Market News

Cattle futures fall to pressure of outside markets

At the Chicago Mercantile Exchange, cattle futures closed slightly lower falling to pressure from the outside markets and uncertain export future.  The lack of direction from the cash trade hasn’t helped the futures markets gain any momentum.  June live cattle closed $.37 lower at $108.65 and August contracts closed $.52 lower at $106.12.  August feeder cattle closed $.95 lower at $148.47 and September contracts closed $.79 lower at $149.25.

Another quiet day in cattle country.  Bids are at $108 live and $172 to $178 dressed – that’s still some distance between the firm asking prices of $115 live and $183-plus dressed.  The widespread looks to keep buyers and sellers at a standoff and like significant trade volume will be delayed until sometime on Friday.

At the Hub City Livestock Auction in South Dakota, receipts are down on the week and up on the year.  Steers 900 to 950 pounds were $3 to $4 higher, steers 951 to 1000 pounds were steady to $1 lower, 1001 to 1100 pounds were $2 to $4 higher with instances of $5 higher.  The best test on heifers 900 to 950 pounds were $3 to $4 lower.  The USDA says demand was good to very good for strings and loads of finishing type cattle – depending on the flesh condition and the market was active.  There was very good demand for cattle suitable for backgrounding and grass programs.  Feeder supply included 63 percent steers and 92 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 850 to 897 were $137.25 to $149.25 and steers 964 to 998 brought $125 to $132.90.  Medium and Large 1 feeder heifers 601 to 644 pounds brought $149 to $160 and feeder heifers 908 to 940 brought $116 to $121.

Boxed beef cutout values closed mixed on light to moderate demand and offerings.  Choice down $.88 at $217.41 and Select up $.56 at $201.61.  Estimated cattle slaughter is 121,000 head – up 5,000 on the week and the year.

Lean hog futures closed mixed with nearby contracts closing higher despite negative export data and tightening packer margins.  Cash fundamentals recently have been strong, but the concern over supply and demand uncertainties remain in the forefront.  July lean hogs closed $.45 higher at $80.47 and August contracts closed $.57 higher at $75.72.

Cash hogs ended the day lower.  Chain speed has slowed – partially because of a reduction of available numbers and partially because of poor processing margins.  Buyers have been trying to move more numbers at a lower cost all week. The market is nervous – with the combination of a large hog supply and the ongoing negative trade rhetoric.  Any disruption to trade would be costly to producers.  Barrows and gilts at the Iowa/Southern Minnesota closed $.77 lower with a range of $80 to $82.50 with a weighted average of $81.89; the Western Corn Belt closed $1.03 lower with a range of $75 to $82.50 for a weighted average of $81.49; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct is $.81 lower with a range of $75 to $82.50 for a weighted average of $81.74.

Butcher hogs at the Midwest cash markets are steady at $56 to $58.  At the Interior Missouri Direct, receipts are down on the week and the year.  Barrows and gilts are steady at $68 to $69 with light to moderate supply and demand.  Sows are steady at $34 to $44. At Illinois, slaughter sow receipts are up on the week and the year.  Sow prices are steady at $36 to $53 with moderate demand for heavy offerings.  Barrows and gilts are $1 higher at $51 to $60 with moderate demand for moderate offerings.

Pork cutout closed steady – up $.16 at $85.04.  The primals are mostly lower with gains in the hams and the bellies.  Estimated hog slaughter is 444,000 head – up 1,000 on the week and 7,000 on the year.