Market News

Feeder cattle higher on the lower move in corn

At the Chicago Mercantile Exchange, live cattle were mostly higher and feeders led the way higher on the sharply lower move in corn.  August lives closed $.40 higher at $132.57 and October lives closed $.12 lower at $138.77.  August feeder cattle closed $2.87 higher at $173.60 and September feeders closed $2.45 higher at $176.22.   

It was a relatively quiet Thursday for direct cash cattle business following a fairly active day on Wednesday. There were a handful of deals reported in Texas at $137 live, about $1 below the recent weighted averages.  The bulk of the week’s business could be wrapped up.  So far this week, Southern live deals have been at mostly $138, about steady to $1 lower than last week’s weighted averages.  Deals in the North have been at mostly $234, not quite $1 lower than last week’s weighted average basis in Nebraska.  Colorado had some live sales around $145, about steady with last week’s business. 

At the Bassett Livestock Auction in Nebraska, no trend is available.  The USDA says demand was very good for the several loads of both fall calves and yearlings.  Receipts were up from the most recent sale.  Feeder supply included 54% steers and 67% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 701 to 742 pounds brought $212 to $217.50 and feeder steers 870 to 891 pounds brought $173.50 to $182.  Medium and Large 1 feeder heifers 657 to 685 pounds brought $176.50 to $191 and feeder heifers 802 to 842 pounds brought $159 to $186.75. 

Boxed beef closed lower on light demand for light offerings.  Choice closed $.88 lower at $264 and Select closed $.24 lower at $240.57.  The Choice/Select spread is $23.42. Estimated cattle slaughter is 124,000 head – up 2,000 on the week and up 7,000 on the year. 

Lean hog futures were pressured by the lower cash and wholesale business.  July lean hogs closed $.27 lower at $109.12 and August lean hogs closed $1.47 lower at $102.10. 

Cash hogs closed lower with a moderate negotiated run.  The industry continues to monitor the availability of market-ready hogs.  Processors were able to move their desired numbers without having to be aggressive in their procurement efforts on Thursday.  While demand has been strong for US pork on the global market, there are long-term concerns and that is putting pressure on prices. Barrows and gilts at the National Daily Direct closed $2.27 lower with a base range of $112 to $126 and a weighted average of $118.91; the Iowa/Minnesota closed $.81 lower with a weighted average of $122.83; the Western Corn Belt closed $.98 lower with a weighted average of $122.45.  Prices at the Eastern Corn Belt were not reported at midday due to confidently. 

Butcher hog prices at the Midwest cash markets are steady at $77. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $40 to $52.  Barrows and gilts were $1 higher with moderate demand for moderate offerings at $74 to $83.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values closed lower – down $1.31 at $107.25.  Picnics, bellies, loins, butts, and hams were all lower.  Ribs were the only primal that was higher. Estimated hog slaughter is 458,000 head – down 7,000 on the week and up 3,000 on the year.