Market News

Live cattle futures supported by direct cash business

At the Chicago Mercantile Exchange, Live and feeder cattle ended the day higher ahead of widespread direct cash business.  There was also additional support from the higher boxed beef during the session.

It was a quiet start to the week for direct cash cattle trade activity. Showlists were are lower across all three major feeding areas.  If business follows the trend of recent weeks, bids and asking prices will likely be slow to surface and significant trade volume will hold out until sometime Thursday or Friday. 

At the Oklahoma National Stockyards, compared to last week, feeder steers steady to $3 lower.  Feeder heifers mostly steady.  Steer calves steady to $5 lower than last week’s sharply higher market.  Heifer calves steady to $3 higher, most advance on 5 weights.  The USDA says demand was good. Quality average to attractive.  Much of the region saw moisture last week with most of the rain in the south and southeast.  Winter pastures have improved with warmer weather.  Receipts were up on the week, but down on the year.  55 percent of the supply included steers with 53 percent of the offering over 600 pounds Medium and Large 1 feeder steers 603 to 646 pounds sold $190 to $212 with an average price of $197.14.  Feeder steers 810 to 897 pounds sold $170.50 to $179 with an average price of $176.99.  Medium and Large 1 feeder heifers 500 to 536 pounds sold $183 to $211 with an average price of $202.02.  Feeder heifers 751 to 772 pounds sold $161 to $173.25 with an average price of $170.78.

Boxed beef closed higher with Choice up $.29 at $269.95 and Select $1.92 higher at $256.21.  The Choice/Select spread is $13.74.

Estimated cattle slaughter was 126,000 head – up 6,000 on the week and up 4,000 on the year. 

Lean hog futures closed higher on oversold signals and higher pork values during the session. 

Cash hogs closed lower. Processors began the week without having to be aggressive in their procurement efforts to meet needs.  The industry continues to monitor the availability of market-ready hogs.  Demand for pork globally and domestically remains strong, but there is some uncertainty about a slowing economy. That could impact overall demand for U.S. product.

Barrows and gilts at the National Daily Direct closed $1.65 lower with a base range of $67 to $80 with a weighted average price of $75.40; at the Iowa/Minnesota $.35 lower with a weighted average price of $78.12; the Western Corn Belt $.69 lower with a weighted average price of $77.78; the Eastern Corn Belt had an weighted average price of $74.83.

Butcher hog prices at the Midwest cash markets were $6 lower at $60. 

Pork values closed $.69 higher at $81.74.  Bellies were sharply lower.  Loins, were higher. Butts, picnics, ribs and hams were sharply higher.

Estimated hog slaughter was 485,000 head – up 5,000 on the week and up 19,000 on the year.  Friday’s estimated kill was revised to 476,000 head and Saturday’s adjusted to 86,000 head.