Market News

Cattle futures higher on oversold signals

At the Chicago Mercantile Exchange, live and feeder cattle closed higher, supported by commercial buying and the stronger wholesale values during the session.  August live cattle are $2.50 higher at $101.30 and October live cattle are $1.45 higher at $104.55.  August feeder cattle closed $2.70 higher at $139.42 and September feeder cattle closed $2.07 higher at $139.55. 

A light to moderate direct cash cattle trade took place on Wednesday.  In Nebraska, dressed deals were at $157, fully steady with last week’s weighted average basis, and $96 live in the western part of the state, which was also nearly steady.  There was another round of light trade in the South with deals ranging from $95 to $95.75 in Kansas and $95 in Texas.  Asking prices held firm at $100 live in the South and $160 dressed. 

At the Hub City Livestock Auction in South Dakota, compared to last week there were just a few comparable sales.  The best test on steers 850 to 950 pounds were $1 to $3 higher.  Heifers were not well tested today for comparison.  Demand was good for the offering of mostly steers sold in a long-string and a handful of loads.  A few packages were offered, which included quite a few fall calves and all were met with very good demand.  Quality was mostly average to attractive and the market was moderate to active.  Receipts were down on the week and the year.  Feeder supply included 90 percent steers and 92 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 852 to 894 pounds brought $129 to $138 and feeder steers 900 to 927 pounds brought $126.50 to $134.50.  Medium and Large 1 feeder heifers 839 to 843 pounds brought $119.75 to $123.50. 

Boxed beef closed steady to firm with moderate demand on moderate offerings.  Choice closed $.16 lower at $200.76 and Select closed $.52 higher at $191.37.  The Choice/Select spread is $9.72.  Estimated cattle slaughter is 119,000 head – down 1,000 on the week and down 3,000 on the year. 

Lean hog futures closed mostly lower on spread trade and concerns about long-term demand certainty.  July lean hogs closed $.52 higher at $47.32 August lean hogs closed $.22 higher at $50.15. 

Cash hogs closed firm with solid negotiated numbers. The supply situation is very heavy right now with ample supplies of market-ready hogs and an industry that’s still trying to work through the backlog of hogs in the supply chain.  There are serious concerns about the demand picture as trade tensions with China are ongoing.  Domestic demand needs to remain strong to improve the price picture. Barrows and gilts at the National Daily Direct closed $.38 higher with a base range of $28 to $35 for a weighted average of $31.40; the Iowa/Minnesota is $.67 higher for a weighted average of $31.85; the Western Corn Belt is $.67 higher for a weighted average of $31.85.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $20 in Dorchester, Wisconsin and Garnavillo, Iowa and $18 to $20 in Red Oak, Iowa.  At Illinois, slaughter sow prices were weak with good demand for heavy offerings at $9 to $20.  Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $14 to $22.  Boars ranged from $1 to $3. 

Pork values closed higher – up $2.71 at $68.95.  Hams were sharply higher. Picnics and bellies were also higher.  Ribs, loins, and butts were lower to sharply lower.  Estimated hog slaughter is 470,000 head – up 3,000 on the week and up 7,000 on the year.