Market News

Cattle futures sharply lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were sharply lower with boxed beef lower at midday, watching direct business unfold.  June lives closed $1.90 lower at $175.25 and August lives closed $2.12 lower at $173.37.  May feeders closed $1.95 lower at $244.10 and August feeders closed $3.10 lower at $256.30. 

A light round of direct cattle business took place Wednesday.  Deals in the South were marked at $182 live, fully steady with the previous week’s business.  Asking prices remained firm at $185 to $186 live in the South, with the North still not established.  Look for more business to develop over the balance of the week.

At the Interstate Regional Stockyards in Missouri, feeder steers under 650 pounds were $5 to $10 higher, steers over 650 pounds were steady on a light test.  Feeder heifers under 600 pounds were $5 to $15 higher and heifers over 600 pounds were $2 to $5 higher.  The USDA says demand was very good and supply was moderate.  There was a solid feeder offering this week with several consignments of high-quality calves weighing 400 to 600 pounds.  Receipts were up on the week and the year.  Feeder supply included 46% steers and 37% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 501 to 538 pounds brought $310 to $341, and feeder steers, value-added, 641 pounds brought $288.  Medium and Large 1 feeder heifers 600 to 641 pounds brought $245 to $253 and feeder heifers 751 to 798 pounds brought $207 to $240.   

Boxed beef closed lower on light demand for heavy offerings.  Choice was $1.66 lower at $295.74 and Select closed $2.34 lower at $290.42.  The Choice/Select spread is $5.32. Estimated cattle slaughter was 125,000 head – down 1,000 on the week and up about 1,500 on the year.

Lean hog futures ended the day mixed, mostly lower ahead of the cold storage report.  May lean hogs closed $1.22 lower at $97.35 and June lean hogs closed $.50 lower at $107.45. 

Cash hogs closed mixed with a moderate negotiated run.  Packers have continued to be more aggressive in their procurement efforts as they need hogs to fill the increased slaughter pace.  That’s a good sign that demand for U.S. pork on the global market has remained strong.  Domestic demand has been picking up, too, as summer grilling season is just around the corner.  Both are supportive to prices.  The industry continues to monitor the availability of market-ready hogs and hog weights, which did drop a pound on the week and nearly steady on the year. Barrows and gilts at the National Daily Direct closed $.36 lower with a base range of $85 to $94.50 and a weighted average of $91.49; the Iowa/Minnesota closed $.37 higher with a weighted average of $91.99; the Western Corn Belt closed $.59 higher with a weighted average of $92.33.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $52. At Illinois, slaughter sow prices were $3 lower with moderate demand for moderate offerings at $42 to $54.  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 $.38 at $97.27.  Loins, bellies, picnics, and butts were higher.  Hams were about steady.  Ribs were sharply lower. Estimated hog slaughter was 483,000 head – down 3,000 on the week and up about 11,000 on the year.