Cattle futures higher heading into midweek

Market News

Cattle futures higher heading into midweek

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, watching direct business develop. August live cattle closed $1.92 higher at $121.75 and October live cattle closed $1.37 higher at $127.17.  August feeder cattle closed $.67 higher at $158.82 and September feeder cattle closed $.62 higher at $161.62.   

A light to moderate direct cash cattle trade took place on Tuesday.  Deals in the South were at $119 to $120 live, fully steady with last week’s business.  The North was quiet. Asking prices were at $122 live in the South and $202 dressed in the North.  Look for more business to pick up as the week progresses. 

At the Joplin Regional Stockyards in Missouri, compared to two weeks ago, feeder steers were $2 to $5 higher with the most gains on weights over 700 pounds.  Feeder heifers under 600 pounds were steady and heifers over 600 pounds were $2 to $4 higher.  The USDA says supply was moderate with good to very good demand.  Receipts were down from two weeks ago and up on the year.  Feeder supply included 56% steers and 58% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 651 to 696 pounds brought $157 to $171 and feeder steers 869 to 885 pounds brought $145 to $148.25.  Medium and Large 1 feeder heifers 550 to 595 pounds brought $142 to $157 and feeder heifers 600 to 647 pounds brought $141.50 to $156. 

Boxed beef closed lower on light demand for heavy offerings.  Choice closed $1.66 lower at $273.34 and Select closed $2.03 lower at $256.74.  The Choice/Select spread is $16.60. Estimated cattle slaughter 121,000, up 2,000 on the week and up 4,000 on the year.

Lean hog futures ended the day mostly higher on position squaring relative to the cash index.  July lean hogs closed $.22 lower at $112.25 and August lean hogs closed $1.85 higher at $105.92. 

Cash hogs closed sharply higher with a solid negotiated run.  Processors continue to monitor the availability of market-ready barrows and gilts and bid up to move their desired numbers on Tuesday.  Strong demand for US pork on the global market and domestically have been supportive to prices recently.  The industry expects that to continue.  However, should a disruption occur, it would likely send prices tumbling.  Barrows and gilts at the National Daily Direct closed $4.56 higher with a base range of $106 to $117 and a weighted average of $112.30.  The Iowa/Minnesota has a weighted average of $116.11 and the Western Corn Belt had a weighted average of $116.04.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market are steady at $75. 

Pork values closed higher – up $1.08 at $118.81.  Loins, ribs, and butts were all sharply higher.  Bellies were weak. Picnics and hams were lower to sharply lower. Estimated hog slaughter 464,000 head – down 2,000 on the week and down 5,000 on the year.  Monday’s hog slaughter has been revised to 449,000 head. 

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