Cattle futures down ahead of week’s direct business

Market News

Cattle futures down ahead of week’s direct business

Chicago Mercantile Exchange live and feeder cattle were lower, with feeders leading the way down on the higher move in corn. Both were also watching the distribution of this week’s direct show list. June live was down $.77 at $132.82 and August was $.95 lower at $132.90. August feeders were $1.90 lower at $171.97 and September was down $1.75 at $174.55.

Direct cash cattle markets were quiet. The day’s big feature was the distribution of this week’s show list. That show list looks mixed, larger in Kansas, Nebraska, and Colorado, but somewhat smaller in Texas. Last week’s business was mostly at $135 on the live basis and $222 dressed, both about $2 lower than the prior week. Formula totals and trade volume were lower in the major feeding states.

Boxed beef closed higher with light to moderate boxed movement. Choice was up $2.32 at $269.58 and Select was $1.07 higher at $251.09. The estimated cattle slaughter of 125,000 head had no comparison to Memorial Day a week ago and was up 8,000 from a year ago.

At midsession for the Oklahoma National Stockyards feeder cattle auction in Oklahoma City, compared to two weeks ago, feeder steers were $5 to $8 higher with feeder heifers up $6 to $12. Steer calves were $10 to $12 higher and heifer calves were up $2 to $6. The USDA says receipts were down slightly from both the last test and a year ago, with average to attractive quality and very good demand for all classes. Medium and Large 1 feeder steers weighing 600 to 700 pounds brought $160.50 to $182 and 800-to-900-pound steers ranged from $148 to $159.25. Medium and Large 1 feeder heifers weighing 500 to 600 pounds sold at $155 to $176 and 700-to-800-pound heifers were reported at $144 to $156.25.

Lean hog futures were pressured by demand uncertainties and the lower open for the major direct markets. The sharply higher move in pork at midday had no real effect on futures’ price movement. June was down $.97 at $109.22 and July was $1.77 lower at $108.97.

Cash hogs closed steady to higher, with light closing negotiated numbers for the major direct markets. That followed a quiet, lower start for those direct markets and might be a sign that some buyers will need to bid up this week to move the needed numbers.

National Direct barrows and gilts closed $.11 higher with a base price range of $106 to $118 for a weighted average of $112.20, while Iowa/Southern Minnesota was up $1.62 at $116.08 and the Western Corn Belt was $2.15 higher at $115.65. Butcher hogs at the Midwest cash markets were steady at $70. Illinois direct sows were $3 higher at $44 to $56 with moderate demand for moderate to heavy offerings. Barrows and gilts were up $3 at 68 to $77 on light demand for light to moderate offerings. Boars ranged from $10 to $50.

Pork closed $.59 lower at $108.79. Butts, ribs, and bellies were higher, while loins, picnics, and hams were lower. The estimated hog slaughter of 475,000 head had no comparison to last Monday and was 4,000 less than last year.