Cattle futures see more gains ahead of week's direct trade

Chicago Mercantile Exchange live and feeder cattle futures closed higher, supported by the tight market ready numbers, getting ready for the week’s direct cash business. Contracts did close below the session highs due to modest midday losses in beef and overbought signals. April live was up $.17 at $241.80 and June was $.60 higher at $237.22. March feeders were $2.15 higher at $370.07 and April was up $1.62 at $367.50.

Direct cattle markets were quiet. There were no bids, no asking prices, and it looks like widespread trade will wait until Thursday or even Friday. Market ready numbers continue to be tight and are expected to stay that way over the near term, with limited signs of herd expansion. This week’s showlist looks at least somewhat smaller than last week in all of the major feeding areas.

At the Bassett Livestock Auction feeder cattle sale in Nebraska, compared to previous test, 550-pound steers were $4 higher and 700-to-750-pound steers were up $11. 500-to-650-pound heifers were unevenly steady. The USDA says demand was very good with several buyers in attendance and active bidding on the internet, with receipts below last week and last year. 59% of the offering were feeder steers and 64% of all feeders weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds sold at $421 to $473 and 700-to-800-pound steers ranged from $379 to $438. Medium and Large 1 feeder heifers weighing 550 to 650 pounds brought $395 to $445 and 650-to-700-pound heifers were reported at $376 to $400.

Boxed beef closed sharply lower with moderate movement. Choice was down $2.69 at $368.02 and Select beef was $5.14 lower at $362.09. The estimated cattle slaughter of 113,000 head was up 1,000 on the week, but down 7,676 on the year.

Lean hog futures were mostly lower on spread trade, profit taking, and a big midday drop in pork, led by the belly primal. The trade will be watching Thursday’s USDA export sales numbers very closely after last week’s large sales. April was up $.30 at $98.45 and June was down $.30 at $110.57.