Market News
Cattle futures supported by early cash business
At the Chicago Mercantile Exchange, live cattle were higher and feeders were mostly higher, supported by the strength in cash business and higher boxed beef prices during the session. June live cattle closed $1.50 higher at $136.30 and August live cattle closed $1.02 higher at $137.65. May feeder cattle closed $1.02 higher at $160.92 and August feeder cattle closed $.45 higher at $173.75.
There was a light direct cash cattle trade that developed on Tuesday. Live deals in the South were at $139, $1 higher than last week’s weighted averages. A handful of live deals in Nebraska were at $142, $4 higher than last week’s weighted average basis. Bids in the rest of cattle country were at $223 dressed. Asking prices are at $140 plus live in the South and $224 plus dressed in the North.
At the Callaway Livestock Markets in Missouri, compared to last week there were a lot of new crop steer calves under 600 pounds, those were steady to firm. Steers 600 to 650 pounds were lightly tested and sold with a firm undertone, 650 pounds to 700 pounds were firm to $3 higher. Feeder heifers 400 to 500 pounds were fully steady to firm, heifers 500 to 600 pounds were $3 to $7 higher, and heifers over 600 pounds were lightly tested. The USDA says demand was moderate to good with a moderate supply. The market was active, and the quality was good. Receipts were up on the week and down on the year. Feeder supply included 60% steers and 49% of the offering was over 600 pounds. Medium and Large 1 feeder steers 609 to 648 pounds brought $175.50 to $187.85 and feeder steers 866 pounds brought $156.50. Medium and Large 1 feeder heifers 410 to 448 pounds brought $173 to $181 and feeder heifers 503 to 541 pounds brought $167 to $175.50.
Boxed beef closed higher on strong demand for moderate offerings. Choice closed $1.36 higher at $273.47 and Select closed $.42 higher at $260.71. The Choice/Select spread is $12.76. Estimated cattle slaughter is 125,000 head – even on the week and up 8,000 on the year.
Lean hog futures ended the day higher on expectations of long-term demand strength. May lean hogs closed $3.25 higher at $112.25 and June lean hogs closed $3.45 higher at $118.47.
Cash hogs closed higher with a solid negotiated run. Demand for US pork on the global market and been strong, and that has been helping provide price support. However, there are long-term demand concerns adding pressure to prices. Processors have been moving their desired numbers lately without having to get aggressive in their procurement efforts and bid up. The industry continues to monitor the availability of market-ready hogs. Barrows and gilts closed $1.97 higher with a base range of $95 to $103 and a weighted average of $99.67; the Iowa/Minnesota closed $.07 higher with a weighted average of $102.43; the Western Corn Belt closed $.05 higher with a weighted average of $102.41. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets were steady 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 with moderate demand for moderate offerings at $60 to $69. Boars ranged from $42 to $47 and $20 to $25.
Pork values closed $.16 higher at $106.80. Hams are sharply higher. Ribs and picnics are higher. Butts, loins, and bellies are lower to sharply lower. Estimated hog slaughter is 473,000 head – up 7,000 on the week and down 10,000 on the year.
