Market News

Live cattle mixed as markets wait for direction

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were lower waiting for direct cash business to develop.  June live cattle closed $.95 higher at $164.82 and Auguste lives closed $.65 higher at $163.12.  August feeder cattle closed $.32 lower at $231.15 and September feeders closed $.37 lower at $233.95.

While packer inquiry improved throughout the day Wednesday, direct cash cattle business remained relatively quiet.  Bids were at $167 to $177 live and $280 to $282 dressed.  Asking prices were at $172-plus live in the South and $282-plus dressed in the North.  Look for significant trade volume to take place before the end of the week.

At the Kingsville Livestock Auction in Missouri, load lots of yearlings sold steady to firm, steer calves were $5 higher.  Heifer calves were $5 to $10 higher.  The supply of feeders was moderate with a large percentage of calves under 600 pounds.  The USDA says demand was good and the market was active throughout the day.  Receipts were down on the week and up on the year.  Feeder supply included 57% steers and 39% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 539 pounds brought $248 to $266 and feeder steers 819 to 823 pounds brought $207.75 to $209.35.  Medium and Large 1 feeder heifers 502 to 546 pounds brought $227.50 to $240 and feeder heifers 712 to 729 pounds brought $200 to $213. 

Boxed beef ended the day lower on light demand for moderate offerings.  Choice was $1.32 lower at $298.15 and Select was $1.46 lower at $282.89.  The Choice/Select spread was $15.26.  Estimated cattle slaughter was 126,000 head – even on the week and up 3,000 on the year.

Lean hog futures ended the day lower, pressured by the lower move in pork values, ongoing demand uncertainties, and contracts’ premium to cash.  June lean hogs closed $2.32 lower at $84.87 and July lean hogs closed $2.57 lower at $85.55. 

Cash hog closed higher with a huge negotiated run.  Processors had to get more aggressive in their procurement efforts and bid up to move needed numbers.  Demand on the global market for US pork has been relatively strong and that’s helping provide some price support.  There’s some optimism about a boost to domestic demand as the summer grilling season nears.  But there is some concern about the long-term impact of California’s Proposition 12. Hog weights are down slightly on the week at 285.0 pounds, which is also 1.4 pounds below year-ago levels. Barrows and gilts at the National Daily Direct closed $1.95 higher with a base range of $72 to $90 and a weighted average of $84.74; the Iowa/Minnesota closed $2.55 higher with a weighted average of $87.49; the Western Corn Belt closed $2.59 higher with a weighted average of $87.39; the Eastern Corn Belt closed $1.97 higher with a weighted average of $79.21. 

Butcher hog prices at the Midwest cash markets are steady at $52.At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $9 to $18.  Barrows and gilts were steady with moderate demand for moderate offerings at $43 to $53.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed lower – down $.67 at $83.07.  Loins, hams, and picnics are all lower.  Bellies, ribs, and butts were all higher.  Estimated hog slaughter was 466,000 head – up 1,000 on the week and down 9,000 on the year.