Market News

Cattle futures lower ahead of Friday’s on feed report

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower to sharply lower on profit-taking ahead of widespread direct business and Friday’s Cattle on Feed report from the USDA.  Boxed beef prices were also sharply lower.  June live cattle closed $.60 lower at $122.50 and August live cattle closed $.30 lower at $122.87.  August feeder cattle closed $2.65 lower at $155.70 and September feeder cattle closed $2.27 lower at $158.07. 

A light direct cash cattle trade developed in the North on Wednesday. Deals in Nebraska were at $197 dressed, $1 higher than last week’s weighted averages.  However, the South remains quiet.   Asking prices were around $125 live in the South and $202 to $204 dressed in the North.  Look for more business to develop over the balance of the week.

At the Ozarks Regional Stockyards in Missouri, compared to last week steer and heifer calves were $3 to $9 higher with spots of $12 higher.  Yearling steers were $3 to $7 higher with spots of $10 higher.  The USDA says demand was good on a heavy supply including several multi pot-load drafts of yearlings.  There was a good crowd on hand and the market was active most of the day.  Receipts were up on the week and the year.  Feeder supply included 54% steers and 60% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 602 to 644 pounds brought $153 to $162.50 and feeder steers 812 to 848 pounds brought $134 to $145.50.  Medium and Large 1 feeder heifers 702 to 739 pounds brought $132.50 to $137 and feeder heifers 779 to 782 pounds brought $134 to $138. 

Boxed beef closed sharply lower with light demand for moderate offerings.  Choice closed $3.70 lower at $312.05 and Select closed $4.34 lower at $275.41.  The Choice/Select spread was $36.64. Estimated cattle slaughter is 117,000 head – down 3,000 on the week and down 1,000 on the year. 

Lean hog futures were pressured by fund selling.  June lean hogs closed $3 lower at $104.52 and August lean hogs closed $2.97 lower at $100.72. 

Cash hogs closed sharply lower with a fairly light negotiated run.  Processors continue to monitor the availability of market-ready barrows and gilts. The industry expects the strong demand for US pork on the global market and domestically to continue and that’s been very supportive to the cash hog market.  However, should a disruption occur, it would likely send prices tumbling.  Hog weights this week dropped to 279.3 pounds, which’s down 2.2 pounds on the week and down 6.3 pounds on the year. Barrows and gilts at the National Daily Direct closed $5.26 lower with a base range of $115 to $137.50 and a weighted average of $122.78.; the Iowa/Minnesota had a weighted average of $126.44; the Western Corn Belt had a weighted average of $125.79; the Eastern Corn Belt had a weighted average of $120.71.   

Butcher hog prices at the Midwest cash markets are $1 higher at $81. At Illinois, slaughter sow prices are steady with good demand for moderate to heavy offerings at $40 to $50.  Barrow and gilt prices were steady with good demand for heavy offerings at $80 to $90.  Boars ranged from $45 to $50 and $12 to $18. 

Pork values closed about steady – down $.01 at $107.82.  Butts and loins were both sharply lower.  Picnics were lower at $.38.  Ribs, hams, and bellies were all sharply higher. Estimated hog slaughter is 476,000 head – down 1,000 on the week and up 5,000 on the year.