Market News

Cattle, hog futures lower on profit-taking

At the Chicago Mercantile Exchange, live and feeder cattle were lower on profit-taking.  Markets continue to watch direct cash business develop, which has been at mostly, sharply higher prices.  August lives closed $2.30 lower at $173.20 and October lives closed $2.62 lower at $175.62.  August feeders closed $4.15 lower at $239.10 and September feeders closed $4.25 lower at $242.27. 

Direct cash cattle business is looking to break some records this week.  Deals in the North were marked at $300 dressed, $10 higher than the previous week’s business.  Live deals in the North were at $189 to $191, $3 to $5 higher than last week.  Asking prices were at $183-plus live and $302-plus dressed.  Look for more business to take place over the balance of the week. There was some light trade reported in the North on Tuesday with steers ranging from $290 to $300 dressed, steady to $10 higher than the prior week’s weighted average basis in Nebraska.  Some live deals in the North were reported at $188 to $190, $2 to $4 higher.  There were also a handful of deals reported in Texas at $182 live, $5 higher than the previous week’s business. 

At the Interstate Regional Stockyards in Missouri, compared to two weeks ago, feeder steers were $10 to $20 higher.  Feeder heifers were $10 to $25 higher.  The USDA says demand was very good and supply was heavy.  Higher prices combined with persistent dry conditions have resulted in larger sales that include several high-quality consignments.  Receipts were up on the week and the year.  Feeder supply included 51% steers and 29% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 549 pounds brought $262 to $290 and feeder steers 602 to 648 pounds brought $246 to $258.  Medium and Large 1 feeder heifers 600 to 648 pounds brought $229 to $254 and feeder heifers 651 to 696 pounds brought $234 to $246. 

Boxed beef closed sharply higher on solid demand for moderate offerings.  Choice was $3.79 higher at $325.19 and Select closed $2.12 higher at $301.56.  The Choice/Select spread is $23.63.  Estimated cattle slaughter was 124,000 head – down 3,000 on the week and down 1,000 on the year. 

Lean hog futures ended the day lower on profit-taking. July lean hogs closed $1.40 lower at $86.92 and August lean hogs closed $1.40 lower at $83.10. 

Cash hogs closed mostly higher with another large negotiated run.  Buyer interest from packers remains strong and they are still aggressive in their procurement efforts and biding up to move needed numbers.  Demand for US pork on the global market has been strong and there is optimism domestic demand will see a boost as summer grilling season picks up.  Both could be good news to hog prices. Barrows and gilts at the National Daily Direct closed $.98 higher with a base range of $80 to $96 and a weighted average of $93.11; the Iowa/Minnesota closed $.36 higher with a weighted average of $93.94; the Western Corn Belt closed $.03 lower with a weighted average of $93.52; the Eastern Corn Belt closed $3.96 higher a weighted average of $90.07.

Butcher hog prices at the Midwest cash markets are steady at $60. 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 $46 to $56.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed firm – up $.17 at $85.15.   Butts, bellies, and ribs were higher.  Hams, loins, and picnics were lower. Estimated hog slaughter was 462,000 head – down 18,000 on the week and down 16,000 on the year. 

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!