Market News

Cattle futures pressured by on feed numbers

At the Chicago Mercantile Exchange, cattle futures closed moderately lower, pressured some by Friday’s Cattle on Feed Report.  This afternoon’s Cold Storage report, showed an increase in pounds of beef in freezers, will likely add more pressure to the cattle market.  However, stronger wholesale values could help keep prices supported. October live cattle closed $.90 lower at $112.17 and December contracts closed $1.45 lower at $117.  September feeder cattle closed $.50 lower at $156.45 and October contracts closed $1.77 at $156.30.

Direct cash cattle trade is fairly quiet.  There was a handful of deals reported in Iowa at $173.  This week’s showlists appear to be lower in Kansas, Nebraska, and Texas and somewhat larger in Colorado.  Bids and asking prices aren’t well defined and significant trade volume will likely be delayed until the latter half of the week.

At midsession, at the Oklahoma National Stockyards, receipts are down on the week and the year.  Compared to last week, feeder steers were mostly $1 to $3 lower and feeder heifers were lightly tested with a higher undertone noted.  Steer calves 500 to 600 pounds were unevenly steady and heifer calves were $2 to $3 higher.  The USDA says demand was good and quality was plain to attractive.  Feeder supply included 50 percent steers and 39 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 400 to 500 pounds are priced $184 to $200 and feeder steers 600 to 700 pounds are $153 to $164.  Medium and Large 1 feeder heifers 400 to 500 pounds are $158 to $166 and feeder heifers 600 to 700 pounds are $153 to $157.50.

Boxed beef values closed firm to higher on moderate to fairly good demand and light offerings.  Choice up $1.36 at $206.16 and Select up $.68 at $195.39.  The Choice/Select spread was $10.77.

Estimated cattle slaughter is 119,000 head – up 5,000 on the week and 2,000 on the year.

Lean hog futures closed mostly higher ahead of the Cold Storage report.  Frozen pork supplies are up 5 percent on the month and 1 percent on the year.  The industry continues to monitor the African Swine Fever situation in China as more cases have been identified.  Pork processors are making up for last week’s slowdown in the southeast and ramping production back up – and a lot of focus will be on hog weights over the next few weeks.

October lean hogs closed $.70 higher at $61 and December lean hogs closed $.42 lower at $56.97.

Cash hogs closed higher with strong negotiated purchase numbers.  Pork processors are making up for last week’s slowdown caused by Hurricane Florence with chain speed running at an exceptionally high level.  We’ll keep an eye on hog weights over the next few weeks to see how much pork is added to a market that is heavy and faces demand uncertainties.  The industry continues to monitor trade talks and the growing number of cases of African Swine Fever.  The Quarterly Hogs and Pigs report comes out on Thursday and will likely show another record inventory.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.39 higher with a range of $55 to $63.50 and a weighted average of $61.59; the Western Corn Belt closed $1.38 higher with a range of $53 to $63.50 for a weighted average of $61.52; the Eastern Corn Belt was not reported due to confidentiality; the National Daily Direct closed $1.03 higher with a range of $53 to $63.50 and a weighted average of $60.53.

Butcher hogs at the Midwest Cash Markets were $2 to $5 higher at $36 to $48.  At Illinois, slaughter sow receipts were up slightly on the week and the year.  Prices are firm at $18 to $29 with light to moderate demand for moderate offerings.  Barrows and gilts are frim at $31 to $42.

Pork values closed higher – up $.84 at $80.02.  The primals were mostly higher, led by the butts.  The bellies closed $3.13 lower.  And the pork sector is working to make up for last week’s slowdown.  Estimated hog slaughter is 472,000 head – up 56,000 on the week and 13,000 on the year.