Market News

Cattle futures higher heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, watching direct cash business develop.  June lives closed $2.55 higher at $177.80 and August lives closed $2.67 higher at $176.05.  May feeders closed $2.15 higher at $246.25 and August feeders closed $2 higher at $258.30. 

There was another round of direct cattle business Thursday following Wednesday’s light trade.  Live deals in the South were at $182 to $183, fully steady to $1 higher than Wednesday and the prior week’s weighted averages.  Dressed business in the North was at $294 to $295, $2 to $3 higher than the prior week’s weighted average basis in Nebraska.  More business is expected to develop before the end of the day Friday.

At the OKC West Livestock Auction in Oklahoma, feeder steers were $5 to $7 higher with instances of $10 higher on lighter cattle suitable for grazing.  Feeder heifers were $2 to $5 higher.  The UDSA says demand remains good to very good.  Steer and heifer calves were $3 to $5 higher.  The USDA says demand was good, and quality was plain to average, with a few attractive.  Receipts were up on the week and the year.  Feeder supply included 48% steers and 93% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 850 to 887 pounds brought $225.50 to $238 and feeder steers 951 to 988 pounds brought $215 to $219.  Medium and Large 1 feeder heifers 705 to 740 pounds brought $230 to $245 and feeder heifers 801 to 849 pounds brought $213.50 to $224.

Boxed beef closed lower on light demand for solid offerings.  Choice was $.08 lower at $295.66 and Select was $2.01 lower at $288.41.  The Choice/Select spread is $7.25. Estimated cattle slaughter was 125,000 head – down 7,000 on the  week and up about 2,000 on the year.

Lean hog futures were pressured by sharply lower cash business and long-term demand questions.  May lean hogs closed $2.07 lower at $95.27 and June lean hogs closed $2.45 lower at $105. 

Cash hogs closed sharply lower with a light negotiated run.  Processors have been pretty aggressive recently in their procurement efforts as they’ve been working to meet demand needs with the recent uptick in slaughter pace.  It wouldn’t be a surprise to if they had needed numbers on hand. It was a solid week for export sales again, but long-term demand concerns do pop into the market every now and again.  The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $2.78 lower with a base range of $84.45 to $93 and a weighted average of $88.71; the Iowa/Minnesota closed $1.87 lower with a weighted average of $90.12; the Western Corn Belt closed $2.80 lower with a weighted average of $89.53; the Eastern Corn Belt had a weighted average of $87.67. 

Butcher hog prices at the Midwest cash markets are steady at $52. 

Pork values closed firm – up $.22 at $97.44.  Ribs, hams, picnics, and bellies were all higher.  Butts and loins were sharply lower. Estimated hog slaughter was 485,000 head – down 1,000 on the week and up about 10,000 on the year.