Market News

Feeder cattle supported by mostly lower move in corn

At the Chicago Mercantile Exchange, live cattle were mostly lower ahead of the week’s direct business and feeders were higher on the mostly lower move in corn.  April live cattle closed $.40 lower at $164.97 and June live cattle closed $.20 lower at $160.87.  March feeders closed $.10 higher at $189.17 and April feeders closed $.65 higher at $194.22. 

It was a typically quiet Monday for direct cash cattle business.  Showlists this week are higher across all major feeding areas.  Bids and asking prices didn’t surface on Monday, but packers are short-bought in some areas and it could spark business to develop earlier than usual this week. 

At mid-session at the Oklahoma National Stockyards, feeder steers were steady to $2 higher and feeder heifers were $2 to $5 higher.  Steer calves are mostly steady, heifer calves are $3 to $5 higher with heifer calves 400 to 500 pounds up to $15 higher.  The USDA says demand is good and quality is above average.  Receipts were about steady on the week and up on the year.  Feeder supply included 59% steers and 52% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 556 to 596 pounds brought $197 to $238 and feeder steers 750 to 787 pounds brought $174 to $179.50.  Medium and Large 1 feeder heifers 553 to 598 pounds brought $180 to $206 and feeder heifers 602 to 642 pounds brought $180 to $196. 

Boxed beef closed higher on moderate demand for light offerings.  Choice closed $1.06 higher at $288.34 and Select closed $2.17 higher at $279.25.  The Choice/Select spread is $9.09.  Estimated cattle slaughter was 124,000 head – up 20,000 on the week and down 1,000 on the year.

Lean hog futures closed mixed, adjusting spreads there was some pressure from contracts’ premium to the cash index.  April lean hogs closed $1.30 lower at $84.72 and May lean hogs closed $1.22 lower at $94.12. 

Cash hogs closed higher with a solid negotiated run. Demand seems to be on the uptick, especially when looking at recent export sales reports. That’s helping provide much-needed price support.  It could also force packers to get more aggressive in their procurement efforts and bid up to move their needed numbers.  However, they have been able to move at their own pace and if numbers aren’t needed prices have been less than stellar.  Plentiful supplies of market-ready hogs gives packers a little more flexibility. Barrows and gilts at the National Daily Direct closed $.34 higher with a base range of $71 to $79 and a weighted average of $78.02; the Iowa/Minnesota closed $.06 higher with a weighted average of $78.10; the Western Corn Belt closed $.32 higher with a weighted average of $78.04.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $66. At Illinois, slaughter sow prices were steady with light demand for light offerings at $50 to $62.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boars ranged from $15 to $20 and $10 to $13. 

Pork values closed higher – up $.59 at $85.94.  Butts, loins, ribs, and bellies were all higher.  Picnics were firm.  Hams were lower. Estimated hog slaughter was 482,000 head – even on the week and up 30,000 on the year.