Market News

Cattle futures watching cash trade

At the Chicago Mercantile Exchange, live cattle were lower, and feeders were mostly higher waiting for direct markets to develop.  June live cattle closed $.45 lower at $163.87 and August lives closed $.27 lower at $162.47.  August feeder cattle closed $.42 higher at $231.47 and September feeder cattle closed $.47 higher at $234.32. 

It was another quiet day for direct cash cattle business.  Bids didn’t surface.  Early asking prices were floated at $172 live in the South, while nothing was established out of the North.  Look for significant trade volume to pick up over the balance of the week. 

At the Callaway Livestock Center in Missouri, steer calves 400 to 500 pounds were steady, steers 500 to 700 pounds were firm to $5 higher, steers over 700 pounds were lightly tested.  Feeder heifers 400 to 500 pounds were steady to firm, with instances of $5 higher.  Feeder heifers 500 to 550 pounds were firm to $5 higher with a large attractive offering of 550 to 600  pounds heifers that sold with a sharply higher undertone, 600 to 700 pounds heifers were firm.  The USDA says demand was good on a heavy offering with several sales of heifer calves that sold on a very active market.  Overall, the quality was very good.  Receipts were up on the week and the year.  Feeder supply included 48% steers and 20% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 544 pounds brought $260.50 to $276.25 and feeder steers 552 to 596 pounds brought $245 to $264.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $225 to $245 and feeder heifers 550 to 581 pounds brought $222 to $242. 

Boxed beef closed lower on light demand for moderate offerings.  Choice was $2.51 lower at $299.47 and Select was $.36 lower at $284.35.  The Choice/Select spread was $15.12.  Estimated cattle slaughter was 127,000 head – down 1,000 on the week and even on the year.  

Lean hog futures ended the day mixed, with expectations of better near-term demand and some concerns about ample supplies.  June lean hogs closed $1.05 higher at $87.20 and July lean hogs closed $.62 higher at $88.12.

Cash hogs had no comparisons but a huge negotiated run.  Packers got aggressive in their procurement efforts Tuesday afternoon and bid up to move big numbers.  Demand on the global market has been relatively strong and that’s been helping to provide some price support.  However, the ample supplies of market-ready hogs gives packers the upper hand when doing business. Barrows and gilts at the National Daily Direct had a base range of $72 to $86 and a weighted average of $82.79; the Iowa/Minnesota had a weighted average of $84.94; the Western Corn Belt had a weighted average of $84.80; the Eastern Corn Belt had a weighted average of $77.24.

Butcher hog prices at the Midwest cash markets are steady at $52. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $9 to $18.  Barrows and gilts were steady with moderate demand for moderate offerings at $43 to $53.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed lower – down $.63 at $83.75.  Bellies were sharply lower.  Ribs were also lower.  Butts, loins, picnics, and hams were all higher. Estimated hog slaughter was 470,000 – up 19,000 on the week and down 6,000 on the year.  Monday’s hog slaughter has been revised to 464,000 head.