Market News

Heavy selling pressures cattle futures

At the Chicago Mercantile Exchange, live and feeder cattle futures closed lower for a second consecutive day pressured by heavy selling. With forecasts for nice weather – strong retail demand is likely but will continue to battle heavy supply.  Feeder cattle futures were also pressured by the day’s move up in corn.  June live cattle closed $.27 lower at $105.92 and August live cattle closed $.45 lower at $104.07.  May feeder cattle closed $2.27 lower at $127.90 and August feeder cattle closed $2.72 lower at $143.47.

Direct cash cattle trade is quiet – significant trade volume isn’t likely to develop until the latter part of the week.  There have been a few bids reported in parts of the North – but nothing of significance.

Boxed beef closed sharply higher on moderate to good demand and light to moderate offerings.  Select and Choice rib and loin cuts led the way higher.  Choice closed up $2.01 at $226.43 and Select closed $2.30 higher at $207.09.  The Choice/Select spread closed at $19.34.

At the Callaway Livestock Center in Missouri – receipts were up on the week.  Compared to the previous week, lightweight steer calves were mostly steady with spots of $3.00 lower, midweight steer calves were steady to $5.00 higher and yearling steers had few comparisons.  The USDA says demand was moderate to good on a heavy supply.  Feeder supply included 58 percent steers and 43 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 550 pounds were $177.00 to $189.00 and feeder steers 600 to 650 pounds were $159.50 to $171.00.  Medium and Large 1 feeder heifers 500 to 600 pounds were $150.00 to $161.00 and feeder heifers, 600 to 650 pounds, fleshy were $128.00 to $134.50.

Boxed beef closed sharply higher on moderate to good demand and light to moderate offerings.  Select and Choice rib and loin cuts led the way higher.  Choice closed up $2.01 at $226.43 and Select closed $2.30 higher at $207.09.  The Choice/Select spread closed at $19.34.

Lean hog futures posted solid gains on short covering and positive fundamentals.  Market ready numbers are tightening Less product on the market combined with improvements in pork demand –provide support to prices.  May lean hogs ended the day up $1.15 at $67.45 and June lean hogs closed $1.20 higher at $73.90.

Cash hogs closed higher.  The trade continues to watch the availability of market-ready numbers.  There are expectations that slaughter numbers will slide through the second quarter – and the tighter supplies should fuel higher bids.  But we haven’t reached that point just yet.  When it does happen – stronger prices should follow.

Barrows and gilts at the Iowa/Southern Minnesota closed $.77 higher with a range of $54.00 to $60.00 and a weighted average of $59.12; the Western Corn Belt closed $.73 higher with a range of $54.00 to $60.00 and a weighted average of $59.05; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.50 higher with a range of $51.00 to $60.00 and a weighted average of $58.86.

Butcher hogs at the Midwest cash markets are steady at $37.00 to $44.00.

At the Interior Missouri Direct, barrows and gilts are steady to $2.00 higher at $47.00 to $52.00 on light to moderate supply and demand.  Sows are steady to $1.00 higher at $31.00 to $45.00.

At Illinois, slaughter sows are $2.00 higher at $31.00 to $47.00 with moderate demand for moderate offerings.  Barrows and gilt are steady at $35.00 to $41.00 with moderate demand for moderate offerings.

Pork values closed firm – up $.43 at $69.16.  The primals were mixed with gains in the butt, picnic, and ribs.  Bellies ended the day weak, despite a strong move up at the midday.

Estimated hog slaughter is 466,000 head – even with last week and up 46,000 on the year.