Market News

Cattle futures jump on cash expectations

At the Chicago Mercantile Exchange cattle futures closed sharply higher on continued optimism of higher cash trade.  After recent gains, without a lot of fundamental backing contracts could be overbought.  October live cattle closed $2.97 higher at $110.95 and December live cattle closed $2.85 higher at $116.25.  September feeder cattle closed $2.40 higher at $153.97 and October feeder cattle closed $4.47 higher at $157.27.

Direct cash cattle trade was fairly quiet this afternoon all of the day’s sales came from this morning’s Fed Cattle Exchange Auction.  Sharply higher futures sparked some higher Southern asking prices around 110.00-111.00. But, it is looking like significant trade volume will be delayed until the second half of the week.  Bids have been reported at $104 to $107 in the South and $165 in the North.

Boxed beef cutout closed weak on light to moderate demand and offerings.  Choice was down $.07 at $192.04 and Select was down $.31 at $188.52.

At the Huss Platte Valley Auction in Nebraska receipts were down slightly from last week.  Compared to the previous sale steer calves sold $15.00 to $20.00 higher and heifer calves were $5.00 to $10.00 higher on a thin test.  Feeder steers and heifers sold $4.00 to $7.00 higher.  The USDA says demand was good from start to finish for all offerings.  Of the feeders, 59 percent were steers and 61 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 569 to 594 pounds were $169.00 to $180.00 and Medium and Large 1’s 860 to 899 pounds were $153.75 to 160.00. Feeder heifers, Medium and Large 1’s 522 to 530 were $152.50 to $162.50 and Medium and Large 1’s 758 to 795 pounds were $152.25 to $152.75.

Estimated cattle slaughter is 116,000 head, down 1,000 on the week and up 2,000 on the year.

At the Chicago Mercantile Exchange, lean hogs closed mostly higher, despite the sharp drop in the nearby contract.  Low pork prices should help support export demand.  October lean hogs closed $1.47 lower at $58.65 and December lean hogs closed $.20 higher at $59.92.

Cash hogs closed lower.  Seasonally, the hog market is looking at its largest runs of the year and if there are no corrections to today’s slaughter numbers this is the second day in a row of record high kill totals.

Barrows and gilts at the Iowa/Southern Minnesota closed $.87 lower with a range of $45.50 to $52.00 and an average of $50.23; the Western Corn Belt closed $.85 lower with a range of $45.50 to $52.00 and an average of $50.25; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.90 lower with a range of $45.50 to $52.00 and an average of $50.17.

Butcher hogs at the Midwest cash markets are mostly steady, however the Garnavillo, Iowa was lower.  Prices range from $33.00 to $40.00.

At the Interior Missouri Direct, barrows and gilts are steady to $1.00 lower at $45.00 to $46.00.  The USDA says supply and demand are light to moderate.  Sow prices are steady.  Sows under 500 pounds are $20.00 to $25.00 and sows over 500 pounds are $24.00 to $30.00.

At Illinois, slaughter sow prices are steady with moderate demand for heavy offerings.  Prices ranged $24.00 to $32.00.  Barrows and gilts are $1.00 lower at $30.00 to $36.00.  The USDA says both demand and offerings were moderate.

Pork close weak – down $.04 at $76.28.  The primals were mixed with a big jump in the Rib cancelled out by larger declines in the picnic and belly primals.

Another big day for hog slaughter – 455,000 head – up 5,000 on the week and 15,000 on the year.