Market News
Live cattle futures mixed to start the week
At the Chicago Mercantile Exchange, live cattle were mixed ahead of widespread cash trade and Friday’s on Feed numbers. Feeder cattle were pressured by the higher move in corn. April live cattle closed $.45 lower at $140.05 and June live cattle closed $.72 lower at $136.35. April feeder cattle closed $1.12 lower at $161.20 and May feeder cattle closed $1.70 lower at $165.75.
Direct cash cattle trade activity was quiet to start the week. Bids and asking prices were scarce. Showlists this week are mixed – higher in Kansas, but lower in Texas and Nebraska/Colorado. The bulk of the week’s business will likely develop sometime midweek or later, especially with the next Cattle on Feed report coming out on Friday.
At midsession, at the Oklahoma National Stockyards, compared to last week feeder steers were steady to $3 higher. Feeder heifers were unevenly steady. Steer and heifer calves were lightly tested and unevenly steady. The USDA says demand was moderate to good. Receipts were down on the week and the year. Feeder supply included 64% steers and 56% of the offering was over 600 pounds. Medium and Large 1 feeder steers 503 to 545 pounds brought $190 to $208.50 and feeder steers 759 to 796 pounds brought $147 to $155. Medium and Large 1 feeder heifers 554 to 596 pounds brought $158.25 to $165 and feeder heifers 708 to 743 pounds brought $140 to $145.
Boxed beef closed higher on solid demand for light offerings. Choice is $.34 higher at $258.50 and Select is $1.85 higher at $252.50. The Choice/Select spread is $6. Estimated cattle slaughter is 119,000 head – down 6,000 on the week and up 3,000 on the year.
Lean hog futures were supported by demand expectations. April lean hogs closed $1.22 higher at $100.62 and May lean hogs closed $3.97 higher at $111.07.
Cash hogs closed with a moderate negotiated run. Processors were able to move their desired numbers without having to aggressively bid up. Demand for US pork on the global market and domestically has been strong. And while that’s expected to continue in the near term, the uncertainty for further out demand does bring added volatility to the market. The industry is also monitoring the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $1.61 lower with a base range of $98 to $111 and weighted average of $102.09; the Iowa/Minnesota closed $.93 higher with a weighted average of $109.49; the Western Corn Belt closed $2.76 higher with a weighted average of $109.49. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $68. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $74 to $84. Barrows and gilts were steady with moderate demand for moderate to heavy offerings at $66 to $73. Boars ranged from $40 to $45 and $20 to $25.
Pork values closed lower – down $3.34 at $101.61. Hams and bellies were both sharply lower. Butts and loins were lower. Picnics were weak. Ribs closed higher. Estimated hog slaughter is 478,000 head – up 12,000 on the week and down 6,000 on the year. Friday’s hog slaughter has been revised to 470,000 head.
