Market News

Cattle futures mixed ahead of Cattle on Feed report

At the Chicago Mercantile Exchange, cattle futures closed mixed, mostly higher, with nearby contracts under pressure with position squaring ahead of the Cattle on Feeder report, but the higher cash trade did help to support markets.  Concerns about quality and feedlot conditions are adding pressure to prices.  April live cattle closed $.22 lower at $126.92 and June live cattle closed $.07 lower at $122.37.  April feeder cattle closed $.35 lower at $145.32 and May feeder cattle closed $.06 lower at $150.60. 

A light to moderate direct cash cattle is being reported in parts of cattle country.  Deals in Kansas and Texas were at $126 live.  There have been scattered bids in other areas that ranged from $126 to $127 live and $204 dressed.  Asking prices are firm at $128 to $130 live and $208-plus dressed.  Look for trade to finish up before the end of the day Thursday. 

At the Bassett Livestock Auction in Nebraska – receipts are down from two weeks ago.  Compared to two weeks ago, 600-pound steers were $11 higher and feeder steers over 650 pounds were $4 to $6 higher.  Feeder heifers 600 to 650 pounds were $7 to $12 higher.  The USDA says demand was good with several buyers and out-of-state bidders.  Feeder supply included 64 percent steers and 72 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 601 to 626 pounds brought $180.75 to $192 and feeder steers 705 to 746 pounds brought $156 to $168.25.  Medium and Large 1 feeder heifers 556 to 595 pounds brought $156.50 to $168.25 and feeder heifers 654 to 695 pounds brought $148 to $159.75. 

Boxed beef closed mixed – firm on Choice and lower on Select on light to moderate demand and heavy offerings.  Choice closed $.71 higher at $232.76 and Select closed $.99 lower at $220.16.  The Choice/Select spread closed at $12.60.  Estimated cattle slaughter is 121,000 head – that’s up 1,000 on the week and 1,000 on the year. 

Nearby lean hog futures closed lower on spread trade.  Strong wholesale values and demand optimism were supportive factors in the deferred contracts today.  May lean hogs closed $.05 lower at $88.92 and June lean hogs closed $1.00 lower at $96.12. 

Cash hogs closed steady to weak with moderate negotiated purchase totals.  The supply of ready barrows and gilts is more than ample and slaughter runs are continuing at record or near record totals almost daily.  Hog weights were up .8 tenths of a pound on the week and up 1.3 pounds on the year – which adds even more pork to an already saturated market.  Supply concerns and demand optimism seem to play tug of war with the hog markets.  China continues to struggle with African Swine Fever and is turning to the global market to meet their pork needs.  That’s helping to keep pork prices supported right now.  Barrows and gilts at the Iowa/Southern Minnesota closed $.12 higher with a range of $70 to $80 for a weighted average of $78.47; the Western Corn Belt closed $.61 lower with a range of $70 to $80 for a weighted average of $77.75; the Eastern Corn Belt was not reported due to confidentiality; the National Daily Direct closed $.20 lower with a range of $70 to $80 for a weighted average of $77.18. 

Butcher hog prices at the Midwest cash markets in Dorchester, Wisconsin and Garnavillo, Iowa are steady at $60.  Prices are $6 higher at $56 in Red Oak, Iowa this week. At Illinois, slaughter sow prices are firm at $40 to $53 with good demand for moderate to heavy offerings.  Receipts are up on the week and the year.  Barrow and gilt prices were firm at $48 to $56 with moderate demand for moderate offerings. 

Pork values closed firm – up $.47 at $87.  Butts, ribs, hams, and loins were firm to higher.  Picnics and bellies were weak to lower.  Estimated hog slaughter is 477,000 head – up 1,000 on the week and 17,000 on the year.