Market News

Cattle futures higher watching cash business unfold

At the Chicago Mercantile Exchange, live and feeder cattle were higher, watching widespread direct business develop.  April live cattle closed $1.72 higher at $167.55 and June lives closed $1.35 higher at $161.  April feeders closed $1.70 higher at $199.90 and May feeders closed $1.92 higher at $204.45. 

It was a fairly active day for direct cash cattle business on Thursday.  Live deals in the South were at $167, $4 higher than the previous week’s business.  Dressed deals in Nebraska were at $270, $5 higher than the prior week’s weighted average basis in Nebraska with some live deals reported in the North at $170 to $172.  Look for some clean-up trade to take place Friday.

At the Huss Livestock Market in Nebraska, compared to last week steers were steady to $3 higher and heifers were steady.  The USDA says demand was good for grass cattle, feeders, and on the dispersal of bred cows and cow/calf pairs.  Receipts were down on the week and the year.  Feeder supply included 52% steers and 84% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 812 to 836 pounds brought $189.50 to $192 and feeder steers 877 to 897 pounds brought $188.50 to $190.  Medium and Large 1 feeder heifers 731 to 733 pounds brought $179.75 to $183.50 and feeder heifers 769 pounds brought $187.50. 

Boxed beef closed lower on light demand for light offerings.  Choice was $1.09 lower at $279.20 and Select was $.44 lower at $268.46.  The Choice/Select spread was $10.74. Estimated cattle slaughter was 126,000 head – up 2,000 on the week and 6,000 on the year. 

Lean hog futures were mixed ahead of the USDA’s Quarterly Hogs and Pigs report. April lean hogs closed $.32 lower at $76.45 and May lean hogs closed $.32 higher at $84.75. 

Cash hogs closed firm with a very light negotiated run.  It’s been a lackluster week for cash hog business.  The availability of market-ready hogs is keeping packers in the driver’s seat when it comes to business.  They’ve been able to move their desired numbers without having to get aggressive and bid up.  The latest export sales report was less than steallar.  Demand overall has held relatively strong on the global market and domestically, but concerns continue that any setback to the economy could weaken demand and pressure prices. Barrows and gilts at the National Daily Direct closed $.44 higher with a base range of $68 to $79 and a weighted average of $75.95.  Prices at the regional direct markets were not reported due to confidentiality. 

At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $41 to $54.  Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $58.  Boars ranged from $15 to $25 and $8 to $15.

Pork values closed lower – down $1.47 at $78.79.  Loins, butts, picnics, hams, and bellies were all lower. Ribs were higher. Estimated hog slaughter was 478,000 head – down 12,000 on the week and down 1,000 on the year.