Market News

Cattle futures are playing the waiting game

On the Chicago Mercantile Exchange live cattle closed mostly lower and feeder cattle closed lower as they play the waiting game ahead of Tuesday’s Cold Storage report, Wednesday’s Fed Cattle Exchange, and Friday’s Cattle on Feed report from the USDA.  August live cattle closed down $.37 at $106.00 and October lives cattle ended the day down $.05 at $105.85.  August feeder cattle closed $.70 lower at $139.80 and September feeder cattle closed down $.87 at $139.15.

Direct cash cattle trade was at a standstill with action limited to the distribution of new showlists.  The showlists appear to be mixed – larger in Texas, smaller in Nebraska and Kansas, and unchanged in Colorado.  Overall the offering looks smaller than last week.  This week’s trade will likely follow last week’s suit and be postponed until Wednesday – or later.  The Cattle on Feed report comes out on Friday.

Boxed beef cutouts closed lower on light to moderate demand and moderate offerings.  Choice closed down $1.20 193.09 and Select closed $.88 lower at $191.62.

Estimated cattle slaughter is 118,000 – an increase of 2,000 over last week and 6,000 above a year ago.

At the Oklahoma National Stockyards total receipts were up almost 500 head from last week at 4,500.  Feeder steers traded mostly higher and feeder heifers were lightly tested with comparable weight ranges trading $2 higher.  Heavier steer and heifer calves were mostly $3.00 to $4.00 higher.  The USDA says demand was moderate to good and quality was plain to average.  Feeder cattle supply included more than 50 percent steers and 69 percent of the offering was more than 600 pounds.  Medium and Large 1 steers 750 to 800 pounds were $141.00 to $147.00 and Medium and large 1 steers 900 to 909 pounds were $135.50 to $137.10.  Medium and Large 1 heifers 750 to 780 were $130.00 to $135.10 and Medium and Large 1 heifers 850 to 880 were $120.00 to $127.10.

On the Chicago Mercantile Exchange, lean hogs closed sharply lower as prices continue to tumble.  Demand for pork continues to be strong (both domestically and export) but the trade is uncertain that will continue.  October lean hogs closed down $1.45 at $64.67 and December lean hogs were down $1.47 at $59.85.

Cash hogs closed lower. Barrows and gilts at the Iowa/Southern Minnesota closed down $1.53 with a range of $68.00 to $74.00 and an average of $71.68; the Western Corn Belt is $1.60 lower with a range of $68.00 to $74.00 and an average of $71.72; and at the National Daily Direct trade is $1.51 lower with a range of $68.00 to $74.00 and an average of $71.85

Butcher hogs at the Midwest cash markets were steady to $4.00 lower at $48.00 to 50.00

Pork ended the day $.42 higher at $90.56 – with the majority of the primals closing firm to higher.

Estimated hog slaughter is 425,000 – a drop of 21,000 from last week and 11,000 from a year ago.