Market News

Feeders lead the way down for cattle

At the Chicago Mercantile Exchange live and feeder cattle futures were lower, with feeders leading the way down on the higher corn. Beef export sales were up on the week, but lower than average, with South Korea, Japan, and China the reported buyers. August live was down $.57 at $122.50 and October was $.37 lower at $128.15. August feeder cattle were $1.67 lower at $158.50 and September was down $1.50 at $161.95.

A light trade developed by the end of the day on Thursday. Dressed deals in the North came in at $196, steady with last week. Southern live deals came in at $120, about $1 higher than last week’s weighted averages.

Boxed beef closed higher with good demand for light offerings. Choice closed $2.06 higher at $275.22 and Select closed $.70 higher at $256.82.  The Choice/Select spread is $18.40.  

At the Southern Oklahoma Livestock Auction in Ada, compared to last week, feeder steers sold $4 to $8 higher. Feeder heifers over 450 pounds sold $2 to $4 higher. Feeder heifers over 450 pounds sold $9 to $13 higher. USDA says quality was good and demand was very good. Feeder supply included 34 percent steers and 21 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 593 pounds brought $161 to $172 and feeder steers 650 to 698 pounds brought $147 to $155. Medium and Large 1 feeder heifers 552 to 598 pounds brought $137 to $147 and feeder heifers 609 to 648 pounds brought $138 to $147.50. 

Estimated cattle slaughter is 119,000 head – up 1,000 on the week and even on the year.

Lean hog futures were mixed, mostly modestly higher on spread trade and the recent trend in pork. Hog futures and the pork industry are watching for any new developments tied to the discovery of African swine fever in the Dominican Republic. August was up $.60 at $106.30 and October was down $.55 at $88.97.

Cash hogs closed lower with fairly light negotiated numbers.  The market will be closely watching the development of African Swine Fever in the Dominican Republic. Processors continue to monitor the availability of market-ready barrows and gilts. Overall, the strong demand for US pork on the global market and domestically has been largely supportive to prices.  The industry does expect that to continue.  However, should a disruption occur, it would likely send prices tumbling.

Barrows and gilts at the National Daily Direct closed lower for a weighted average of $102.58; the Iowa/Minnesota closed with a weighted average of $105.09; the Western Corn Belt closed with a weighted average of $104.54.  Prices at the Eastern Corn Belt were not reported due to confidentiality.  

Pork values closed higher – up $1.48 at $125.18.  Hams, bellies, ribs, and loins were higher. Butts and picnics closed lower  

At Illinois, slaughter sow prices were $1 higher with good demand for heavy offerings at $64 to $81.  Barrow and gilt prices were mixed with moderate to good demand for light to moderate offerings at $65 to $75.  Boars ranged from $10 to $50. 

Estimated hog slaughter is 474,000 head – up 5,000 on the week but down 8,000 on the year.