Market News

Cattle futures surge higher on demand expectations

At the Chicago Mercantile Exchange, live cattle futures closed higher on carry over support from feeder cattle and increased demand expectations.  Feeder cattle closed sharply higher on higher demand and the day’s lower move in corn.  August live cattle closed $2.12 higher at $105.37 and October live cattle closed $1.70 higher at $106.55.  August feeder cattle closed $4.50 higher at $135.82 and September feeder cattle closed $4.47 higher at $136.35. 

Direct cash cattle trade has been quiet most of the day with another very light round of business in the north at $180 dressed.  Bids are on the table at $107 live in the South and at $175 to $180 dressed in Nebraska.  Asking prices are around $110 to $112 live and $180 to $182 dressed.  It’s looking like significant trade volume could be pushed to the end of the week – especially after the cattle future’s strong performance Wednesday afternoon. 

At the Ozarks Regional Stockyards in Missouri, receipts are up on the week and down on the year.  Compared to last week’s sale, steer calves under 700 pounds were $4 to $8 lower with spots of $10 to $12 lower.  Heavier weight steers were steady to $3 higher.  Heifer calves under 650 pounds were $3 to $5 lower with heavier weights steady to $4 higher.  The USDA says demand was moderate on feeder calves and good on green yearlings.  Supply was heavy with several multi pot-load drafts on offer.  Feeder supply included 47 percent steers and 52 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 551 to 596 pounds brought $142 to $156 and feeder steers 900 to 944 pounds brought $120 to $125.  Medium and Large 1 feeder heifers 600 to 642 pounds brought $125 to $135 and feeder heifers 712 to 732 pounds brought $115 to $119.50. 

Boxed beef closed steady to weak on light to moderate demand and moderate offerings.  Choice closed $.06 higher at $219.70 and Select closed $.39 lower at $198.56.  The Choice/Select spread closed at $21.14.   Estimated cattle slaughter is 121,000 head – even on the week and up 1,000 on the year.

Lean hog futures closed lower on profit taking, weak cash trade, and lower wholesale values.  July lean hogs closed $.85 at $73.55 and August lean hogs closed $.70 lower at $75.57. 

Cash hogs closed lower with moderate negotiated purchase totals.  Supplies of market-ready barrows and gilts are ample and slaughter totals continue to run well above year-ago levels adding more pork to a market that is already saturated.  The demand picture is quite uncertain, but there is a glimmer of hope as trade talks are expected to resume this week between the US and China while they’re in Japan.  There’s also optimism that a trade agreement with Japan could be in the works.  Both of those factors are supportive to prices.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.45 lower with a base range of $68.50 to $74.50 for a weighted average of $70.98; the Western Corn Belt closed $1.32 lower with a base range of $62 to $74.50 for a weighted average of $70.74; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.39 lower with a range of $62 to $74.50 for a weighted average of $70.68. 

Butcher hog prices at the Midwest cash markets are $1 lower at $52 to $53. At Illinois, slaughter sow prices were $1 lower at $23 to $35 with light to moderate demand for heavy offerings.  Barrow and gilt prices were weak at $47 to $51 with light to moderate demand for moderate offerings. 

Pork values closed sharply lower – down $1.61 at $73.97.  Ribs dropped $18.35 at the close.  Hams, bellies, and loins were weak to lower.  Butts were steady.  Picnics were firm.  Estimated hog slaughter is 478,000 head – down 1,000 on the week and up 24,000 on the year.