Market News

Cattle futures drift on cash weakness

At the Chicago Mercantile Exchange, live cattle futures ended the day lower on this week’s expected lower cash trade and weaker wholesale value during the session.  Feeder cattle futures were lower on the same factors.   August live cattle closed $1.62 lower at $105.20 and October live cattle closed $1.47 lower at $106.37.  August feeder cattle closed $.32 lower at $137.80 and September feeder cattle closed $.60 lower at $138. 

A light direct cash cattle trade developed in parts of cattle country.  Light business was reported in Nebraska and Iowa at $114 live and $186 dressed and in Kansas at $113 live.  Asking prices are holding firm at $115-plus live and $186 dressed.  Significant trade volume will likely develop over the balance of the week. 

At the Winter Livestock Auction in Kansas, receipts are down on the week.  Compared to the latest sale, feeder steers 850 to 950 pounds sold mostly steady to $1 higher.  Feeder heifers 750 to 800 pounds sold $6 to $7 higher.  Calves were unevenly steady with limited comparable weights.  Feeder supply included 57 percent steers and 92 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 875 pounds to 898 pounds brought $122.25 to $124.25 and feeder steers 920 to 930 pounds brought $121.50 to $124.10.  Medium and Large 1 feeder heifers 753 to 794 pounds brought $123.25 to $126.75 and feeder heifers 814 to 821 pounds brought $117 to $120. 

Boxed beef closed mixed – steady on Choice and lower on Select on light to moderate demand for moderate offerings.  Choice closed $.24 lower at $222.15 and Select closed $1.52 lower at $206.73.  The Choice/Select spread closed at $15.42.    Estimated cattle slaughter is 121,000 head – up 2,000 on the week and 7,000 on the year. 

Lean hog futures ended the day lower on lower wholesale values and weaker cash trade during the session.  African Swine Fever continues to lend hope that the US pork sector will eventually see significantly higher demand on the global market.  July lean hogs were unchanged at $84.37 and August lean hogs closed $.45 lower at $82.52. 

Cash hogs closed higher with very large negotiated purchase totals.  Packers had to dig deep in order to move their desired numbers today.  Domestic demand has remained fairly solid and that’s also lending support to prices.  The market continues to look for some progress on the USMCA and since the trade and tariff situation was averted with Mexico, that also lends support to higher pork prices.  China remains the wild card as it continues to struggle with African Swine Fever.  The Chinese government has reported a 23 percent decline in their pig herd compared to a year ago.  That opens the door for increased demand for US pork as the country continues to work to meet its protein needs.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.27 higher with a range of $67 to $78 for a weighted average of $76.72; the Western Corn Belt closed $1.30 higher with a range of $67 to $78 for a weighted average of $76.56; the Eastern Corn Belt had no comparison but in a range of $73 to $775.60 for a weighted average of $75.22; and the National Daily Direct closed $.83 higher with a range of $67 to $78 for a weighted average of $76.03. 

Butcher hog prices at the Midwest cash markets are steady at $55 and $50. At Illinois, slaughter sow prices were steady at $26 to $40 with light to moderate demand for heavy offerings.  Barrow and gilt prices were steady at $47 to $51 with moderate demand for moderate offerings. 

Pork values closed lower – down $1.25 at $82.51.  Ribs, bellies, and butts were all sharply lower.  Hams were lower.  Loins steady.  Picnics were firms.  Estimated hog slaughter is 478,000 head – up 3,000 on the week and 31,000 on the year.