Market News
Cattle futures waiting for cash trade to develop
At the Chicago Mercantile Exchange, live cattle were mostly higher waiting for direct business to develop and feeder cattle were mixed adjusting spreads. April live cattle closed $.52 higher at $140.85 and June live cattle closed $1.10 higher at $136.80. April feeder cattle closed $.20 higher at $162.60 and May feeder cattle closed $.15 lower at $167.30.
It was another quiet day for direct cash cattle trade activity. A few early asking prices did surface at $142 live in the South, while the North was quiet. Bids were never established. It’s likely the bulk of the week’s trade will take place at midweek or later.
At the Callaway Livestock Center in Missouri, compared to last week there was a lighter offering, but the market rebounded some. Steers 400 to 500 pounds were mostly steady, steers 500 to 700 pounds were mostly $3 to $7 higher, and steers 750 to 850 pounds were firm to 43 higher. Feeder heifers 400 to 600 pounds were mostly $10 to $20 higher with spots of $25 higher and heifers 600 to 700 pounds sold with a higher undertone. Receipts were down on the week and the year. Feeder supply included 54% steers and 46% of the offering was over 600 pounds. Medium and Large 1 feeder steers 618 to 623 pounds brought $187 to $191 and feeder steers 843 pounds brought $152.75. Medium and Large 1 feeder heifers 517 to 530 pounds brought $168 to $175 and feeder heifers 556 to 580 pounds brought $168.75 to $175.50.
Boxed beef closed mixed with light to moderate demand for moderate offerings. Choice closed $2.39 higher at $257.90 and Select closed $1.10 lower at $248.84. The Choice/Select spread is $9.06. Estimated cattle slaughter is 125,000 head – even on the week and up 4,000 on the year.
Lean hog futures ended the day mixed on spread adjustment. While demand remains strong in the nearby, there are long-term demand concerns. April lean hogs closed $.20 higher at $102.40 and May lean hogs closed $.35 higher at $110.65.
Cash hogs closed sharply higher with a solid negotiated run. Processors have been more aggressive in their procurement efforts recently and have been bidding up to move their desired numbers. Demand for US pork has been strong on the global market, but there are lingering concerns about how long that will last. The industry continues to monitor the availability of market-ready barrows and gilts. Barrows and gilts at the National Daily Direct closed $4.67 higher with a base range of $98 to $114 and a weighted average of $106.87; the Iowa/Minnesota closed $3.94 higher with a weighted average of $112.34; the Western Corn Belt closed $3.59 higher with a weighted average of $111.89. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets were steady at $70. At Illinois slaughter sow, prices were steady with moderate demand for moderate to heavy offerings at $72 to $82. Barrows and gilts were steady with moderate demand for moderate offerings at $63 to $70. Boars ranged from $40 to $45 and $20 to $25.
Pork values closed higher– up $1.29 at $104.48. Hams and ribs both closed sharply higher. Butts were higher. Picnics, loins, and bellies were lower to sharply lower. Estimated hog slaughter is 479,000 head – down 1,000 on the week and down 15,000 on the year. Monday’s hog slaughter has been revised to 466,000 head.
