Market News

Cattle futures pressured by heavy supply

At the Chicago Mercantile Exchange, cattle futures closed lower.  The lack of direction from the cash cattle trade, softer wholesale values, and concerns over a heavy cattle supply are all contributing to the sluggish cattle prices.  May feeder cattle closed $.57 lower at $137.15 and August feeder cattle closed $1.02 lower at $142.70.  June live cattle closed $.62 lower at $105.75 and August live cattle closed $1.10 lower at $103.37.

Direct cash cattle trade was fairly quiet with very light scattered trade in parts of the North.  Bids are $119 to $121 live and $188 to $192 dressed.  Asking prices have been reported at $128 live and $195-plus dressed.  It looks like significant trade activity will be delayed until the latter part of the week.

At the F and T Livestock Market in Missouri, receipts were down on the week and the year.  Compared to the most recent auction, feeder steers 400 to 750 pounds were $5.00 to $10.00 lower with other weights near steady.  Feeder heifers 500 to 700 pounds were $3.00 to $6.00 lower. The USDA says demand was moderate to good and the supply was moderate.  Feeder supply included 51 percent heifers and 50 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 600 pounds were $168.25 to $180.00 and feeder steers 600 to 700 pounds were $162.00 to $166.75.  Medium and Large 1 feeder heifers 500 to 600 pounds were $152.00 to $158.50 and feeder heifers 600 to 700 pounds were $137.25 to $150.00.

Boxed beef closed mixed – steady on Choice and lower on Select on light to moderate demand and offerings.  Choice up $.03 at $230.96 and Select down $.98 at $208.95.  The Choice/Select spread closed at $22.01.  Estimated cattle slaughter is 118,000 head – up 1,000 on the week and 2,000 on the year.

Lean hog futures ended the day mixed.  A firm move at the midday in wholesale values and the drop in average hog weights were both supportive factors, but the large hog supply is pressuring prices.  Profit taking and contracts’ premium to cash also limited gains in the market.  May lean hogs closed $.27 lower at $65.92 and June lean hogs closed $.27 higher at $76.57.

Cash hogs ended the day higher.  The market continues to watch the availability of market-ready numbers.  Slaughter totals have been down this week.  But, it is unclear if this is the seasonal slowdown – or just a fluke.  If demand remains strong, and the reduction in supply remains steady, it could provide additional support to pork prices.  The average Iowa/Southern Minnesota hog weights for the week ending May 5 was 285.1 pounds, down 0.4 pounds on the week.

Barrows and gilts at the Iowa/Southern Minnesota closed $1.03 higher with a range of $57.50 to $62.00 and a weighted average of $61.30; the Western Corn Belt closed $.89 higher with a range of $54.00 to $62.00 and a weighted average of $61.16; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct is $.65 higher with a range of $54.00 to $62.00 and a weighted average of $60.63.

Butcher hogs at the Midwest cash markets are steady at $37.00 to $44.00.  At the Interior Missouri Direct, receipts were down on the week and the year.  Barrows and gilts are steady to $5.00 higher at $52.00 on light to moderate supply and demand.  Sows are steady at $32.00 to $45.00.  At Illinois, slaughter sow receipts are down on the week.  Prices are steady at $30.00 to $43.00 with moderate demand for heavy offerings.  Barrows and gilts are $1.00 higher at $37.00 to $42.00 with moderate demand for moderate offerings.

Pork values closed higher – up $.74 at $72.04.  The primals were mostly higher led by the nearly $3.00 jump in the bellies.  Estimated hog slaughter is 461,000 head, down 4,000 on the week and up 20,000 on the year.