Market News

Cattle futures lower ahead of Friday’s reports

At the Chicago Mercantile Exchange, live cattle future ended the day lower on follow through selling, position squaring ahead of Friday’s Cattle on Feed report, and the weak cash trade.  Feeder cattle futures were lower on the same factors with additional pressure by the day’s higher move in corn.  August live cattle closed $.60 lower at $103.95 and August live cattle closed $.52 at $105.57.  August feeder cattle closed $1.82 lower at $134.70 and September feeder cattle closed $1.62 lower at $135.37. 

A moderate direct cash cattle trade has developed in the South at $110 live.  That’s generally $1 to $2 lower than last week.  A light trade was reported in Nebraska at $180 to $181, about $3 to $4 lower than last week’s weighted average basis.   Asking prices in some areas remain firm at $112 to $115 live and $185-plus dressed.   Seasonal weakness in the cash cattle markets has packer margins widening. 

At the Huss Livestock Market in Nebraska, receipts are down from the most recent sale.  There were not enough comparable offerings to establish a trend.  The USDA says demand was moderate to good from the buyers in crowd.  Feeder supply included 73 percent steers and 81 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 887 to 894 pounds brought $127 to $130.50 and feeder steers 936 to 937 pounds brought $120.50 to $121.  Medium and Large 1 feeder heifers 725 to 730 pounds brought $132.25 to $132.50 and feeder heifers 1030 pounds brought $107. 

Boxed beef ended the day weak on light to moderate demand and offerings.  Choice closed $.87 lower at $220.72 and Select closed $.76 lower at $210.47.  The Choice/Select spread closed at $19.24.    

Estimated cattle slaughter is 121,000 head – even on the week and down 1,000 on the year. 

Lean hog futures closed lower on profit taking, pressure from the recent moves in wholesale values, and a weak export sales report.  Livestock slaughter showed another record month of pork production in May.  The trade is also watching Friday’s Cold Storage report.  July lean hogs closed $2.37 lower at $79.25 and August lean hogs closed $2.10 lower at $80.90. 

Cash hogs ended the day lower with light negotiated purchase totals.  The market continues to be driven by the supply and demand picture.  Large slaughter totals add more pork to the market that’s already saturated.  The latest livestock slaughter report showed another record month for red meat and pork production.  But there still is hope that demand for US pork on the global market will increase significantly.  Barrows and gilts at the National Daily Direct closed $1.52 lower with a base range of $66 to $76 for a weighted average of $74.88.  Prices at the major regional direct markets were not reported at the close due to confidentiality. 

Pork values ended the day weak – down $.25 at $77.44.  Picnics were sharply lower.  Hams and bellies were weak.  Rubs, butts, and loins were all higher. 

Estimated hog slaughter is 478,000 head – up 2,000 on the week and 35,000 on the year.