Market News

Cattle, hog futures higher at midweek

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, supported by sharply higher boxed beef prices.  Feeder cattle were also oversold and due for a bounce.  June live cattle were up $1.40 at $114.42 and August lives up $1.10 at $117.72.  May feeder cattle closed $1.72 higher at $131.47 and August feeder cattle closed $2.05 higher at $145.22. 

A very light direct cash cattle trade took place on Wednesday.  Live deals in Kansas were at $119, but the rest of cattle country was relatively quiet.  A few bids were restated in Iowa at $119 live and $190 dressed.  Asking prices are at $120 live in the South and $192 dressed in the North.  Look for some scattered trade to develop throughout the rest of the week.  Wednesday’s Fed Cattle Exchange had an offering of 2,153 head with 1,091 head sold from $117.50 to $119.  There was a light to moderate direct cash cattle trade that was reported on Tuesday.  Southern live deals had a range of $117.50 to $119, mostly $118 to $119, which is about steady to $1 higher than last week’s weighted averages.  Southern dressed deals ranged from $187 to $192, mostly $190, full steady with last week’s weighted average basis in Nebraska.

At the Interstate Regional Stockyards in Missouri, compared to the previous week feeder steers under 600 pounds were steady to firm and over 600 pounds were steady to $3 lower.  Feeder heifers under 600 pounds were steady and heifers over 600 pounds were $1 to $3 lower.  The USDA says demand was moderate to good and supply was moderate.  Despite a decline in feeder prices on the board last week, the market reports considerable interest in the lighter cattle on offer.  Receipts were down on the week and the year.  Feeder supply included 60 percent steers and 35 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 555 to 583 pounds brought $148.50 to $175 and feeder steers 605 to 640 pounds brought $145.50 to $148.50.  Medium and Large 1 feeder heifers 354 to 398 pounds brought $146 to $150 and feeder heifers 504 to 538 pounds brought $134 to $141.    

Boxed beef closed sharply higher on good demand for moderate offerings.  Choice closed $3.56 higher at $304.78 and Select closed $2.27 higher at $286.18.  The Choice/Select spread is $18.60.  Estimated cattle slaughter is 120,000 head – even on the week and up 33,000 on the year. 

Lean hog futures ended the day higher supported by higher cash and wholesale business and long-term demand expectations.  May lean hogs closed $.22 higher at $111.37 and June lean hogs closed $.87 higher at $114.42. 

Cash hogs closed higher with a big negotiated run.  Packers continue their aggressive procurement efforts.  They’re also keeping a close eye on the availability of market-ready barrows and gilts.  Ongoing demand strength for US pork on the global market and domestically has been very supportive to prices.  The industry expects that to continue.  Hog weights this week dropped to 285.1 pounds, that’s a pound less than last week and 6.3 pounds below year-ago levels. Barrows and gilts at the National Daily Direct closed $1.73 higher with a base range of $107.04 to $125 and a weighted average of $116.93; the Iowa/Minnesota closed $2.39 higher with a weighted average of $121.66; the Western Corn Belt closed $2.49 higher with a weighted average of $121.21.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market steady at $70. At Illinois, slaughter sow prices were $2 lower with moderate demand for heavy offerings at $52 to $62.  Barrow and gilt prices were firm with good demand for heavy offerings at $69 to $79.  Boars ranged from $40 to $45 and $15 to $20. 

Pork values closed $.73 higher at $111.91.  Bellies, butts, and ribs were all sharply higher.  Hams and loins were higher.  Picnics were sharply lower.   Estimated hog slaughter is 485,000 head – down 2,000 on the week and up 170,000 on the year.

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