Market News

Cattle futures higher on follow-through buying

At the Chicago Mercantile Exchange, live cattle ended the day higher on follow-through buying and broader market support.  Feeder cattle closed higher on the same factors.  June live cattle closed $.27 higher at $95.72 and August live cattle closed $.57 higher at $97.92.  August feeder cattle closed $.50 higher at $134.72 and September feeder cattle closed $.72 higher at $136.50. 

A light direct cash cattle trade developed on Thursday at much lower levels than the week’s previous business.  Live deals in Kansas were reported at $105, $2 to $13 lower than the rest of the week’s range, and dressed deals in Iowa and Nebraska were at $170 to $175.  Asking prices were pretty hard to find most of the day.  Light to moderate business has developed every day this week, and the ranges have been wide.  North dressed deals ranged from $173 to $187 and Southern live business has had a full range of $110 to $118.  It’s quite possible there will be some more cleanup deals surface over the balance of the week. 

At the Huss Livestock Market in Nebraska, compared to two weeks ago most weights of steers and heifers sold $2 to $5 higher.  The USDA says demand was good from start to finish.  The market had a nice early summer run of calves, feeder cattle, bred cows, and slaughter cattle.  Receipts are down from the most recent sale and nearly steady on the year.  Feeder supply included 60 percent steers and 83 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 812 to 845 pounds, fleshy, brought $116 to $123 and feeder steers 856 to 880 pounds brought $125.75 to $128.  Medium and Large 1 feeder heifers 763 to 789 pounds brought $122.60 to $128.85 and feeder heifers 812 to 841 pounds brought $115 to $118. 

Boxed beef closed sharply lower on light demand for moderate to heavy offerings.  Choice closed $23.64 lower at $272.26 and Select closed $16.37 lower at $260.41.  The Choice/Select spread is $11.85.  Estimated cattle slaughter is 117,000 head – up 7,000 on the week, but down 5,000 on the year. 

Lean hog futures ended the day mostly higher on support from the sharply higher wholesale values during the session and broader markets.  June lean hogs closed $.22 lower at $48.42 and July lean hogs closed $.10 higher at $54.57. 

Cash hogs closed lower with moderate negotiated numbers.  There is concern demand for pork could be impacted as trade tension with China continues to rise.  There’s also worry about the long-term impact of struggles in the US economy that could hamper domestic pork demand.  Slaughter capacity has been on a steady increase and that’s keeping the industry moving through the heavy supplies of market-ready barrows and gilts.  But, processors are still struggling to move through the backlog of hogs in the supply chain as they try to maximize shackle space and productivity.  Barrows and gilts at the National Daily Direct closed $.82 lower with a base range of $28 to $35.12 for a weighted average of $32.97; the Iowa/Minnesota closed $1.33 lower for a weighted average of $32.66; the Western Corn Belt closed $1.65 lower for a weighted average of $32.66.  The Eastern Corn Belt was not reported due to confidentiality. 

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

Pork values ended the day steady – down $.16 at $95.49.  Butts were sharply lower.  Loins and ribs were weak to lower.  Picnics were firm.  Bellies and hams were higher.  Estimated hog slaughter is 437,000 head – up 15,000 on the week, but down 33,000 on the year.