Market News

Cattle futures close higher despite outside pressure

At the Chicago Mercantile Exchange, cattle futures closed higher on solid commercial buying interest.  Tuesday’s gains are even more impressive considering the weakness in the outside markets.  Contracts are at a discount to cash.  The day’s lower move in corn also was supportive to higher feeder cattle trade.  June live cattle closed $.22 higher at $108.52 and August live cattle closed $1.25 higher at $106.42.  August feeder cattle closed $.65 higher at $149.62 and September contracts closed $.77 higher at $149.90.

Direct cash cattle trade is at a standstill.  Reports have a few showlists in the South priced around $115 and some in the North at $183.  Packers are short-bought and bids should start to surface sooner rather than later.  But – it looks that may not happen until Wednesday or even later.

At the close, at the Oklahoma National Stockyards receipts were down on the week and up on the year.  Compared to last week’s auction, feeder steers and heifers were steady to $4 higher and steer and heifer calves 500 to 600 pounds were $1 to $5 lower on a lighter test.  The USDA says trade is active and demand is good for long-weaned feeder cattle.  Quality is plain to average with some attractive.  Feeder supply included 62 percent steers and 75 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 700 to 749 pounds brought $142.25 to $150 and feeder steers 850 to 898 pounds brought $132.50 to $144.50.  Medium and Large 1 feeder heifers 550 to 598 pounds brought $151 to $164 and feeder heifers 673 to 693 brought $148.50 to $155.

Boxed beef cutout closed lower on light to moderate demand and moderate offerings.   Choice down $1.01 at $219.70 and Select down $1.90 at $202.30.  The Choice/Select spread closed at $17.40.  Estimated cattle slaughter is 120,000 head – even on the week and the year.

Lean hog futures closed sharply lower on profit taking and concerns about trade stability.  Any changes to the ongoing trade talks with Mexico and China will continue to impact trade and there is concern that pork exports will drop sharply throughout the remainder of the year.  Outside markets also added pressure to prices.  July lean hogs closed $1.85 lower at $81.87 and August lean hogs closed $1.70 lower at $77.72.

Cash hogs ended the day firm.  Processing margins have narrowed as the cost of live inventory has been on the rise at a much quicker rate than the increase in pork values.  Buyers have been trying to move large numbers of hogs with lower bids and haven’t been successful.  Hot temperatures are also supportive to prices – they are contributing to the already shrinking available numbers.  It goes without saying – the market is still nervous with the large supply of hogs and the continued negative trade rhetoric.  Barrows and gilts at the Iowa/Southern Minnesota closed $.54 higher with a range of $77 to $83.50 for a weighted average of $83.37; the Western Corn Belt closed $.53 higher with a range of $77 to $83.50 for a weighted average of $83.35; the Eastern Corn Belt was not reported due to confidentiality; the National Daily Direct closed $.34 higher with a range of $77 to $83.50 for a weighted average of $83.16.

Butcher hogs at the Midwest cash markets are steady at $53 to $58.  At the Interior Missouri Direct, receipts are up on the week and down on the year.  Barrows and gilts are steady at $65 to $69 with light to moderate supply and demand.  Sows are steady at $34 to $44.  At Illinois, slaughter sow receipts are down slightly on the week and up on the year.  Sow prices are $1 higher at $36 to $51 with moderate demand for moderate offerings.  Barrows and gilts are steady at $51 to $59 with moderate demand for moderate offerings.

Pork cutout values closed firm – up $.30 at $84.71.  The primals were mixed with strong gains in the ribs, the butts, and the loin, but declines in the picnic, the ham, and the belly.  Estimated hog slaughter is 448,000 head – up 1,000 on the week and 14,000 on the year.

 

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!