Cattle futures decrease as market anticipates direct business opportunities

Cattle futures took a hit at the Chicago Mercantile Exchange as live and feeder cattle prices dropped due to a decrease in boxed beef prices. The market was eagerly awaiting direct business to develop, with June lives closing $1.15 lower at $176.47 and August lives closing $1.30 lower at $174.22. August feeders also saw a decline, closing $2.02 lower at $252.40, while September feeders closed $2.05 lower at $253.40.

Direct cash cattle trade activity remained quiet on Wednesday, with bids slow to surface. Asking prices in the South ranged from $186 to $187, while the North remained quiet. Trade volume is expected to pick up on Thursday or Friday.

Feeder steers under 700 pounds at the Interstate Regional Stockyards in Missouri were steady to $3 higher, while feeder heifers saw mixed prices. Demand was good and supply was moderate, with receipts down on the week and the year.

Boxed beef prices closed sharply lower on light demand, with Choice down $1.82 at $296.67 and Select down $4.09 at $288.25. Lean hog futures, on the other hand, ended mostly higher, supported by stronger pork values during the session.

Cash hog prices closed lower, with the market following the path of least resistance. Demand for U.S. pork remains strong, both globally and domestically, as summer grilling season approaches. Pork values closed higher, with estimated hog slaughter at 477,000 head – down 3,000 on the week and up about 12,000 on the year.