Market News

Cattle futures supported by strong buying interests

At the Chicago Mercantile Exchange, cattle futures ended the day sharply higher as contracts saw strong buying interests today after the news over the weekend that China has plans to buy a large amount of US agricultural goods.  It isn’t certain China will increase its purchases of US beef – but there is hope.  Other fundamentals were mixed – last week’s selloff left contracts oversold and retail prices were lower at midday, adding pressure to the market.  June live cattle closed $.242 higher at $104.92 and August live cattle closed $2.40 higher at $100.62.  May feeder cattle closed $1.70 higher at $133.92 and August feeder cattle closed $2.87 higher at $140.50.

Direct cash cattle trade is quiet today.  Action is limited to the distribution of new showlists.  Available ready numbers appear to be larger with only Kansas smaller.  Bids and asking prices have yet to be established and it doesn’t look like significant trade volume will happen until the latter part of the week.  Last week’s formula totals were higher in Kansas, Texas, and Nebraska – but total trade volume was mixed.  Higher in Kansas and Texas and lower in Nebraska.

At the Joplin Regional Stockyards in Missouri, receipts are up on the week but down on the year.  At mid-session, compared to last week, steer and heifer calves are $2.00 to $5.00 lower and yearlings are steady to $3.00 lower.  The USDA says demand and supply are moderate.  Feeder supply included 51 percent steers and 39 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 600 pounds were $156.00 to $173.00 and feeder steers 700 to 800 pounds were $136.00 to $150.50.  Medium and Large 1 feeder heifers, 500 to 600 pounds were $133.00 to $147.00 and feeder heifers 700 to 800 pounds were $132.00 to $134.00.

Boxed box closed lower on light to moderate demand and moderate offerings.  Choice ended the day $1.39 lower at $230.82 and Select closed $.94 lower at $207.52.  The Choice/Select spread closed at $23.30.  Estimated cattle slaughter is 120,000 head – up 3,000 on the week and 4,000 on the year.

Lean hog futures ended the day lower despite the sharp jump at midday in pork values.  Contracts are still at a premium to cash and it is too wide compared to normal levels.  The market is also still concerned about supply and demand issues.  The strong move in wholesale values probably limited today’s losses.  June lean hogs closed $.79 lower at $74.00 and July lean hogs closed $.40 lower at $76.85.

Cash hogs closed lower.  The trade continues to watch the availability of market-ready numbers.  Supply is still a concern, especially with demand uncertainties.  Should the seasonal slow-down in slaughter numbers head into full swing, it will likely provide at least some price support to producers.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.38 lower with a range of $59.00 to $65.00 with a weighted average of $63.66; the Western Corn Belt closed $1.20 lower with a range of $59.00 to $65.00 and a weighted average of $63.65; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.13 lower with a range of $59.00 to $65.16 and a weighted average of $64.76.

The Midwest cash butcher hog markets are closed in Wisconsin and Iowa this week.  At the Interior Missouri Direct, receipts are even on the week.  Compared to Friday’s closed barrows and gilts are steady to $1.00 lower at $52.00 to $57.00 on light to moderate supply and demand.  Sows are steady to $2.00 lower at $28.00 to $43.00.  At Illinois, slaughter sows are $1.00 lower at $30.00 to $43.00 with moderate demand for heavy offerings.  Barrows and gilts are steady at $37.00 to $46.00 with moderate demand for moderate offerings.

Pork value was today’s bright spot – closing $2.19 higher at $76.10.  The primals were mostly higher including a nearly $6.00 jump in the ham.  It should be noted bellies opened nearly $10 higher and ended the day $.03 lower at $108.44.  Estimated hog slaughter is 457,000 – down 2,000 on the week and up 17,000 on the year.