Market News

Live cattle futures mostly higher ahead of direct trade

At the Chicago Mercantile Exchange, live cattle were mostly higher waiting for direct business to develop and feeders were lower on the higher move in corn. October live was up $.07 at $145.75 and December was $.37 higher at $151.35. September feeders were $1.47 lower at $181.52 and October was down $2.45 at $183.12.

Direct cash markets were at a standstill. Bids and asking prices were not established, with widespread trade expected to wait until at least Wednesday. This week’s show list looks mixed, higher in Nebraska and Colorado, but lower in Kansas and Texas.

At midsession, at the Oklahoma National Stockyards, compared to two weeks ago feeder steers are lightly tested and very uneven, but overall, mostly steady.  Steer calves are $4 to $8 lower.  Feeder heifers are steady to $2 higher in a light test and heifer calves are unevenly steady.  There’s a large run this week even though many producers are doing fieldwork.  A very light amount of rainfall fell in the northwest part of the state, but not enough to provide any significant drought
relief.  Receipts are up on the week and the year.  Feeder supply included 61% steers and 40% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 564 to 598 pounds brought $175.50 to $190 and feeder steers 654 to 694
pounds brought $174 to $189.  Medium and Large 1 feeder heifers 503 to 543 pounds brought $172 to $185.50 and feeder heifers 661 to 697 pounds brought $163 to $176.

Boxed beef was higher with light movement. Choice was up $1.68 at $258.94 and Select was $1.03 higher at $235.76. Estimated cattle slaughter 125,000 head – up 12,000 on the year.

Lean hog futures ended the day mixed, adjusting spreads. October was $1.30 lower at $91.87 and December was down $.35 at $82.77.

Cash hog closed nearly unchanged to lower with light negotiated sales. The slide in prices continues as processors haven’t been aggressive in their procurement efforts and aren’t bidding up.  Demand for US pork on the global market and domestically has been strong overall, but there are long-term concerns and that is putting pressure on markets. All eyes remain on the availability of market-ready hogs, and many are looking ahead to this month’s Quarterly Hogs and Pigs report.

Barrows and gilts at the National Daily Direct were $1.85 lower with a base price range of $84 to $100 and a weighted average of $89.43, while Iowa/Southern Minnesota was down $2.31 at $95.56 and the Western Corn Belt was up $.02 at $95.54. The Eastern Corn Belt direct market was not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets were steady at $70. At Illinois, slaughter sow prices were $2 lower with light to moderate demand for light offerings at $58 to $70.  Barrows and gilts were $2 lower with moderate demand for moderate offerings at $70 to $79.  Boars ranged from $40 to $42 and $10 to $20.

Pork values closed $2.84 higher at $105.71. Bellies gained $11.58, with loins, ribs, and hams also higher, canceling out lower moves in butts and picnics. Estimated hog slaughter is 483,000 head – up 13,000 on the year.