Market News
Cattle futures pressured on Thursday
At the Chicago Mercantile Exchange, live cattle were mostly lower and feeder cattle were lower on profit-taking, watching corn, and waiting for any clean-up trade to trickle in. June live cattle closed $0.45 lower at $136.42 and August live cattle closed $.32 lower at $138.32. May feeder cattle closed $.17 lower at $161.77 and August feeder cattle closed $.07 lower at $174.35.
A quiet Thursday for direct cash cattle trade. It’s likely the bulk of the week’s business has wrapped up. Asking prices for cattle left on showlists are around $140-plus in Kansas and Texas and $230 dressed in Iowa and Nebraska. Dressed deals for this week were at $224 to $231, mostly $225 to $226, $2 to $3 higher than last week’s weighted average basis in Nebraska. Live deals were marked at mostly $139, $1 higher than last week’s weighted averages. There was a special Fed Cattle Exchange on Thursday with 3,258 head offered and 515 sold at $144 to $144.25 in Nebraska and $133 in California.
At the Winter Livestock Auction in Kansas, compared to last week yearling steers and heifers 600 to 800 pounds were $4 to $6 higher. Feeder steers and heifers 800 to 950 pounds were steady to $2 higher. Lightweight steer and heifer calves weren’t well compared, but a lower trend was noted. The USDA says demand was good. Receipts were down on the week and the year. Feder supply included 44% steers and 82% of the offering was over 600 pounds. Medium and Large 1 feeder steers 860 to 886 pounds brought $148.25 to $151.75 and feeder steers 921 to 944 pounds brought $142 to $147.75. Medium and Large 1 feeder heifers 762 to 795 pounds brought $138.50 to $147.50 and feeder heifers 855 to 875 pounds brought $134 to $137.25.
Boxed beef closed mixed on light to moderate demand for light offerings. Choice closed $.50 lower at $271.86 and Select closed $.34 higher at $259.71. The Choice/Select spread is $12.15. Estimated cattle slaughter 123,000 head – down 1,000 on the week and down 10,000 on the year.
Lean hog futures were mostly higher, adjusting spreads. There is some long-term optimism that demand will remain strong with tighter supplies. May lean hogs closed $1.22 higher at $112.75 and June lean hogs closed $.87 higher at $118.47.
Cash hogs closed lower with a fairly light negotiated run. Demand for US pork on the global market has been strong and that’s helped provide some price support. However, there are long-term demand concerns creeping in and that has created some uncertainty around prices. Processors have been moving their desired numbers this week without having to get too aggressive in their procurement efforts. And the industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.06 lower with a base range of $94 to $104 with a weighted average of $97.73; the Iowa/Minnesota closed $.91 lower with a weighted average of $99.67; the Western Corn Belt closed $1.16 lower with a weighted average of $99.71. Prices at the Eastern Corn Belt were not reported due to confidentiality.
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 firm – up $.37 at $108.90. Bellies, picnics, butts, and loins were all higher. Ribs and hams were sharply lower. Estimated hog slaughter is 478,000 head – up 12,000 on the week and up 4,000 on the year.
