Market News

Outside markets pressure cattle futures

At the Chicago Mercantile Exchange, live cattle futures were lower on profit-taking ahead of widespread direct cash business.  Feeder cattle futures were lower on the same factors with additional pressure from the outside markets.  August live cattle closed $.27 lower at $108.22 and October live cattle closed $.52 lower at $109.25.  August feeder cattle closed $.60 lower at $141.05 and September feeder cattle closed $.72 lower at $141.87. 

Direct cash cattle trade is at a standstill.  There have been no bids floated and initial asking prices are at $114-plus live in the South and $187 dressed in the North.  With the strength in cash trade at the end of last week, feedlots could holdout for higher prices and significant trade volume may not develop until the latter part of the week.  This week’s Fed Cattle Exchange has an offering of  326 head.   

At the Callaway Livestock Center in Missouri, receipts were down on the week and up on the year.  Compared to last week’s sale, the light test of 500 to 550-pound steers calves sold mostly $5 lower. Steers 600 to 800 pounds were steady and three pot-loads of 870 to 880-pound yearling steers traded with a higher undertone.  Feeder heifers 450 to 500 pounds were steady on a light offering with 500 to 600 pounds sold $2 to $4 lower and weights over 600 pounds were not well tested.  Feeder supply included 53 percent steers and 61 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 869 to 881 pounds brought $137.50 to $141.50.  Medium and Large 1 feeder heifers 552 to 591 pounds brought $140 to $145. 

Boxed beef closed steady to weak on light to moderate demand and moderate offerings.   Choice closed $.34 lower at $212.93 and Select closed $.05 lower $189.16.  Estimated cattle slaughter is 121,000 head – even on the week and up 1,000 on the year. 

Lean hog futures closed mostly higher, with weakness in the nearby contract on spread trade.  Near-term uncertainty and lower cash prices during the session pressured prices while higher wholesale values and long-term demand optimism help to support deferred contracts.  August lean hogs closed $1.05 lower at $79.05 and October lean hogs closed $1.40 higher at $75.30. 

Cash hogs ended the day steady to firm with very large negotiated purchase totals.  The availability of market-ready barrows and gilts is ample and slaughter totals continue to run strong.  Supplies are ample, but the demand picture remains mixed.  There are expectations that demand for US pork will increase on the global market as China sees its hog herd dwindle as the spread of African Swine Fever hasn’t slowed.  The expectations of purchases have yet to be realized and that limits the markets ability to move higher.  Barrows and gilts at the Iowa/Southern Minnesota closed $.19 higher with a range of $58 to $72 for a weighted average of $70.70 and the National Daily Direct closed $.75 higher with a base range of $57 to $72 for an average of $69.36.  Prices at the Western Corn Belt and the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $50.  At Illinois, slaughter sow prices were steady at $19 to $31 with moderate to good demand for heavy offerings.  Receipts were down on the week and the year.  Barrow and gilt prices were steady at $40 to $48 with moderate demand for moderate offerings. 

Pork values closed sharply higher – up $2.90 at $75.80.  Bellies closed $9.53 higher.  Picnics were sharply higher.  Ribs, hams, and loins were firm to higher.  Butts were weak.  Estimated hog slaughter is 475,000 head – down 3,000 on the week and up 24,000 on the year.