Market News

Cattle higher ahead of cash business

 

Chicago Mercantile Exchange live cattle futures were higher on short covering as traders watched the direct cash cattle markets. Contracts did stay range bound, waiting for packer inquiry to improve. June was $.67 higher at $152.47 and August was up $.80 at $151.42.

Feeder cattle futures were sharply higher on the tight near term supplies. August was up $1.82 at $221.42 and September was $1.65 higher at $220.17.

Wednesday, direct cattle markets were fairly quiet. Packers do look short bought, but widespread trade is probably going to wait until Thursday or Friday. Asking prices are holding at $163 to $164 in the South and $258 to $260 in the North. There are a few bids reported on the live basis at $156 to $157 in Kansas and $158 in Iowa.

At the West Plains-Ozark Regional Stockyards in Missouri, compared to last week, feeder steers were steady to $5 higher and feeder heifers were up $2 to $7. Yearling steers and heifers were $5 to $10 higher. Demand was very good on a moderate supply of feeders and yearling heifers, and a heavy supply of high quality, average to thin condition, yearling steers. Receipts were reported at 2,821 head, down on the week, up on the year. 600 to 700 pound feeder steers sold at $231 to $269, with a package of 44 fancy cattle weighing 652 pounds at $253. 500 to 600 pound feeder heifers ranged from $215 to $248.

Boxed beef was firm to higher on moderate demand and moderate offerings. Choice was up $.04 at $261.11 and Select was $.68 higher at $249.88. The estimated cattle slaughter of 117,000 head was 5,000 more than a week ago, but 3,000 less than a year ago. Lean hog futures were mixed, with May through August up and other months down. Those nearby contracts were supported by short covering, while deferred months were down on demand uncertainties. June was $.60 higher at $83.77 and July was up $.52 at $83.32.

Cash hog trade started the day steady to lower, however, the major direct markets did finish higher, with packer demand improving as the day progressed. There are questions about wholesale demand and slaughter is running ahead of last year’s pace, but packers are still securing supplies for late this week and early next week. For the week ending May 23rd, the average Iowa/Southern Minnesota hog weight was 280.4 pounds. That’s down four tenths of a pound on the week and 6.3 pounds on the year.

National Direct barrows and gilts were up $1.09 at $69 to $81.25 for a weighted average of $78.22, the Western Cornbelt was $1.10 higher at $69 to $81.25 with an average of $79.90, and Iowa/Southern Minnesota was up $.77 at $69 to $81.25 for an average of $79.99. The Eastern Cornbelt was not reported due to confidentiality. Butcher hogs at the Midwest cash markets were steady to $1 lower at $53 to $58. The Missouri Direct base carcass meat price was steady at $72 to $74 with supply and demand both called light to moderate. Missouri sows were steady to $1 higher at $20 to $30. Illinois Direct sows were steady at $22 to $35 on moderate demand for moderate offerings. Illinois Direct barrows and gilts were steady at $51 to $57, also on moderate demand for moderate offerings.

The pork cutout was up $.61 at $87.28. Loins were sharply lower, all other primals were firm to sharply higher. The estimated hog slaughter of 431,000 head was up 8,000 on the week and 14,000 on the year.