Cattle futures higher ahead of Friday’s On Feed report

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Cattle futures higher ahead of Friday’s On Feed report

At the Chicago Mercantile Exchange, live and feeder cattle closed higher ahead of Friday’s Cattle on Feed report and support from the higher boxed beef prices at midday.  Feeder cattle had additional support from the day’s lower move in corn.  October live cattle closed $.87 higher at $108.02 and December live cattle closed $1.07 higher at $112.27.  September feeder cattle closed $.45 higher at $142.45 and October feeders closed $.75 higher at $142.27. 

It took a little longer for direct cash cattle trade activity to develop, but it looks to be worth the wait.  A light to moderate trade has been reported in all areas with live deals at $105, that’s roughly $2 higher than last week’s weighted averages.  Dressed deals in the North are at $165, also $2 higher than last week’s weighted average basis in Nebraska.  Look for the week’s business to finish up sometime on Friday.

At the Mitchell Livestock Auction in South Dakota, compared to last week there was a steady undertone on steers up to 1000 pounds.  Steers 1000 to 1150 pounds were $5 to $6 higher.  There was also a steady to higher undertone noted on heifers up to 850 pounds and heifers 850 to 900 pounds were steady.  Receipts were down on the week and up on the year.  Feeder supply included 54 percent steers and 99 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 724 to 734 pounds brought $145 to $155.85 and feeder steers 852 to 882 pounds brought $132.50 to $139.75.  Medium and Large 1 feeder heifers 869 to 899 pounds brought $123.25 to $129.25 and feeder heifers 863 to 899 pounds brought $122.25 to $123.    

Boxed beef closed steady to firm on good demand for moderate offerings.  Choice is $1.61 higher at $217.48 and Select closed $.14 higher at $207.74.  The Choice/Select spread is $9.741

Estimated cattle slaughter is 121,000 head – up 2,000 on the week and 3,000 on the year. 

Lean hog futures closed lower ahead of the USDA’s

October lean hogs closed $.02 lower at $69.47 and December lean hogs closed $1.07 lower at $63.27. 

Cash hogs closed mixed with a fairly light negotiated run.  Packers took a little breather on Thursday following big runs almost every day this week.  The industry continues to keep a close eye on the supply and demand relationship.  There’s optimism demand for US pork will see a big boost on the global market and the would help provide long-term price support.  But supplies of market-ready barrows and gilts are more than ample and daily slaughter totals continue to push higher.  That’s helping processors work through the backlog of hogs in the production system, but it’s also adding more pork to an already saturated market. 

Barrows and gilts at the National Daily Direct closed $.36 higher with a base range of $60 to $68 for a weighted average of $64.71; the Iowa/Minnesota closed $.84 lower for a weighted average of $63.39; the Western Corn Belt closed $.92 lower for a weighted average of $63.31; the Eastern Corn Belt had no comparison but a weighted average of $65.10.    

Butcher hog prices at the Midwest cash markets are steady at $28. 

At Illinois, slaughter sow prices were steady with good demand for light to moderate offerings at $19 to $23.  Barrows and gilts were $1 higher with good demand for moderate to heavy offerings at $40 to $45.  Boars ranged from $1 to $3. 

Pork values closed sharply higher – up $3.06 at $92.03.  Hams jumped nearly $8.  The rest of the primals were higher to sharply higher. 

Estimated hog slaughter is 485,000 head – up 15,000 on the week and even on the year. 

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