Market News

Cattle futures higher ahead of Friday’s report

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher on the potential for higher cash trade this week and position squaring ahead of Friday’s Cattle on Feed report.  October live cattle closed $1.02 higher at $100.37 and December live cattle closed $.85 higher at $106.15.  October feeder cattle closed $1.10 higher at $138.40 and November feeder cattle closed $1.25 higher at $136.30. 

Direct cash cattle trade is underway.  Light business has been reported in parts of the south at $100 to $101 live, about $1 to $2 higher than last week’s weighted averages.  While business is underway, it isn’t enough to establish a trend.  Asking prices are holding at $103 live and $167 to $170 dressed in the North.  Significant trade volume isn’t expected to develop until sometime Thursday or Friday. 

At the Hub City Livestock Auction in South Dakota, receipts were up on the week and the year.  There was another light offering of feeder cattle this week, but compared to recent sales a higher undertone was noted on both steers and heifers.  The USDA says demand was good for the day’s offering of loads and packages, all of which sold on an active market.  Quality and flesh were very attractive with many of the cattle coming off grass were in light flesh.  Feeder supply included 46 percent steers and 95 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 880 to 893 pounds brought $145.25 to $145.50 and feeder steers 904 to 949 pounds brought $133 to $144.30.  Medium and Large 1 feeder heifers 804 to 825 pounds brought $127.50 to $128.25 and feeder heifers 853 to 899 pounds brought $124.25 to $130. 

Boxed beef values closed lower on light demand and heavy offerings.  Choice closed $1.53 lower at $218.24 and Select closed $1.94 lower at $191.97.  The Choice/Select spread closed at $26.27. 

Estimated cattle slaughter is 116,000 head – down 1,000 on the week and down 4,000 on the year. 

Lean hog futures ended the day mostly higher on the hopes that demand for US pork will increase significantly as African Swine Fever appears to be spreading again in parts of Asia.  October lean hogs closed $.82 higher at $62.92 and December lean hogs closed $.12 higher at $67.80. 

Cash hogs closed weak with large negotiated purchase numbers.  The market is looking for any reason to move higher.  While there is optimism global demand for US pork will drastically improve, the demand picture remains uncertain and with the continued large slaughter runs combined with ample supplies of ready barrows and gilts, prices are struggling to find support needed to move higher. Barrows and gilts at the Iowa/Southern Minnesota closed $.39 lower for a weighted average of $45.01; the Western Corn Belt closed $.39 lower for a weighted average of $44.99; the Eastern Corn Belt had no comparison but a weighted average of $44.44; and the National Daily Direct closed $.29 lower with a base range of $41 to $46 for a weighted average of $44.80. 

Butcher hog prices at the Midwest cash markets are lower in Red Oak, Iowa at $30 and are $2 lower in Dorchester, Wisconsin and Garnavillo, Iowa at $31.  At Illinois, slaughter sow prices were $3 lower at $15 to $26 with light to moderate demand for heavy offerings.  Barrow and gilt prices were firm at $25 to $31 with light to moderate demand for moderate offerings. 

Pork values closed steady – down $.10 at $68.11.  Loins dropped $3.28.  Picnics and ribs were weak.  Butts were steady.  Hams and bellies closed higher.  Estimated hog slaughter is 488,000 head – up 1,000 on the week and up 52,000 on the year.