Market News

Cattle futures lower on technical pressure

At the Chicago Mercantile Exchange, live cattle futures stumbled on technical pressure and weak wholesale values.  Feeder cattle futures were lower on technical selling and lack of demand certainty in the market.  April live cattle closed $1.55 lower at $126.77 and June live cattle closed $2.77 lower at $118.35.  May feeder cattle closed $3.10 lower at $146.52 and August feeder cattle closed $2.97 lower at $156.72. 

Direct cash cattle trade has followed its recent trend with light to moderate business developing on Wednesday.  Deals in Kansas and Texas were at $125 to $127 live – that was steady to $1 higher than last week’s weighted averages.  A light trade was also reported in Iowa at $201 to $208 dressed.  Bids in other areas are at $125 to $126 live and $205 dressed.  Asking prices are holding firm at $130 live and $212 dressed.  Significant trade volume could be delayed until Thursday or Friday. 

At the Philip Livestock Auction in South Dakota receipts up from the most recent sale and down on the year.  Compared to the most recent sale, feeder steers were 650 to 700 pounds were steady and other classes of steers were not well compared.  Feeder heifers 600 to 800 pounds were steady.  The USDA says demand was good for several long strings, load lots and packages of feeder steers and feeder heifers.  All sold on a moderate to active market.  Feeder supply included 27 percent steers and 76 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 603 to 646 pounds brought $164 to $171 and feeder steers 891 pounds brought $136.75.  Medium and Large 1 feeder heifers 600 to 636 pounds brought $154 to $164 and feeder heifers 653 to 695 pounds brought $146.50 to $156.50. 

Boxed beef closed lower on light to moderate demand and moderate to heavy offerings.  Choice is $1.15 lower at $232.96 and Select is $.98 lower at $220.28.  The Choice/Select spread is $12.68.   Estimated cattle slaughter is 121,000 head – even on the week and up 3,000 on the year. 

Lean hog futures closed mixed with nearby contracts oversold and due for a bounce.  Firm wholesale values during the session were also supportive.  However, ongoing demand concerns continue to pressure prices.  May lean hogs closed $1.35 higher at $89.17 and June lean hogs closed $.40 higher at $92.77. 

Cash hogs closed mixed with solid negotiated purchase totals.  The supply of ready barrows and gilts is ample, and packers were able to procure their desired numbers for the day.  But there are still a lot of other factors that are impacting how the market moves.  China’s ongoing battle with African Swine Fever keeps the trade optimistic that demand for US pork will increase.  But the fact that they’ve been slow to buy has the industry wondering if the demand will actually increase.  And then there are the trade talks with China which have reportedly made some progress – and negotiators say they are close, but a deal still hasn’t been reached.  Barrows and gilts at the Iowa/Southern Minnesota closed $.50 lower with a range of $73 to $83.50 for a weighted average of $81.99; the Western Corn Belt closed $.07 higher with a range of $73 to $83.50 for a weighted average of $81.73; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.41 higher with a range of $73 to $83.50 for a weighted average of $80.98

Butcher hog prices at the Midwest cash markets are steady at $55.  At Illinois, slaughter sow prices were $2 to $4 higher on lighter sows, prices are $48 to $60 with very good demand for light to moderate offerings.  Barrow and gilt prices were firm at $51 to $60 with good demand for moderate offerings. 

Pork values closed lower – down $1.94 at $86.98.  Picnics, bellies, and loins were sharply lower.  Hams were lower.  Butts were firm.  Ribs closed higher.  Estimated hog slaughter is 477,000 head – even on the week and up 15,000 on the year.