Market News

Cattle futures take back some of last week’s losses

At the Chicago Mercantile Exchange, live cattle closed higher on strong wholesale values during the session and this week’s potentially higher cash trade.  Feeder cattle futures closed higher on the same factors with additional support from the day’s lower move in corn.  October live cattle closed $1.60 higher at $101.80 and December live cattle closed $1.77 higher at $100.  September feeder cattle closed $.90 higher at $133.72 and October feeder cattle closed $.47 higher at $133.65. 

Direct cash cattle trade activity was at a standstill.  A few asking prices have been floated at $109 live in the South and $178 dressed in the North.  Bids have yet to surface.  This week’s showlists are larger across all feeding areas and it’s likely significant trade volume will be delayed until the latter half of the week.  

At the Kingsville Livestock Auction in Missouri, receipts are up on the week.  Compared to last week’s sale, steers were steady and heifers sold with a higher undertone.  The USDA says demand was good.  The market has rebounded some from last week’s scare and buyers were confident enough to purchase some cattle.  Feeder supply included 44 percent steers and 60 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 854 pounds brought $135.35 and feeder steers 922 pounds brought $130.  Medium and Large 1 feeder heifers 488 pounds brought $161.50 and feeder heifers 679 to 686 pounds brought $140 to $144. 

Boxed beef closed mixed – higher on Choice and steady on Select – on moderate to fairly good demand and light offerings.  Choice is $2.57 higher at $241.70 and Select is $.25 lower at $214.27.  The Choice/Select spread closed at $27.43.   Estimated cattle slaughter is 116,000 head – even on the week and down 2,000 on the year. 

Lean hog futures closed higher on the potential for increased demand and contracts are at a discount to cash.  October lean hogs closed $.95 higher at $65.97 and December lean hogs closed $1.32 higher at $64.17. 

Cash hogs closed lower with solid negotiated purchase numbers.  The rocky supply and demand picture continues to drive the cash hog market.  The supplies of ready barrows and gilts are more than ample and slaughter totals are well above last year’s numbers.  That, combined with the uncertainty in demand keeps prices suppressed.  However, there is a global pork shortage on the horizon.  When it does occur, it could skyrocket demand for US pork, pulling prices higher.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.22 lower for a weighted average of $70.53; the Western Corn Belt closed $.95 lower for a weighted average for $70.34; the Eastern Corn Belt had no comparison but a weighted average of $67.46; and the National Daily Direct closed $.60 lower for a base range of $58 to $72.50 for a weighted average of $69.18. 

Butcher hog prices at the Midwest cash markets were not available at midday. 

Pork values closed lower – down $1.07 at $83.91.  Hams and picnics were sharply lower.  Loins were weak.  Butts and bellies were firm.  Ribs were higher.  Estimated hog slaughter is 482,000 head – up 6,000 on the week and up 17,000 on the year.  Monday’s hog slaughter has been revised to 480,000 head.