Market News

Cattle futures higher on short covering

At the Chicago Mercantile Exchange, cattle futures ended the day higher on short covering.  Contracts were oversold after three days of sharply lower closes.  Even though the cash trade has given futures contracts a negative tone, contracts are at a deep discount to cash.  June live cattle closed $1.22 higher at $103.50 and August live cattle closed $.05 higher at $99.10.  May feeder cattle closed $.37 higher at $133.10 and August feeder cattle closed $2.00 higher at $138.72.

Direct cash cattle trade was limited on Thursday and prices fell lower.  There were some sales reported in Western Nebraska and Colorado at $112 to $114 live.  It looks like business could be completed for the week – but we still could see a final round of business on Friday.  Asking prices have been around $118 to $120 live and $185-plus dressed.

At the Huss Platte Valley Auction, receipts are down slightly on the week.  Compared to the most recent auction steers over 800 pounds were $8.00 to $13.00 lower and heifers over 700 pounds were $5.00 to $9.00 lower.  The USDA says demand was moderate to good.  The sharp decline in prices this week is related to the sharp losses in the CME cattle futures.  Feeder supply was 48 percent steers and 93 percent of the offering was over 600 pounds.

Boxed beef closed mixed – higher on Choice and weak on Select on moderate to fairly good demand and moderate to heavy offerings.  Choice closed $1.65 higher at $232.68 and Select closed $.26 lower at $208.24.  The Choice/Select spread closed at $24.44.  Estimated cattle slaughter is 120,000 head – up 1,000 on the week and 14,000 on the year.

Lean hogs ended the day mixed taking back some of Wednesday’s losses.  Retail pork values continue to provide support, however, contracts are at a steep premium to cash.  June lean hogs closed $.57 higher at $76.47 and July lean hogs closed $.52 lower at $78.20.

Cash hogs closed higher.  The trade continues to watch the availability of market-ready numbers.  The market was slow yesterday – but the projected seasonal slow-down is expected to provide support to increased packer spending moving forward.  Looking ahead to Saturday’s slaughter totals – they’re pegged at 81,000 head.

Barrows and gilts at the Iowa/Southern Minnesota closed $.51 higher with a range of $64.50 to $66.00 and a weighted average of $65.57; the Western Corn Belt closed $.53 higher with a range of $59.00 to $66.00 and a weighted average of $65.26; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.58 higher with a range of $59.00 to $66.00 with a weighted average of $65.08.

Butcher hogs at the Midwest cash markets are steady to $1.00 lower at $40.00.  At the Interior Missouri Direct, receipts are up on the week and the year.  Barrows and gilts are steady at $52.00 to $58.00 with light to moderate supply and demand.  Sows are $3.00 lower to $2.00 higher at $30.00 to $43.00.  At Illinois, slaughter sow receipts are up on the week and the year.  Sow prices are $1.00 lower at $30.00 to $44.00 with moderate demand for heavy offerings.  Barrows and gilts are $1.00 higher at $37.00 to $46.00 with moderate demand for moderate offerings.

Pork values closed higher – up $1.11 at $75.50.  The primals were mostly higher – led by the more than $3 jumps in both the loins and the bellies.  Estimated hog slaughter is 453,000 head – down 8,000 on the week and up 13,000 on the year.