Market News

Cattle, hog futures mixed at midweek

At the Chicago Mercantile Exchange, live cattle were mixed, and feeder cattle were higher watching corn and direct cash business develop.  April live cattle closed $.42 lower at $140.10 and June live cattle closed $.55 lower at $136.50.  April feeder cattle closed $3.20 higher at $163 and May feeder cattle closed $2.75 higher at $168. 

It was an active Wednesday for direct cash cattle trade.  Live deals across all areas were marked at $140, $2 lower than last week’s weighted averages.  Northern dressed business was at $224 to $228, mostly $225, also $2 lower than last week’s weighted average basis in Nebraska.  Additional business will likely develop over the balance of the week.  Today’s Fed Cattle Exchange had an offering of 1,950 head of which 35 actually sold at $132, the rest did not meet reserve prices. 

At the Kingsville Livestock Auction in Missouri, compared to last week steer calves under 600 pounds were $5 to $10 higher and those over 600 pounds were steady.  Heifer calves under 550 pounds were firm to $5 higher with heavier weights steady to $3 lower.  The USDA says demand was good to very good for a moderate supply, despite volatility in the futures market and sharply higher corn prices.  Receipts were up on the week and down on the year.  Feeder supply included 51% steers and 58% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 757 to 783 pounds brought $158 to $166.75 and feeder steers 861 to 871 pounds brought $149 to $155.75.  Medium and Large 1 feeder heifers 609 to 635 pounds brought $152.50 to $165 and feeder heifers 701 to 732 pounds brought $145.75 to $153.60. 

Boxed beef closed lower on light to moderate demand for moderate offerings.  Choice closed $.96 lower at $255.72 and Select closed $.18 lower at $251.34.  The Choice/Select spread is $4.38. Estimated cattle slaughter is 123,000 head – even on the week and up 2,000 on the year. 

Lean hog futures ended the day mixed adjusting spreads.  April lean hogs closed $.10 higher at $106.30 and May lean hogs closed $.15 higher at $111.02. 

Cash hogs ended the day sharply higher with a solid negotiated run.  Processors were aggressive in their procurement efforts on Wednesday and bid up to move their desired numbers.  The industry continues to monitor the availability of market-ready barrows and gilts.  Demand for US pork on the global market has been strong, and while that has been supportive to prices, there are long-term concerns which does add some volatility. Barrows and gilts at the National Daily Direct closed $3.74 higher with a base range of $88 to $105 and a weighted average of $98.25 and the Western Corn Belt closed $2.29 higher with a weighted average of $102.93.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $66. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $60 to $72.  Barrows and gilt prices were steady with moderate demand for moderate to heavy offerings at $57 to $63.  Boars ranged from $35 to $40 and $17 to $22. 

Pork values closed firm up $.23 at $108.42.  Bellies were sharply higher. Picnics and ribs were higher.  Loins, butts, and hams were lower to sharply lower. Estimated hog slaughter is 481,000 head – up 8,000 on the week and down 15,000 on the year.