Market News

Cattle futures higher on follow-through buying

At the Chicago Mercantile Exchange, live and feeder cattle futures were supported by follow-through and technical buying.  August live cattle closed $2.10 higher at $99.30 and October live cattle are $2 higher at $102.67.  August feeder cattle closed $1.80 higher at $134.87 and September feeder cattle closed $1.82 higher at $135.85.   

Another round of light direct cash cattle trade took place on Thursday.  Deals were generally steady with the bulk of the week’s business.  For the week, Southern live trade had a full range of $91 to $96, mostly $94 to $95, while Northern dressed business ranged from $148 to $155, mostly $153 to $155. 

At the OKC West Livestock Auction, compared to last week feeder steers 600 to 750 pounds were steady to $4 higher and over 750 pounds were steady to $2 lower.  Feeder heifers were $1 to $3 lower.  The USDA says demand was moderate to good for feeder cattle.  Steer calves were steady to $3 higher and heifer calves were $3 to $8 higher.  Demand was very good for all calves.  Quality was plain through attractive.  Receipts were up from the most recent sale.  Feeder supply included 62 percent steers and 85 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 663 to 696 pounds brought $137 to $145 and feeder heifers 770 to 798 pounds brought $127 to $135.50.  Medium and Large 1 feeder heifers 651 to 697 pounds brought $124 to $133 and feeder heifers 700 to 748 pounds brought $118 to $127.50. 

Boxed beef closed steady to firm on moderate demand for moderate offerings.  Choice closed $.06 higher at $205.44 and Select closed $.33 higher at $198.76.  The Choice/Select spread is $6.68.   Estimated cattle slaughter is 121,000 head – up 1,000 on the week. 

Lean hog futures closed mostly higher on spread trade and the sharply higher wholesale values during the session.  July lean hogs closed $.07 lower at $44.72 and August lean hogs closed $.12 higher at $49.20. 

Cash hogs closed steady to weak with moderate negotiated numbers.  It was a good week for demand news.  The Weekly Export Sales report showed some promise and the monthly Jobs Report showed some strength.  Both are very good news as it relates to both global and domestic demand for US pork.  This is needed as supplies of market-ready barrows and gilts are heavy and packers are pushing slaughter totals higher every day.  While that keeps the supply chain moving, it also is adding more pork to the market.  Barrows and gilts at the National Daily Direct were $.07 lower with a base range of $24 to $30.13 for a weighted average of $28.61; the Iowa/Minnesota closed $.78 lower for a weighted average of $27.65;  the Western Corn Belt closed $.60 lower for a weighted average of $27.83.  The Eastern Corn Belt was not reported due to confidentiality. 

At Illinois, slaughter sow prices were steady with light to moderate demand for moderate offerings at $9 to $20.  Barrow and gilt prices were steady with light to moderate demand for moderate to heavy offerings at $12 to $20.  Boars ranged from $2 to $5. 

Pork values closed higher – up $2.84 at $66.46.  Loins were sharply higher.  Hams, picnics, and bellies were all higher.  Butts and ribs were lower to sharply lower.  Estimated hog slaughter is 461,000 head – down 11,000 on the week.