at solidly higher prices.  June live cattle closed $1.82 higher at $166.10 and August lives closed $1.55 higher at $164.12.  August feeder cattle closed $1.05 higher at $234.52 and September feeder cattle closed $.87 higher at $237.62. 

It was an active day for direct cash cattle business.  Live deals in the South were at mostly $171, steady in Kansas and $1 higher in Texas than the previous week’s business.  In the North, dressed deals were at $285 to $286, $4 to $5 higher than the prior week’s weighted average basis in Nebraska.  Live deals were at $180 to $182.  Asking prices for what’s left on showlists are firm at $174 live and $287 dressed. 

At the Hub City Livestock Auction in South Dakota, the best test was on steers 800 to 849 pounds which were $3 higher, 850 to 949 pounds steers were $6 to $8 higher.  The best test on heifers, 700 to 749 pounds, were $3 higher.  The USDA says most other weight classes saw higher undertones.  Demand was very good for the lighter offering which features a couple of strings of steers and many packages, including quite a few fall calves.  Quality was mostly average to attractive, and flesh varied, from mostly light to moderate plus.  The market was active.  Grass conditions look very good.  Receipts were down on the week and the year.  Feeder supply included 69% steers and 89% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 715 to 743 pounds brought $250.50 to $264 and feeder steers 905 to 947 pounds brought $214.50 to $218.  Medium and Large 1 feeder heifers 653 to 698 pounds brought $223 to $229 and feeder heifers 768 to 794 pounds brought $208 to $215. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice was $2.44 lower at $298.30 and Select closed $2.51 higher at $283.79.  The Choice/Select spread is $14.51.    

Estimated cattle slaughter was 126,000 head – even on the week and up 2,000 on the year.

Lean hog futures ended the day mixed adjusting spreads.  The market remains uncertain about where demand for pork is headed. June lean hogs closed $.87 lower at $79.80 and July lean hogs closed $.15 lower at $80.82. 

Cash hogs closed lower with a large negotiated run.  Processors started the day more aggressive in their procurement efforts and bid up to move needed numbers.  The cash hog market hasn’t been consistent recently, and with ample supplies of market-ready hogs, business has been moving at the will of the packers.  Demand for US pork on the global market has held relatively strong and there is optimism the summer grilling season will improve domestic demand. Barrows and gilts at the National Daily Direct closed $1.64 lower with a base range of $73 to $88 and a weighted average of $82.19; the Iowa/Minnesota closed $.55 lower with a weighted average of $86.88; the Western Corn Belt closed $.50 lower with a weighted average of $86.88; the Eastern Corn Belt had no comparison but a weighted average of $76.50. 

Butcher hog prices at the Midwest cash markets are steady at $60 and up from the most recent reports in Garnavillo, Iowa at $66. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $10 to $20.  Barrows and gilts were steady with moderate demand for moderate offerings at $44 to $54.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed lower – down $2.63 at $80.87.  Bellies were sharply lower.  Picnics, hams, and loins were lower.  Butts and ribs were higher. Estimated hog slaughter was 472,000 head – up 6,000 on the week and down 1,000 on the year.