Market News

Cattle futures up heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct business.  Feeders had additional support from the lower move in corn. June live cattle closed $.05 higher at $175.37 and August live cattle closed $.75 higher at $173.52.  May feeder cattle closed $2.27 higher at $242.55 and August feeder cattle closed $2.17 higher at $254.30.   

It was another sluggish day for direct cash cattle business.  Bids were few and far between at $180 live in Texas and $290 to $291 dressed in Nebraska.  Asking prices were around $184 to $185 live in the South, and $295 dressed in the North.  Buyers and sellers appear to be in a standoff and significant trade volume looks to be holding out until sometime Friday.

At the Winter Livestock Auction in Kansas, feeder steers under 750 pounds were unevenly steady with heavier weights steady to $3 higher.  Feeder heifers under 650 pounds were $4 to $12 lower and heavier weights were not well tested, but 3 loads of 8-weight heifers sold $3 higher.  The USDA says demand was moderate to good on a light to moderate supply.  Receipts were down on the week and the year.  Feeder supply included 50% steers and 83% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 850 to 899 pounds brought $221 to $233 and feeder steers 956 to 982 pounds brought $205.50 to $224.35.  Medium and Large 1 feeder heifers 755 to 799 pounds brought $205 to $224.50 and feeder heifers 807 to 834 pounds brought $208 to $220.50. 

Boxed beef closed lower on light demand for solid offerings.  Choice was $1.01 lower at $295.80 and Select closed $1.61 lower at $289.27.  The Choice/Select spread is $6.53. Estimated cattle slaughter was 118,000 head – down 6,000 on the week and down about 10,000 on the year.

Lean hog futures ended the day mostly lower on spread trade following the marketing-year low for export sales. May lean hogs closed $.20 lower at $94.72 and June lean hogs closed $.02 lower at $102.70. 

Cash hogs closed higher with a fairly light negotiated run. Export sales for pork hit a marketing-year low, but overall demand for U.S. pork on the global market has been strong. Domestic demand has also been showing some strength. Processors have had to get more aggressive to move the numbers needed to fill demand. The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $.65 higher with a base range of $83 to $92 and a weighted average of $89.78; the Iowa/Minnesota closed $.44 higher with a weighted average of $90.59; the Western Corn Belt closed $.68 higher with a weighted average of $90.09; no comparison at the Eastern Corn Belt but a weighted average of $88.99.

Butcher hog prices at the Midwest cash markets are steady in Wisconsin and Garnavillo, Iowa at $52 and steady in Red Oak, Iowa at $59. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boars ranged from $18 to $28 and $8 to $15.

Pork values closed higher – up $.41 at $99.96.  Bellies were sharply higher, picnics and butts were higher. Hams, ribs, and loins were lower. Estimated hog slaughter was 486,000 head – up 2,000 on the week and up about 7,000 on the year.