Market News

Cattle futures higher ahead of cash trade

At the Chicago Mercantile Exchange, live cattle closed higher, and feeder cattle closed mostly higher ahead of widespread direct cash business.  Markets are also looking ahead to Friday’s Cattle on Feed numbers.  April live cattle closed $.22 higher at $120.57 and June live cattle closed $.60 higher at $119.20.  April feeder cattle closed $.15 lower at $137.57 and May feeder cattle closed $.30 higher at $142.77. 

Another sluggish day for direct cash cattle trade activity.  Bids and asking prices have been very elusive.  Showlists this week are mixed and significant trade volume will likely be delayed until midweek or later.  The Texas cash pool reported zero sales with bids ranging from $119 to $120.  Wednesday’s Fed Cattle Exchange has an offering of 4,673 head. 

At the Callaway Livestock Center in Missouri, compared to last week steer calves 450 to 500 pounds were steady to $3 lower, 500-to-550-pound steers were steady to $5 lower, and 550-to-600-pound steers were $4 to $8 lower.  Yearling steers were $3 to $4 lower.  Feeder heifers 400 to 500 pounds were steady to firm, 500 to 600 pounds heifers were $3 to $5 lower with 600 to 740 pounds heifer were mostly steady.  The USDA says demand was moderate to good on a heavy supply.  Receipts were up on the week and the year.  Feeder supply included 59 percent steers and 39 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 557 to 586 pounds brought $162 to $176.25 and feeder steers 704 to 711 pounds brought $149 to $152.25.  Medium and Large 1 feeder heifers 450 to 494 pounds brought $160 to $169 and feeder heifers 707 to 713 pounds brought $140 to $142.50. 

Boxed beef closed higher on good demand for moderate offerings. Choice closed $2.09 higher at $278.26 and Select closed $1.34 higher at $270.47.  The Choice/Select spread is $7.79. Estimated cattle slaughter is 121,000 head – down 5,000 on the week and up 36,000 on the year. 

Lean hog futures ended the day higher, supported by the steady to higher cash business and long-term demand expectations.  May lean hogs closed $2.42 higher at $108.07 and June lean hogs closed $2.02 higher at $106.35. 

Cash hogs closed sharply higher with a moderate negotiated run. Demand strength on both the global market and domestically has been very supportive to prices, that’s expected to continue.  Packers have been aggressive in their procurement efforts recently and have been bidding up to move their desired numbers.  They’re also keeping a close eye on the availability of market-ready barrows and gilts.  And daily slaughter runs remain at relatively high levels. Barrows and gilts at the National Daily Direct closed $1.14 higher with a base range of $101.50 to $110.50 and a weighted average of $106.08; the Iowa/Minnesota closed $1.53 higher with a weighted average of $108.09; the Western Corn Belt closed $1.81 higher with a weighted average of $108.15.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $66.  At Illinois, slaughter sow prices were $2 lower with moderate to good demand for moderate to heavy offerings at $58 to $68.  Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $67 to $75.  Boars ranged from $40 to $45 and $15 to $18. 

Pork values closed $.95 higher at $115.03.  Butts, ribs, hams, and picnics were all higher to sharply higher.  Loins and bellies were lower. Estimated hog slaughter is 485,000 head – up 1,000 on the week and up 125,000 on the year. Monday’s hog slaughter has been revised to 485,000 head.