Market News

Feeder cattle higher on weakness in corn

At the Chicago Mercantile Exchange, live cattle closed higher on spillover support from feeder cattle.  Feeder cattle led the complex higher with support in the day’s decline in corn futures.  August live cattle closed $.85 higher at $108.45 and October live cattle closed $.65 higher at $109.15.  August feeder cattle closed $2.20 higher at $142.17 and September feeder cattle closed $2.62 higher at $142.42. 

Direct cash cattle trade activity started the week quietly.  Showlists this week are mixed and are higher in Texas, somewhat lower in Kansas, and lower in Nebraska and Colorado.  Bids and asking prices have yet to surface and it’s likely significant trade volume will be delayed until the latter half of the week. 

At midsession, at the Oklahoma National Stockyards, receipts were down on the week and up on the year.  Compared to last week, feeder steers were mostly $3 to $4 lower with the exception of 600 to 700-pound steers which were $2 to $3 higher.  Feeder heifers were steady to $3 lower.  Steer and heifer calves 500 to 600 pounds were $3 to $5 lower with lighter weights lightly tested.  The USDA says demand was moderate and quality was average to attractive.  Feeder supply included 59 percent steers and 71 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 601 to 633 pounds brought $153 to $160.50 and feeder steers 917 to 931 pounds brought $129 to $134.25.  Medium and Large 1 feeder heifers 700 to 747 pounds brought $131.50 to $135.50 and feeder heifers 852 to 884 pounds brought $118 to $122.25. 

Boxed beef closed steady on light to moderate demand and offerings.  Choice closed $.10 lower at $213.32 and Select closed $.08 higher at $189.59.  The Choice/Select spread closed at $23.73.   Estimated cattle slaughter is 114,000 head – down 3,000 on the week and up 4,000 on the year.  Saturday’s revised cattle slaughter is 49,000 head. 

Lean hog futures closed mostly higher with spread trade out of August and into deferred contracts.  There was support from the higher cash trade and wholesale values with renewed optimism about the potential for an increase in demand.  August lean hogs closed $.65 lower at $83.22 and October lean hogs closed $.27 higher at $79.20. 

Cash hogs closed sharply higher with very large negotiated purchase totals.   Packers have had to dig a little deeper to move their desired numbers recently and that’s carried over into the start of this week.  While the supply of ready barrow and gilts remains ample, there has been a boost to the market’s moral as we’ve seen some positive exports sales news in recent weeks.  By no means have the demand expectations been realized, but this has definitely been a step in the right direction.  Barrows and gilts at the Iowa/Southern Minnesota closed $3.49 higher with a range of $68 to $80 for a weighted average of $78.78 and the National Daily Direct closed $3.78 higher with a range of $62 to $80 for a weighted average of $76.02.  Prices at the Eastern Corn Belt and the Western Corn Belt were not reported due to confidentiality.   

Butcher hog prices at the Midwest cash markets in Dorchester, Wisconsin are steady at $52.  At Illinois, slaughter sow prices were weak – at $20 to $31 with moderate demand for moderate to heavy offerings.  Receipts were down on the week and up on the year.  Barrow and gilt prices were firm at $43 to $51 with good demand for moderate offerings. 

Pork values closed sharply higher – up $2.08 at $80.61.  Ribs, hams, and bellies all closed sharply higher.  Loins were higher.  Butts and picnics were firm.  Estimated hog slaughter is 473,000 head – up 63,000 on the week and up 49,000 on the year.  Friday’s hog slaughter was revised to 454,000 head.