Market News

Cattle futures lower ahead of cash trade

Cattle futures ended the day lower as the market waits for widespread direct cash business.  August live cattle closed $.50 lower at $106.42 and October live cattle closed $.15 lower at $108.50.  August feeder cattle closed $1.10 lower at $151.27 and September feeder cattle closed $.75 lower at $151.70.

Direct cash cattle trade is at a standstill.  Both bids and asking prices are poorly defined.  Cash business could start to take shape sometime on Wednesday, but significant trade volume could be delayed until Thursday or Fridays.  Asking prices are expected to start around $112 to $114 live and $175 to $177 dressed. The market is looking ahead to Friday’s Cattle on Feed and Inventory numbers.

At the close, at the Oklahoma National Stockyards receipts are down on the week and on the year.  Compared to last week feeder steers are mostly steady to $5 lower and feeder heifers 600 to 700 pounds were steady to $1 higher with heavier feeders on a limited test with a lower undertone noted.  Steer and heifer calves are trading with a lower undertone.  There were several strings of new crop calves on offer.  The USDA says demand was moderate with quality plain to average with  few attractive.  The scorching temperatures are impacting receipts and buyer demand.  Feeder supply included 61 percent steers and 72 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 716 to 741 pounds brought $152 to $160 and feeder steers 801 to 849 pounds brought $146 to $148.50.  Medium and Large 1 feeder heifers 557 to 594 pounds brought $149 to $159 and feeder heifers 705 to 741 pounds brought $138 to $144.25.

Boxed beef cutout values closed firm to higher on moderate to fairly good demand and moderate to heavy offerings.  Choice ended the day $.63 higher at $204.39 and Select ended the day $1.19 higher at $196.86.  The Choice/Select spread is $7.53.  Estimated cattle slaughter is 120,000 head – even on the week and down 2,000 on the year.

Lean hog futures closed sharply lower pressured by the day’s cash business.  Carryover from Monday’s losses reactivated concerns of additional long-term pressure with the large hog supply.  August lean hogs down $1.30 at $67.90 and October lean hogs closed $1.80 lower at $52.20.

Cash hogs closed lower.  The week started slow as buyers are watching chain speed and the availability of ready numbers. Slaughter totals have remained well above year ago-levels.  But, the market remains nervous with this large hog supply, especially as the industry faces demand uncertainties with the continued negative trade rhetoric.

Barrows and gilts at the Iowa/Southern Minnesota were $.82 lower with a range of $67.00 to $73.50 for a weighted average of $71.90; the Western Corn Belt were down $.81 with a range of $67.00 to $73.50 for an average of $71.91; the Eastern Corn Belt was not reported due to confidentiality; the National Daily Direct were $.90 lower with a range of $67.00 to $73.50 for a weighted average of $71.86.

Butcher hogs at the Midwest cash markets are $2.00 lower at $46 to $48.  At Illinois, slaughter sow receipts are down on the week and the year.  Prices are steady at $27 to $38 with light to moderate demand for moderate offerings.  Barrows and gilts are $1 lower at $44 to $51 with moderate demand for moderate offerings. 

Pork cutout values closed higher – up $.83 at $84.20.  The primals closed mostly higher – led by the ribs, the hams, the loins, and bellies.  The butts and picnics closed lower.  Estimated hog slaughter is 461,000 head – up 4,000 on the week and up 25,000 on the year.