Market News
Cattle futures waiting on direct business to develop
By Filed Under: Closing Futures / Livestock Briefs, Livestock, Livestock Markets, Livestock Markets, Market News
At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were lower, waiting for direct business to develop. Boxed beef was mixed at midday. April live cattle closed $.65 higher at $202.05 and June lives closed $.40 higher at $198.27. April feeder cattle closed $.75 lower at $297.97 and May feeder cattle closed $.35 lower at $281.52.
Direct cash cattle trade activity was relatively quiet Thursday. The lone bid that surfaced was at $315 dressed in Nebraska. Asking prices were around $202 to $204 live in the South. Look for the bulk of the week’s business to take place before the end of the day Friday.
At the Winter Livestock Auction in Kansas, feeder steers over 550 pounds were steady to $10 higher. Heifers over 650 pounds were steady to $10 higher. Steers under 550 pounds and heifers under 650 pounds were firmly steady. The USDA says supply was heavy with good demand. Receipts were up on the week and the year. Feeder supply included 47% steers and 81% of the offering was over 600 pounds. Medium and Large 1 feeder steers 620 to 638 pounds brought $340 to $354 and feeder steers 853 to 899 pounds brought $262 to $271.35. Medium and Large 1 feeder heifers 607 to 647 pounds brought $285 to $307 and feeder heifers 700 to 745 pounds brought $257 to $274.
Boxed beef closed lower with light demand for heavy offerings. Choice was $1.41 lower at $319.69 and Select closed $.06 lower at $307.47. The Choice/Select spread is $12.22. Estimated cattle slaughter was 121,000 head – down 1,000 on the week and down about 1,000 on the year.
Lean hog futures closed lower, with uncertainties about long-term domestic demand and the week’s marketing-year low for pork exports sale. April lean hogs closed $.87 lower at $85.62 and May lean hogs closed $1.65 lower at $88.80.
Cash hogs closed lower with a fairly light negotiated run. Export sales hit a marketing-year low this past week. That brings into question the ability for demand to hold on long-term, especially as the tariff and retaliatory tariff conversations continue. Strong global demand for U.S. pork has been helping provide price support, while domestic demand has struggled with consistency. The pull-back in business isn’t a big surprise. Processors were aggressive in their procurement efforts early in the week and they could have needed numbers on hand. The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $2.49 lower with a base range of $86 to $94 and a weighted average of $89.15; the Iowa/Minnesota closed $2.36 lower with a weighted average of $89.53; the Western Corn Belt closed $2.35 lower with a weighted average of $89.53; no comparison at the Eastern Corn Belt but a weighted average of $88.40.
Butcher hog prices at the Midwest cash markets were steady at $60.
Pork values closed higher – up $2.71 at $97.29. Bellies were sharply higher, closing more than $10 higher. Hams were also sharply higher. Picnics, butts, and loins were up. Ribs were lower. Estimated hog slaughter was 489,000 head – up 4,000 on the week and up about 18,000 on the year.
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