Market News

Cattle, hog futures stumble into back half of the week

At the Chicago Mercantile Exchange, live cattle ended the day sharply lower on profit-taking and broader market pressure.  Feeder cattle were sharply lower again today on the same factors as the live pit.  Losses were limited by the day’s lower corn trade. April live cattle closed $4.25 lower at $92.10 and June live cattle closed $3.82 lower at $85.92.  March feeder cattle closed $.97 lower at $112.57 and April feeder cattle closed $1.25 lower at $109.62. 

A few scattered deals have been reported in Kansas and Nebraska at $110 to $112 live.  That’s higher than the bulk of this week’s live business.  The deals in Nebraska are marked for delayed delivery.  Earlier this week Southern live deals had a wide range of $105 to $112 and Northern dressed business ranged from $168 to $175.  Asking prices for cattle left on showlists are at $115 live in the South and $180 dressed in the North. 

At the Hub City Livestock Auction in South Dakota, a much lighter offering than expected with most weight classes not well compared.  Prices were steady with some higher undertones noted.  There were mostly packages and just a couple of loads – all varied in flesh from light to heavy.  The USDA says quality was average to attractive.  The market was mostly active for the lighter offering.  Many producers are waiting for things to settle down before trying to sell their cattle.  Receipts of 625 head are down significantly on both the week and the year.  Feeder supply included 59 percent steers and 70 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 910 to 925 pounds brought $118.50 to $125 and feeder steers 950 pounds brought $124.  Medium and Large 1 feeder heifers 613 to 632 pounds brought $135.50 to $138.50. 

Boxed beef closed sharply higher again today on good demand and heavy offerings.  Choice closed $7.31 higher at $247.24 and Select closed $9.18 higher at $238.50.  The Choice/Select spread is at $8.74.  Estimated cattle slaughter is 122,000 head – down 1,000 on the week and up 1,000 on the year. 

Lean hog futures ended the day lower on profit-taking with pressure from weakness in wholesale values and broader markets.  April lean hogs closed $.32 lower at $58.15 and May lean hogs closed $3.97 lower at $58.70. 

Cash hogs closed firm with heavy negotiated purchases.  Supplies of ready barrows and gilts are more than ample and that’s been good news as packers have been moving big numbers this week. They’re likely being proactive in the event any number of packing plants are shut down because of a COVID-19 outbreak.  Domestic demand has remained strong and that remains supportive to prices.  There is still a global protein shortage, and as long as there are no disruptions to processing in the US – there is still an opportunity for the US pork industry to capture some of that market. Barrows and gilts at the National Daily Direct closed $.69 higher with a base range of $46 to $59 for a weighted average of $56.23; the Iowa/Minnesota closed $.99 higher for a weighted average of $56.91; the Western Corn Belt closed $.99 higher for a weighted average of $56.85; the Eastern Corn Belt closed $.65 higher for a weighted average of $55.43. 

Butcher hogs at the Midwest cash markets are steady at $36. 

Pork values closed firm – up $.48 at $74.90.  Butts, ribs, and picnics were all sharply higher.  Hams, bellies, and loins all closed sharply lower.  Estimated hog slaughter is 498,000 – up 11,000 on the week and up 20,000 on the year.