Market News

Cattle futures higher on oversold signals

At the Chicago Mercantile Exchange, live cattle ended the day higher on oversold signals and the higher move in the Dow.  Feeder cattle closed higher on the same factors.  Live cattle closed $.15 higher at $95.45 and August live cattle closed $1.15 higher at $97.30.  August feeder cattle closed $.80 higher at $134.22 and September feeder cattle closed $.87 higher at $135.77. 

Another round of light to moderate trade developed across most of cattle country on Wednesday.  Southern live deals were around $117, which about $1 lower than the bulk of Monday’s trade in those areas, but nearly steady with last week’s weighted averages.  Northern dressed business was reported at around $185, nearly steady with the previous week’s weighted average basis in Nebraska.  Some asking prices are holding around $118 to $120 live and $190 dressed.  Earlier this week Northern dressed deals ranged from $176 to $187 and Southern live trade had a range from $112 to $118. 

At the Ozarks Regional Stockyards, compared to last week, steer and heifer calves and yearling steers traded steady to $3 higher.  Yearling heifers were not well tested.  The USDA says demand was good on a heavy supply.  There was another large run even though the dry weather and sunshine has many beginning the hay harvest.  Receipts are down slightly on the week.  Feeder supply included 58 percent steers and 47 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 553 to 598 pounds brought $149 to $158 and feeder steers 900 to 933 pounds brought $115 to $122.50.  Medium and Large 1 feeder heifers 554 to 598 pounds brought $127.50 to $138 and feeder heifers 602 to 649 pounds brought $125 to $137. 

Boxed beef closed sharply lower again on light demand for heavy offerings.  Choice closed $22.83 lower at $295.90 and Select closed $13.80 lower at $276.78. Estimated cattle slaughter is 114,000 head – up 4,000 on the week, but down 6,000 on the year.  Tuesday’s cattle slaughter has been revised to 116,000 head. 

Lean hog futures ended the day mostly higher on spread adjustments, nearby contracts were pressured by lower cash trade.  June lean hogs closed $3.75 lower at $48.65 and July lean hogs closed $1.40 lower at $53.47. 

Cash hogs closed lower with fairly strong negotiated numbers.  All eyes will be on Thursday’s Export Sales report and the industry remains hopeful demand for US pork stays strong — both domestically and globally.  That will be key moving forward for price strength as supplies of market-ready hogs are heavy and processors are doing the best they can to keep hogs moving through the supply chain.  But even though they are increasing chain speeds they’re still not to pre-COVID-19 levels and that’s still creating a bottleneck and preventing the industry from moving through the hogs that are already backed up.  Barrows and gilts at the National Daily Direct closed $.77 lower with a base range of $28 to $37 for a weighted average of $33.96; the Iowa/Minnesota closed $2.35 lower for a weighted average of $34.52; the Western Corn Belt closed $2.23 lower for a weighted average of $34.64.  The Eastern Corn Belt was not reported due to confidentiality but has a five-day rolling average of $34.74. 

At Illinois, slaughter sow prices were weak with light to moderate demand for light to moderate offerings at $7 to $20. Barrow and gilt prices were weak with light demand for heavy offerings at $16 to $20.  Boars ranged from $1 to $5. 

Pork values closed firm – up $.64 at $75.01.  Hams and bellies closed sharply higher.  Picnics and butts were sharply lower.  Loins and ribs were weak to lower.  Estimated hog slaughter is 429,000 head – up 8,000 on the week, but still down 47,000 on the year.