Market News
Live cattle higher to start the week
At the Chicago Mercantile Exchange, live cattle closed higher, supported by higher boxed beef during the session and waiting for direct cash business to develop and feeder cattle were mixed adjusting spreads. June live cattle closed $.97 higher at $134.80 and August live cattle closed $.77 higher $136.62. May feeder cattle closed $.52 higher at $159.90 and August feeder cattle closed $0.25 lower at $173.30.
Direct cash cattle trade activity started the week off quietly. Bids and asking prices have yet to be established. Showlists are mixed – higher in Texas and Kansas, but lower in Nebraska and Colorado. Last week’s early business came as a surprise to many, it remains to be seen if there will be a repeat this week. But it’s more than likely significant trade volume will wait until midweek or later to develop.
At the Oklahoma National Stockyards, compared to last week, feeder steers were $2 to $5 lower and feeder heifers were $2 to $4 lower. Steer and heifer calves were $4 to $7 lower. The USDA says quality was mostly average and demand was moderate to good. Receipts were down on the week and the year. Feeder supply included 59% steers and 69% of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 645 pounds brought $163.50 to $179 and feeder steers 766 to 798 pounds brought $150 to $162. Medium and Large 1 feeder heifers 652 to 697 pounds brought $147 to $159 and feeder heifers 701 to 743 pounds brought $142.50 to $151.50.
Boxed beef closed mixed on light to moderate demand for moderate offerings. Choice closed $1.64 higher at $272.11 and Select closed $.04 lower at $260.29. The Choice/Select spread is $11.82. Estimated cattle slaughter is 124,000 head – up 3,000 on the week and 11,000 on the year. Saturday’s cattle slaughter has been revised to 56,000 head.
Lean hog futures closed higher, supported by sharply higher pork values during the session. May lean hogs closed $0.57 higher at $109 and June lean hogs closed $0.45 lower at $115.02.
Cash hogs closed mixed with a light negotiated run. Processors have been able to move their desired numbers without having to get too aggressive in their procurement efforts. Demand for US pork has been strong on the global market, but there are long-term concerns which have been adding some uncertainty to prices. Barrows and gilts at the National Daily Direct closed $.03 lower with a base range of $96 to $104 and a weighted average of $97.70; both the Iowa/Minnesota and the Western Corn Belt closed $2.08 higher with a weighted average of $102.36. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are higher at $80. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $80 to $92. Barrows and gilts were steady to $3 to $4 lower with moderate demand for moderate offerings at $60 to $69. Boars ranged from $42 to $47 and $20 to $25.
Pork values closed higher – up $3.48 at $106.64. Bellies closed sharply higher. Picnics, harms, ribs, and butts were all higher. Loins were lower. Estimated hog slaughter is 475,000 head – down 2,000 on the week and down 9,000 on the year. Friday’s hog slaughter has been revised to 455,000 head.
