Market News

Live cattle start the week higher

At the Chicago Mercantile Exchange, live cattle closed higher and feeders were mostly higher ahead of widespread direct cash business.  April live cattle closed $.32 higher at $119.35 and June live cattle closed $1.15 higher at $119.15.  March feeder cattle closed $.75 higher at $135.35 and April feeder cattle closed $.65 higher at $139.67. 

A quiet start to the week for direct cash cattle trade activity.  Showlists are mixed — somewhat larger in Kansas and larger in Texas, but lower in Nebraska/Colorado.  Bids and asking prices have yet to surface.  Look for significant trade volume to be delayed until at least midweek or later. 

At the Oklahoma National Stockyards, compared to last week feeder cattle and calves were mostly steady.  Stocker cattle or cattle suitable for grass were selling $5 to $8 higher.  The USDA says demand was good for all classes as several new buyers were in the stands.  Quality was average to attractive with several coming off of wheat.  Feeder supply included 62 percent steers and 66 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 596 pounds brought $153 to $169.50 and feeder steers 803 to 849 pounds brought $126.50 to $130.50.  Medium and Large 1 feeder heifers 500 to 540 pounds brought $142 to $158 and feeder heifers 604 to 639 pounds brought $131 to $143. 

Boxed beef closed mixed on light to moderate demand for fairly light offerings.  Choice closed $.25 lower at $231.08 and Select closed $2.28 higher at $223.13.  The Choice/Select spread is $7.95. Estimated cattle slaughter is 121,000 – up 1,000 on the week and down 2,000 on the year. 

Lean hog futures were supported by the sharply higher wholesale values during the session, but they were limited by contracts’ premium to the cash index.  April lean hogs closed $.12 higher at $87.30 and May lean hogs closed $.20 higher at $89.67. 

Cash hogs closed sharply higher with a solid negotiated run.  Packers were very aggressive in their procurement efforts Monday afternoon.  The industry, overall, is optimistic about demand for US pork on both the global market and here domestically.  But, heavy supplies are concerning.  The availability of market-ready barrows and gilts is more than ample and daily slaughter totals continue at very high levels, both are adding more pork to the market.  Barrows and gilts at the National Daily Direct closed $3.54 higher with a weighted average of $74 to $89.50 with a weighted average of $84.58; the Iowa/Minnesota closed $.3.89 higher with a weighted average of $88.16; the Western Corn Belt closed $4.26 higher with a weighted average of $88.05.  Prices at regional direct markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $50 and $52.  At Illinois, slaughter sow prices are $1 to $2 higher with very good demand for moderate to heavy offerings at $64 to $78.  Barrows and gilts were weak with good demand for moderate to heavy offerings at $52 to $59.  Boars ranged $25 to $30 and $12 to $15. 

Pork values ended the day weak – down $.21 at $94.93.  Bellies and picnics were sharply lower.  Loins were about steady.  Hams, ribs, and butts were all higher.   Estimated hog slaughter is 494,000 head – up 1,000 on the week and up 4,000 on the year.