Market News

Cattle, hog futures higher at midweek

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, supported by higher boxed beef.  Feeders had additional strength from the lower move in corn.  June live cattle closed $.55 higher at $164.57 and August lives closed $.45 higher at $163.40.  May feeder cattle closed $.85 higher at $210.27 and August feeders closed $1.45 higher at $230.95. 

It was another relatively quiet day for direct cash cattle business.  Bids did surface at $172 live in the South and $285 dressed in the North.  Look for packer inquiries to improve and significant trade volume to take place Thursday or Friday.  There were a handful of deals reported on Tuesday, but not near enough to establish a trend.  Wednesday’s Fed Cattle Exchange had an offering of 1,194 head with 1 lot, containing 135 head, which sold at $174.50. 

At the Interstate Regional Stockyards in Missouri, feeder steers under 600 pounds were $3 to $8 higher, and steers over 600 pounds were steady on a light test.  Feeder heifers were steady.  The USDA says demand was good to very good.  Supply was moderate.  Receipts were down on the week and up on the year.  Feeder supply included 38% steers and 26% of the offering was over 600 pounds.  Medium and large 1 feeder steers 450 to 495 pounds brought $266 to $282 and feeder steers 500 to 547 pounds brought $258 to $277.  Medium and Large 1 feeder heifers 451 to 489 pounds brought $236 to $245 and feeder heifers 670 to 673 pounds brought $203 to $207.50. 

Boxed beef closed higher on solid demand for light offerings.  Choice was $1.61 higher at $309.24 and Select closed $.32 higher at $287.94.  The Choice/Select spread is $21.30. Estimated cattle slaughter was 122,000 head – down 3,000 on the week and 2,000 on the year. 

Lean hog futures were higher on oversold signals and firm pork values during the session.  May lean hogs closed $1.40 higher at $78.72 and June lean hogs closed $3.22 higher at $90.27. 

Cash hogs closed mostly sharply higher with a big negotiated run.  That marks back-to-back days where processors had to get a bit more aggressive and bid up to move their needed numbers.  The pattern recently has been one, maybe two days of stronger business sandwiched between several days of lackluster movement at lower prices.  The issue remains that supplies of market-ready hogs are enough that packers have remained in the driver’s seat.  Barrows and gilts at the National Daily Direct closed $2.51 higher with a base range of $61 to $73 and a weighted average of $69.59; the Iowa/Minnesota closed $2.61 higher with a weighted average of $71.58; the Western Corn Belt closed $2.59 higher with a weighted average of $69.07; the Eastern Corn Belt closed $.14 lower with a weighted average of $66.36. 

Butcher hog prices at the Midwest cash markets are $5 lower at $45. At Illinois, slaughter sow prices were $2 lower with moderate demand for moderate offerings at $19 to $29.  Barrows and gilts were steady with moderate demand for moderate offerings at $40 to $50.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed weak – down $.04 at $78.37.  Hams and ribs were lower.  Bellies, butts, loins, and picnics were firm to higher.  Estimated hog slaughter was 477,000 head – up 1,000 on the week and even on the year.  Tuesday hog slaughter has been revised to 470,000 head.