Market News

Cattle futures mostly lower, watching direct trade

Chicago Mercantile Exchange live cattle futures were down ahead of the week’s widespread direct cash business and Friday’s USDA Cattle on Feed report, which could show year-to-year increases in all the major categories. Monthly livestock slaughter numbers are out Thursday. June was $.20 lower at $110.65 and August was down $.32 at $107.95.

Feeder cattle were mostly lower on the same factors as the live pit. Soon-to-expire May was the exception, up $1.07 at $135.45, and August was down $.40 at $142.60.

Direct cash cattle business was light. By Wednesday afternoon, trade developed at $114 to $115 live in Kansas and Texas, down $1 to $2 on the week, and Iowa at $185 dressed, steady the previous week’s weighted average for Nebraska. Asking prices were $117 to $119 live and $187+ dressed with bids of $115 live and $185 to $186 dressed. The USDA’s Cattle on Feed numbers are out Friday. This week’s offering at the Fed Cattle Exchange was 309 head, 0 sold. The USDA’s Cold Storage report was bullish for beef.

Boxed beef closed mixed on light to moderate demand for moderate to heavy offerings. Choice was up $.17 at $219.75 and Select was down $.77 at $205.81. The estimated cattle slaughter of 120,000 head was down 1,000 on the week, but up 1,000 on the year.

At the Winter Livestock auction feeder cattle sale in Kansas, trade was light because of area weather, with steers unevenly steady and 850 to 900-pound heifers steady to $2 lower. Calves were too lightly tested for an adequate trend, but there was a slightly higher undertone. The USDA says demand was moderate for an average quality offering. Most of the run were steers weighing more than 600 pounds. Medium and Large feeder steers weighing 900 to 985 pounds sold at $115.25 to $129.75 and 1,000 to 1,040-pound steers brought $114.25 to $115.10. Medium and Large 1 feeder heifers weighing 700 to 750 pounds were reported at $124.50 to $126 and 830 to 840-pound heifers ranged from $113.25 to $118.75.

Lean hog futures were lower on cash and wholesale pressure, in addition to position squaring ahead of the Cold Storage report and a lack of fresh news on proposed trade deals. June was down $.45 at 489.65 and July was $.32 lower at $91.05.

Cash hogs were lower with moderate closing negotiated numbers. Buyers were able to limit spending, while still moving the needed numbers, in an effort to improve margins. The industry is also waiting to see what happens with various trade proposals. The expected demand from China has not surfaced and negotiations have stalled, but a deal with Japan and full implementation of the USMCA would be positives. The USDA’s Cold Storage numbers were bullish. The average Iowa/Southern Minnesota barrow and gilt weight for the week ending May 18th was 285.1 pounds, down 1 pound on the week, but up 1.2 on the year.

Pork closed down $2.24 at $84.83. Ribs dropped $13.06 and bellies lost $4.92, with loins, butts, and hams also lower. Picnics were firm. The estimated hog slaughter of 468,000 head was up 8,000 on the week and 12,000 on the year.

Iowa/Southern Minnesota closed $1.64 lower at $72 to $82.50 with a weighted average of $80.37, the Western Corn Belt was down $2.46 at $72 to $82.50 for an average of $79.51, and the Eastern Corn Belt was $.71 lower at $75 to $79.88 with an average of $79.12, while national direct business was down $1.56 at $72 to $82.50 for an average of $79.27. The Midwest butcher hog markets are closed for the rest of the week. Illinois direct sows were $1 to $4 lower at $40 to $61 with light demand for moderate to heavy offerings. Barrows and gilts were weak at $50 to $58 on moderate demand and offerings. Boars ranged from $10 to $30.