Market News

Cattle futures lower on follow-through selling

At the Chicago Mercantile Exchange, live cattle futures closed lower on follow through selling.  Contracts were also pressured by the lower cash trade and weaker wholesale values.  Feeder cattle closed lower on the same factors with additional pressure from the day’s higher move in corn.  August live cattle closed $.47 lower at $104.72 and October contracts closed $.22 lower at $106.15.  August feeder cattle closed $1.57 lower at $136.22 and September feeder cattle closed $1.50 lower at $136.50. 

A very light direct cash cattle trade took place across most areas today.  Live deals in the South ranged from $110 to $112, $1 to $3 lower than last week’s averages and dressed deals in the North were $183 to $186, mostly $186, which is higher than last week’s weighted average basis in Nebraska.  Asking prices are holding at $115-plus live and $188-plus dressed.  We saw a light trade develop on Wednesday at $185 to $186 dressed, $1 to $2 higher than last week’s weighted average basis in Nebraska.  Significant trade volume is expected to develop on Friday. 

At the South Central Regional Stockyards in Missouri, receipts were down on the week.  Compared to the last sale feeder steers under 500 pounds were $4 to $6 higher, steers over 500 pounds were steady to $4 lower.  Feeder heifers were $8 to $12 higher.  The USDA says demand was uneven and supply was moderate.  Feeder supply included 56 percent steers and 24 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 460 to 475 pounds brought $172 to $183 and feeder steers 600 to 615 pounds brought $161 to $165.  Medium and Large 1 feeder heifers 560 to 565 pounds brought $150.50 to $150.75. 

Boxed beef closed mixed – steady on Choice and sharply lower on Select on light to moderate demand and offerings.  Choice closed $.05 lower at $222.10 and Select closed $2.02 lower at $204.71. 

Estimated cattle slaughter is 121,000 head – even on the week and up 6,000 on the year. 

Lean hog futures mostly higher with the exception of the July contracts.  The market continues to find strength in demand expectations.   However, the latest export sales report was disappointing.  July lean hogs closed $1 lower at $83.37 and August lean hogs closed $.30 higher at $82.82. 

Cash hogs closed steady to weak on moderate negotiated purchase totals.  Packers likely have their desired numbers for the week and it’s reflected in the days activity.  The market continues to look at the supply and demand picture.  The significant demand increases that have been anticipated have been slow to develop and the cash market has reflected that.  African Swine Fever remains the wild card and the market is still hopeful demand for US pork on the global market will increase as the disease continues to spread and China has to look to other places to meet its pork and protein needs.  Barrows and gilts at the Iowa/Southern Minnesota closed $.28 lower with a range of $67 to $78  for a weighted average of $76.53; the Western Corn Belt closed $.44 lower with a range of $67 to $76.25  for a weighted average of $76.25; the Eastern Corn Belt closed $.11 lower with a range of $67 to $78.25  for a weighted average of $75.11; and the National Daily Direct closed $.32 lower with a range of $67 to $78.25  for a weighted average of $75.75. 

Pork values ended the day firm – up $.50 at $83.01.  Ribs were sharply higher.  Picnics and loins were firm to higher.  Butts and bellies were steady.  Hams were weak. 

Estimated hog slaughter is 476,000 head – up 2,000 on the week and up 36,000 on the year.