Market News

Cattle futures higher on cash support

At the Chicago Mercantile Exchange, live cattle ended the day higher on expectations that the higher cash trade will carry over into this week.  Feeder cattle futures were higher on the same factors with additional support from the day’s weaker move in corn. October live cattle closed $1.17 at $110.62 and December live cattle closed $1.30 higher at $113.45.  October feeder cattle closed $1.45 higher at $145.55 and November feeder cattle closed $1.82 higher at $146.07. 

Direct cash cattle trade activity was pretty typical to start the week.  Bids and asking prices are slow to surface, although some very early asking prices have been noted in parts of Nebraska at $115 live and $180 dressed.  Showlists this week appear to be mixed, slightly higher in Nebraska and Colorado, somewhat smaller in Kansas, and lower in Texas.  Significant trade volume will likely be delayed until midweek or later. 

At the Oklahoma National Stockyards, receipts are up on the week and the year.  Compared to last week’s sale, feeder steers under 800 pounds were steady to weak and were $1 to $3 higher.  Feeder heifers have not been well tested in the early rounds.  Steer and heifer calves were mostly steady on very limited comparable offerings.  The USDA says demand was moderate and quality was mostly plain to average.  Feeder supply included 61 percent steers and 53 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 705 to 741 pounds brought $144 to $154 and feeder steers 753 to 766 pounds brought $148 to $150.  Medium and Large 1 feeder heifers 629 to 648 pounds brought $137 to $143 and feeder heifers 650 to 693 pounds brought $139.50 to $144. 

Boxed beef closed firm to higher on moderate to good demand and offerings.  Choice closed $1.56 higher at $217.22 and Select closed $.65 higher at $189.33.  The Choice/Select spread closed at $27.89.  Estimated cattle slaughter is 117,000 head, up 1,000 on the week and 2,000 on the year. 

Lean hog futures ended the day mostly firm with support from anticipated demand increases following last week’s preliminary trade deal with China and the higher wholesale values during the session.  October lean hogs closed $.15 higher at $63.07 and December closed $.47 lower at $60.12. 

Cash hogs closed firm with solid negotiated purchase totals.  Packers had to bid up to move their desired numbers this afternoon.  Demand potential continues to be the big driver behind the strength in the cash market.  The market has started to see increases in sales of US pork to China and that’s been supportive to prices.  While the announcement of a partial deal with China last week is seen as good news, the industry is waiting to see a timeline and more details emerge.  Should the pork sector see a disruption to demand, it would be detrimental to pork prices.  Barrows and gilts at the Iowa/Southern Minnesota closed $.45 higher for a weighted average of $58.52; the Western Corn Belt closed $.44 higher for a weighted of $58.41; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.89 higher with a base range of $50 to $60 for a weighted average of $57.50. 

Butcher hog prices at the Midwest cash markets have no comparison but are at $36.

Pork values ended the day firm – up $.42 at $77.94.  Ribs, picnics, and loins were all higher.  Hams are firm.  Bellies closed weak.  Butts were sharply lower.   Estimated hog slaughter is 491,000 head, up 7,000 on the week and up 30,000 on the year.  Saturday’s hog slaughter has been revised to 255,000 head.