Market News

Cattle futures continue to wait for direction from cash market

At the Chicago Mercantile Exchange, live cattle futures closed mostly lower as it continues to wait for direction from the cash market and in addition to some profit-taking today after Wednesday big move.  October live cattle closed $.85 lower at $110.10 and December live cattle closed $.05 lower at $116.20.  September feeder cattle closed $.80 lower at $153.17 and October feeder cattle closed $1.40 lower at $155.87.

Direct cash cattle trade has been untested with both bids and asking prices remaining poorly defined.  It looks like we’re headed to another Friday showdown.  And any big moves might come after Friday’s Cattle on Feed report.  The recent rally in nearby futures has caused some feedlot managers to become more bullish in terms of asking prices.  Some cattle are priced around $110 in the South and $172 to $174 plus in the North.  Bids have been reported at $104 live and $165 to $168 dressed.

Boxed beef cutout closed weak on light to moderate demand and moderate offerings.  Choice was down $.53 at $191.51 and Select closed down $.11 at $188.41.

At the Mitchell Livestock Auction in South Dakota, the best test came on yearling steers 750 to 800 pounds and 850 to 900 pounds – and they were sharply higher.  The USDA says demand was good to very good for all weights of calves and yearlings with the best demand for load lots of yearling steers off grass.  It was an active market.  Feeder cattle supply was 48 percent steers and 92 percent of the offering was more than 600 pounds.  Feeder steers, Medium and Large 1’s 756 to 794 pounds were $157.75 to $164.50 and Medium and Large 1’s 852 to 886 pounds were $150.50 to $161.25.  Feeder heifers, Medium and Large 1’s 758 to 798 pounds were $144.50 to $151.85 and Medium and Large 1’s 803 to  848 pounds were $143.50 to $152.00.

Estimated cattle slaughter is 118,000 head, even with a week ago and 2,000 more than last year.

At the Chicago Mercantile Exchange, lean hogs closed sharply lower today on pressure from declining cash and wholesale pork values.  If the market continues to slide – hopefully, it can drum up some demand to provide price support.  The October contract closed at its lowest level ever on Thursday.  The market anticipates at least a slightly bearish Cold Storage report on Friday afternoon. October lean hogs closed $1.32 lower at $57.32 and December lean hogs closed $2.12 lower at $57.80.

Cash hogs closed lower.  The trade continues to monitor the availability of market-ready numbers.  With decent packer margins and a supply that isn’t relinquishing, don’t look for chain speed to slow down anytime soon.

Barrows and gilts at the Iowa/Southern Minnesota closed $.85 lower with a range of $45.00 to $51.50 and an average of $49.43; the Western Corn Belt closed $.83 lower with a range of $45.00 to $51.50 and an average of $49.46; the Eastern Corn Belt had no comparison but a range of $45.50 to $49.25 and an average of $48.69; the National Daily Direct closed $1.12 lower with a range of $45.00 to $51.50 and an average of $49.09.

Butcher hogs at the Midwest cash markets are steady at $33.00 to $40.00.

At the Interior Missouri Direct, barrows and gilts are steady to $2.00 lower at $43.00 to $46.00.  The USDA says both supply and demand are light to moderate.  Sows are steady with sows under 500 pounds $20.00 to $25.00 and sows over 500 pounds $24.00 to $30.00.

At Illinois, slaughter sows are steady with moderate demand for heavy offerings at $24.00 to $32.00.  Barrows and gilts are weak with moderate demand for moderate offerings.

Pork cutout closed sharply lower – down $3.28 at $73.04.  All of the primals closed lower – led by the $9.58 drop in the Rib.

Estimated hog slaughter is 455,000 head – even with last week and up 18,000 on the year.