Market News

Cattle, hog futures higher on demand expectations

At the Chicago Mercantile Exchange, live cattle futures closed higher as contracts were oversold and due for a bounce.  Feeder cattle futures closed higher on the same factors plus some focus on long-term demand potential.  June live cattle closed $.80 higher at $110.47 and August live cattle closed $.97 higher at $107.95.  August feeder cattle closed $1.05 higher at $143.32 and September feeder cattle closed $1.00 higher at $144.22. 

A light to moderate direct cash cattle trade took place in the North at $184 to $186 dressed – mostly $185.  That’s a $7 decline from last week’s weighted average basis in Nebraska.  We also saw some deals at $114 to $117 live – about steady with Wednesday’s business – but still $3 lower than last week’s weighted averages.  Business on Friday will likely be limited to clean-up deals.

At the Springfield Livestock Marketing Center in Missouri, receipts are up on the week and down on the year.  Compared to last week steers and heifers were steady to $5 lower.  The USDA says demand and supply were moderate.  Feeder supply included 49 percent steers and 33 percent of the offering was over 600 pounds.  Medium and large 1 feeder steers 616 to 628 pounds brought $150.25 to $163.85 and unweaned feeder steers 615 to 636 pounds brought $144 to $148.  Medium and Large 1 feeder heifers 500 to 546 pounds brought $134 to $144 and feeder heifers 554 to 570 pounds brought $130 to $137.50. 

Boxed beef closed steady on moderate demand and offerings.  Choice closed $.01 lower at $210.56 and Select closed $.16 lower at $207.88.  The Choice/Select spread closed at $11.68.   

Estimated cattle slaughter is 121,000 head – up 2,000 on the week and down 1,000 on the year. 

Lean hog futures ended the day higher after a rocky start.  While China has cancelled US pork purchases, there is still some hope that the reduced global supply will be supportive to increasing demand for US pork.  June lean hogs closed $.40 higher at $92.22 and July contracts closed $.47 higher at $92.40. 

Cash hogs ended the day mixed with moderate negotiated purchase totals.  Margins have narrowed and packers are starting to slow their procurement efforts, despite the ample supply of market-ready hogs.  We haven’t seen any real signs to support an increase in demand for US pork on the global market as China continues to struggle with African Swine Fever.  And then there are trade talks – which aren’t making any significant steps in the right direction – especially those with China.  All of these issues create more uncertainty in the market.  Barrows and gilts at the Iowa/Southern Minnesota closed $.70 higher with a range of $72 to $85 for a weighted average of $84.48; the Western Corn Belt Closed $0.90 higher with a range of $72.00 to $85 for a weighted average of $84.45; The Eastern Corn Belt closed $1.09 lower with a range of $72.00 to $80.39 for a weighted average of $80.09; the National Daily Direct closed $0.55 lower with a range of $72 to $85 for a weighted average price of $81.26. 

Butcher hog prices at the Midwest cash markets are steady at $57.

Pork values closed weak – down $.68 at $86.13.  Ribs dropped $27.93 today.  Picnics and hams were lower.  Butts and loins were firm to higher.  Bellies sharply higher.  Estimated hog slaughter is 464,000 head – down 14,000 on the week but up 17,000 on the year.