Market News
Cattle futures supported by higher cash business
At the Chicago Mercantile Exchange, live and feeder cattle were supported by the week’s stronger direct cash cattle business. June live cattle closed $2.05 higher at $138.62 and August live cattle closed $1.97 higher at $140.15. May feeder cattle closed $1.70 higher at $162.47 and August feeder cattle closed $2.202 higher at $173.47.
There was a very light, scattered direct cash cattle trade reported on Wednesday’s following Tuesday’s active day. At a Nebraska regional, live deals were marked at $146 and dressed business at $236. Both were well above the week’s previous business and last week’s weighted average basis. A little more trade is likely to develop over the balance of the week. On Tuesday there was a light to moderate trade that took place in the South at $139 to $141, mostly $140, which is $1 higher than last week’s weighted averages. There was also a scattered, light trade reported late in the day in the North at $230 to $232, mostly $230, $4 higher than last week’s weighted average basis in Nebraska. Wednesday’s Fed Cattle Exchange had an offering of 3,052 head with 641 head sold. In Texas, 571 head sold at $135 to $140.25, and in California, 70 head sold at $134.
At the Ozarks Regional Stockyards in Missouri, compared to last week steer and heifer calves were steady to $4 higher with spots of $6 higher. The USDA says demand was good on a light supply. Quality was above average even though the supply was light. Receipts were up slightly on the week, but down on the year. Feeder supply included 42% steers and 34% of the offering was over 600 pounds. Medium and Large 1 feeder steers 501 to 535 pounds brought $196 to $209 and feeder steers 610 to 631 pounds brought $182 to $194.50. Medium and Large 1 feeder heifers 500 to 545 pounds brought $156 to $166 and feeder heifers 603 to 648 pounds brought $152 to $162.
Boxed beef closed lower on light demand for moderate offerings. Choice closed $1.11 lower at $268.82 and Select closed $2.68 lower at $256.53. The Choice/Select spread is $12.29. Estimated cattle slaughter 125,000 head – down 1,000 on the week and up 5,000 on the year.
Lean hog futures ended the day mostly lower on spread trade and long-term demand uncertainties. May lean hogs closed $2.22 lower at $112.47 and June lean hogs closed $2.57 lower at $118.75.
Cash hog closed mixed with a moderate negotiated run. Processors weren’t too aggressive in their procurement efforts on Wednesday and didn’t have to bid up to move desired numbers. The industry is keeping a close eye on the availability of market-ready hogs. Demand for US pork on the global market and domestically has been strong. However, there are long-term concerns and that’s adding pressure to prices. Barrows and gilts at the National Daily Direct closed $.41 higher with a base range of $94 to $111 and a weighted average of $101.98; the Iowa/Minnesota closed $1.04 lower with a weighted average of $107.73; the Western Corn Belt closed $.44 lower with a weighted average of $107.87. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $80.
Pork values closed higher– up $1.37 at $108.49. Picnics, hams, ribs, and bellies were higher to sharply higher. Butts and loins were lower. Estimated hog slaughter 483,000 head – up 5,000 on the week and down 5,000 on the year.
