Market News

Cattle futures lower ahead of on feed numbers

 

Chicago Mercantile Exchange live cattle futures were lower on profit taking, slow beef demand, and position squaring ahead of Friday’s USDA numbers. The trade largely ignored the generally higher than a week ago direct cash business that developed during the session. April was down $1.17 at $117.80 and May was $2.27 lower at $103.

Feeder cattle were lower on the same factors as the live pit, also ignoring the direct trade. April was $1.52 lower at $137.22 and May was down $2.25 at $138.42.

Direct cash cattle business was light to moderate, mostly in the South. Sales were reported at mostly $121 live in Texas, up $4 from last week’s weighted average in that state, and $122 in Kansas, also $4 higher. Live trade in Colorado was light, mostly at $119, and dressed trade in the North was also light, mainly at $190 to $192. Given the light trade volume in the North, more business is expected Friday. The USDA’s Cattle on Feed report is out Friday at 3 Eastern/2 Central.

Boxed beef closed lower on light to moderate demand for moderate to heavy offerings. Choice was down $.30 at $211.34 and Select was $.09 lower at $198.48. The estimated cattle slaughter of 115,000 head was down 4,000 on the week and 3,000 on the year.

At the Mitchell Livestock Auction feeder sale in South Dakota, because of very light receipts, no comparison was offered. The USDA says demand was moderate, at best, and quality ranged from plain to attractive, with flesh mostly moderate to moderate plus. All cattle carried varied amounts of tag, with wet, cold weather not allowing feed yards opportunities to dry out. Medium and Large 1 feeder steers weighing 700 to 800 pounds ranged from $136.50 to $154.25 and 800 to 900 pound steers brought $138.50 to $142. Medium and Large 1 feeder heifers weighing 700 to 800 pounds were reported at $136 to $139.50 and 800 to 850 pound heifers sold at $123.50 to $125.50.

Lean hog futures were lower on profit taking, the USDA’s confirmation of record pork production during 2017, and international trade uncertainties. A new round of NAFTA renegotiations got underway this week in Washington D.C. After the close, the USDA reported record pork production during March, continuing the streak that started last September. June was down $.45 at $78.07 and July was $.35 lower at $80.70.

Cash hogs were steady to sharply higher, with solid closing negotiated numbers for the major direct markets. Buyers raised bids again, with tighter market ready numbers. Wholesale pork prices continue to be inconsistent, with plenty of available product and cooler than normal temperatures probably limiting demand. Estimates for Saturday’s kill are around 120,000 head and the weekly total could top 2.4 million head, but that would likely be the last time it hits that mark for at least the next few months.

Pork closed $.04 lower at $68.42. Picnics and bellies were weak to modestly lower, while ribs lost $2.50. Loins, butts, and hams were firm. The estimated hog slaughter of 464,000 head was 1,000 less than last week, but 18,000 more than last year.

Iowa/Southern Minnesota direct barrows and gilts closed $3.53 higher at $48 to $60 for a weighted average of $58.30, the Western Cornbelt was up $3.37 at $48 to $60 with an average of $58.10, and national direct was $3.16 higher at $48 to $60 for an average of $57.33. Butcher hogs at the Midwest cash markets were steady at $33 to $34. Missouri direct was steady at $43 to $48 on light to moderate supply and demand. Sows were steady at $25 to $40. Illinois direct sows were mixed at $30 to $44 on moderate demand for moderate to heavy offerings. Barrows and gilts were $2 higher at $32 to $40 with good demand for moderate offerings. Boars ranged from $8 to $17.