Market News
Cattle futures lower ahead of Friday’s On Feed numbers
At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower ahead of this week’s USDA reports, despite the sharply higher cash trade. June live cattle closed $.37 lower at $98.40 and August live cattle closed $1.45 lower at $97.62. May feeder cattle closed $1.42 lower at $126 and August feeder cattle closed $2.92 lower at $129.
A light to moderate direct cash cattle trade has developed across cattle country. Live deals in the South are at $120, $10 higher than last week’s weighted averages basis in Texas. Northern dressed business was mostly is at $190, $11 higher than last week’s weighted average basis in Nebraska. Asking prices remain at $120 plus live in the South and $190 to $195 dressed in the North.
At the Interstate Regional Stockyards in Missouri, compared to last Tuesday, feeder steers and heifers steady to $4 higher. The USDA says demand is good and supply is moderate. The feeder offering was mainly fall calves weighing 650 pounds and less with some high-quality consignments in the mix. Receipts were up on the week and the year. Feeder supply included 56 percent steers and 29 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 553 to 597 pounds brought $152 to $163.25 and feeder steers 600 to 633 pounds brought $144.50 to $157.50. Medium and Large 1 feeder heifers 550 to 570 pounds brought $127.50 to $141.
Boxed beef cutout values ended the day mixed on moderate demand for moderate to heavy offerings. Choice closed $5.43 lower at $404.04 and Select closed $2.31 higher up $391.18. The Choice/Select spread is $12.86. Estimated cattle slaughter is 101,000 head – up 10,000 on the week, but still down 20,000 on the year. This is the first time since April 8th that cattle slaughter totals are over 100,000 head.
Lean hog futures ended the day mixed on spread trade ahead of the latest Cold Storage and Livestock Slaughter reports. June lean hogs closed $.22 higher at $56.87 and July lean hogs closed $.47 lower at $55.80.
Cash hogs ended the day steady to weak with moderate negotiated purchases. Slaughter capacity continues to creep up relieving some of the pressure on the supply chain. But with estimates of approximately 2-million-head backed up to the producer level, it could take some time to work through the backlog. Processors continue to balance the heavy supplies of market-ready barrows and gilts with available shackle space and the available workforce. Demand remains a bright spot for the industry and all eyes will be on Thursday’s round of USDA reports and the latest Export Sales numbers. Barrows and gilts at the National Daily Direct closed $.41 lower with a base range of $33 to $42.50 for a weighted average of $37.91; the Iowa/Minnesota closed $.30 lower for a weighted average of $39.69; the Western Corn Belt closed $.02 lower for a weighted average of $39.43. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hogs at the Midwest cash markets are steady at $20. At Illinois, slaughter sow prices were steady at $7 to $20 with moderate to good demand for moderate to heavy offerings. Barrow and gilt prices were steady with moderate demand for heavy offerings at $16 to $20. Boars ranged from $1 to $5.
Pork values closed higher – up $2.22 at $99.92. Hams closed nearly $19 higher. Ribs, loins, and butts were all higher. Picnics and bellies closed sharply lower. Estimated hog slaughter is 397,000 head – up 18,000 on the week, but still down 71,000 on the year.
