Market News

Cattle futures lower ahead of On Feed report

At the Chicago Mercantile Exchange, live cattle futures ended the day lower on position squaring ahead of Friday’s Cattle on Feed Report and the steady to slightly lower cash trade.  Feeder cattle futures were lower on the same factors with additional pressure from a weaker than expected export sales report from the USDA.  August live cattle closed $.72 lower at $107.40 and October live cattle closed $.50 lower at $108.25.  August feeder cattle closed $1.14 lower at $139.42 and September feeder cattle closed $1.30 lower at $139.47. 

A light direct cash cattle trade developed in several parts of cattle country.  Dressed deals in Nebraska have been noted at $183, fully steady with yesterday’s business.  Live deals in Texas and in Kansas are at $111.   Asking prices for cattle left on showlists remain firm at $112+ live and $183 to $184 dressed. 

At the Mitchell Livestock Auction in South Dakota receipts were down on the week and higher on the year.  Compared to last week, feeder steers 850 to 950 pounds were steady to $3 lower.  A higher undertone was noted on lighter cattle with light flesh.  Feeder heifers 750 to 950 pounds were steady to $3 higher.  There was a large mix of dairy and dairy cross calves on offer.  The USDA says demand was good.  Feeder supply included 54 percent steers and 86 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 873 to 879 pounds brought $146.50 to $147.10 and feeder steers 913 to 935 pounds brought $140.25 to $142.85.  Medium and Large 1 feeder heifers 801 to 827 pounds brought $126.25 to $136.75.  Medium and Large 1 feeder heifers 950 to 972 pounds brought $112.50 to $116.75. 

Boxed beef closed firm to higher on moderate to good demand and moderate offerings.  Choice closed $.77 higher at $213.34 and Select closed $.27 higher at $188.61.   Estimated cattle slaughter is 121,000 head – up 3,000 on the week and 1,000 on the year.

Lean hog futures closed mostly higher on spread trade with support from higher cash trade and higher wholesale values during the session.  August lean hogs closed $.77 higher at $82.77 and October lean hogs closed $.92 lower at $76.90. 

Cash hogs closed higher with fairly large negotiated purchase numbers.  The supply of market-ready hogs remains ample and slaughter totals continue to run above year-ago levels and the demand picture has uncertainties.  While there was some positive news in today’s export report from the USDA, there still hasn’t been the surge of US pork exports to China the market has been expecting.  At some point, those demand expectations have to be met or the market could turn negative very quickly. Barrows and gilts at the Iowa/Southern Minnesota closed $.97 higher with a range of $64 to $76.50 for a weighted average of $74.20; the Western Corn Belt is $1.04 higher with a range of $58 to $76.50 for a weighted average of $73.90; the Eastern Corn Belt closed $1.02 higher with a range of $68 to $68.73 for a weighted average of $68.59; and the National Daily Direct closed $.71 higher with a range of $58 to $76.50 for a weighted average of $72.24. 

Butcher hog prices at the Midwest cash markets are steady at $48. At Illinois, slaughter sow prices are firm at $20 to $31 with moderate to good demand for moderate offerings.  Barrow and gilt prices were firm at $42 to $49 with moderate demand for moderate offerings.  

Pork values closed steady – up $.12 at $76.60.  Bellies closed $3.68 higher.  Ribs and butts were firm to higher.  Loins were steady.  Picnics and hams were lower.  Estimated hog slaughter is 472,000 head – down 7,000 on the week and up 24,000 on the year.