Market News

Cattle futures start the week lower

At the Chicago Mercantile Exchange, live cattle ended the day weak on pressure from lower wholesale values during the session.  Feeder cattle futures closed lower on the same factors with additional pressure from the day’s modestly higher move in corn.  October live cattle closed $.07 lower at $98 and December live cattle closed $.35 lower at $104.02.  October feeder cattle closed $.37 lower at $134.20 and November feeder cattle closed $.85 lower at $133.17. 

Direct cash cattle trade activity is off to a quiet start this week.  Bids and asking prices have yet to surface.  Showlists this week are smaller across all feeding areas.  And it is likely significant trade volume will be delayed until the latter half of the week. 

At mid-session at the Oklahoma National Stockyards receipts are down from last week and on the year.  Compared to the most recent sale, feeder steers are $4 to $10 higher.  Feeder heifers $3 to $6 higher.  Demand was very good for feeder cattle after last week’s sharp declines.  Steer and heifer calves were lightly tested with some sales $2 to $3 higher.  The USDA says demand was good for weaned calves, moderate for unweaned calves.  Quality was plain to average with a few attractive and several in thin flesh condition.  Feeder supply included 65 percent steers and 59 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 660 to 697 pounds brought $140 to $149 and feeder steers 866 to 898 pounds brought $129 to $135.25.  Medium and Large 1 feeder heifers 656 to 689 pounds brought $136 to $138.50 and feeder heifers 701 to 748 pounds brought $127.50 to $134. 

Boxed beef closed weak to lower on light demand and moderate offerings.  Choice closed $.26 lower at $220.62 and Select closed $2.03 lower at $196.57.    Estimated cattle slaughter is 117,000 head – up 2,000 on the week and 4,000 on the year. 

Lean hog futures ended the day mixed on commercial spread adjustment.  There is some optimism that demand for US pork will increase significantly on the global market.  October lean hogs closed $2.85 lower at $63.62 and December lean hogs closed $1.97 higher at $70.67. 

Cash hogs closed steady with moderate negotiated purchase totals.  The supply and demand situation continues to limit the markets ability to move higher.  Heavy slaughter runs combined with more than ample supplies of market-ready hogs adds more pork to an already saturated market.  While there is hope demand will increase significantly for US pork on the global market, that has yet to be realized and the market is finding it difficult to turn around and move higher.    Barrows and gilts at the Iowa/Southern Minnesota closed $.23 higher for a weighted average of $45.76; the Western Corn Belt closed $.21 higher for a weighted average of $45.74; the Eastern Corn Belt had no comparison but closed with a weighted average of $44.48; and the National Daily Direct closed $.13 higher with a base range of $44 to $46 with a weighted average of $45.08. 

Butcher hogs at the Midwest cash markets had no comparison but are at $33. At Illinois, slaughter sow prices were weak at $18 to $29 with moderate demand for moderate to heavy offerings.  Barrow and gilt prices were weak at $23 to $31 with light demand for moderate offerings. 

Pork values closed firm – up $.45 at $68.66.  Bellies and loins closed higher.  Picnics were firm.  Buts and ribs were steady.  Hams closed lower.   Estimated hog slaughter is 487,000 head – up 2,000 on the week and up 73,000 on the year.