Cattle futures rebound
Chicago Mercantile Exchange live and feeder cattle futures were up on oversold signals, getting ready for this week’s widespread direct cash business. Those oversold signals helped feeders shrug off the bearish influence of the higher move in corn. June live was up $.90 at $133.72 and August was $1.22 higher at $134.12. August feeders were $.47 higher at $172.45 and September was up $.20 at $174.75.
Direct cash cattle markets were quiet. Asking prices were $137 to $138 on the live basis, with nothing reported yet for dressed. There was very light trade at $141 live, steady with Monday, but really not enough to establish a trend. This week’s show list looks mixed, larger in Kansas, Colorado, and Nebraska, smaller in Texas. Last week’s trade was generally $2 lower than the week before that, for both live and dressed cattle.
Beef closed mixed with heavy movement. Choice was up $1.84 at $271.42 and Select was down $1.53 at $249.56. The estimated cattle slaughter of 126,000 head was unchanged on the week and up 5,000 on the year.
At the OKC West Livestock Auction feeder cattle sale in El Reno, Oklahoma, compared to last week, steer and heifer calves were $8 to $12 higher. The USDA says demand was good to very good and heavy rain across the state has helped improve demand for grazing cattle. 89% of the run weighed less than 600 pounds and 54% of the feeder offering were steers. Medium and Large 1 feeder steers weighing 500 to 600 pounds ranged from $185 to $203 and Medium and Large 1 to 2 steers weighing 550 to 650 pounds sold at $169 to $181. Medium and Large 1 feeder heifers weighing 450 to 550 pounds brought $165 to $184 and Medium and Large 1 to 2 heifers weighing 500 to 600 pounds were reported at $145 to $156.
Lean hog futures were mostly higher on spread trade and the steady to higher cash during the session. It’s still early in the week, but traders do seem optimistic about this week’s cash business. June was down $.80 at $108.42 and July was up $.30 at $109.27.
Cash hogs were steady to higher with strong negotiated movement for the major direct markets. Many buyers issued higher bids, following through on Monday’s firm to higher finish with very light negotiated sales. Tuesday’s negotiated movement was substantially larger than Monday.
National direct barrows and gilts closed $4.65 higher with a base price range $104 to $120.50 with a weighted average of $116.85, while Iowa/Southern Minnesota was up $2.64 at $118.72 and the Western Corn Belt was $3.10 higher at $118.75. Butcher hogs at the Midwest cash markets were steady at $70. Illinois direct sows were steady at $44 to $56.
Pork closed $.96 lower at $107.83. Loins, picnics, ribs, and hams were lower. Butts and bellies were higher. The estimated hog slaughter of 479,000 head was 12,000 more than last week, but 4,000 less than last year.