Market News

Cattle futures mostly higher ahead of USDA numbers

Chicago Mercantile Exchange live cattle futures were mostly higher with boxed beef up at midday, getting ready for Friday’s USDA Cattle on Feed report. June was up $.15 at $110.80 and August was $.20 higher at $108.15.

Feeder cattle were mostly higher on the same factors as the live pit. May was $.15 higher at 4135.60 and August was up $.42 at $143.02.

Direct cash cattle business was light. Most of Thursday’s activity was at $116 live in Colorado and Nebraska, down $1 on the week. Clean-up was reported in the South at $114 to $115 live. Wednesday’s trade was light to moderate in the South at $114 to $115 live, $1 to $2 lower, and moderate to active in the North at mostly $184 to $185 dressed, about steady to $1 lower than last week’s weighted average for Nebraska. Asking prices for what’s left were $118+ live and $187 dressed, with bids at $114 to $116 live and $184 to $186 dressed. USDA Cattle on Feed numbers are out Friday. Weekly beef exports of 24,400 tons were up 44% on the week. The USDA says beef production during April was a monthly record.

Boxed beef closed higher on moderate to fairly good demand for moderate offerings. Choice was up $1.04 at $220.79 and Select was $.72 higher at $206.53. The estimated cattle slaughter of 117,000 head was down 4,000 on the week and 5,000 on the year.

At the Woodward Livestock Auction feeder cattle sale in Oklahoma, calves were $3 to $6 higher and heifers were $1 to $4 higher. The USDA says demand was good for all classes, but receipts were down on the week and the year. Medium and Large 1 feeder steers weighing 700 to 800 pounds were reported at $135 to $144 and 800 to 900-pound steers brought $126 to $136. Medium and Large 1 feeder heifers weighing 700 to 800 pounds sold at $123 to $131.50 and 800 to 900-pound heifers ranged from $114 to $121.50.

Lean hog futures were mixed on spread adjustments, demand uncertainties, and questions about the next round of negotiations with China. June was down $.22 at $89.42 and July was $.10 lower at $90.95.

Cash hogs were higher with moderate closing negotiated sales for the major direct markets. Buyers are trying to move the needed numbers, even as concerns about margins and questions about demand linger, and the national negotiated sales only picked up about 1,000 head from open to close. China bought U.S. pork last week, with Mexico, Japan, and Canada also making purchases. Negotiations with China have reportedly stalled and recent rhetoric from Beijing has been harsh, but recent developments on the USMCA are positive for demand. The USDA reported record monthly pork and red meat production during April.

Pork closed $2.21 lower at $82.62. All the primal cuts were lower, including a $10.29 drop in the ribs. Bellies were up at midday, but also finished sharply lower. The estimated hog slaughter of 472,000 head was up 8,000 on the week and 18,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $1.61 higher at $78 to $83 for an average of $81.12, the Western Corn Belt was up $1.76 at $72 to $83 with an average of $81.06, and national direct business was $.98 higher at $72 to $83 for an average of $80.20. Midwest butcher hog markets are closed for the rest of the week. Illinois direct sows were $1 to $3 lower at $38 to $58 on 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.