Market News

Live cattle lower, feeders higher

 

Chicago Mercantile Exchange live cattle futures were lower on long liquidation and demand uncertainties. Contracts did attempt to rally, but were stymied by the midday boxed beef quote and the lack of expected early week packer demand. December was $1.32 lower at $168.62 and February was down $1.80 at $169.05.

Feeder cattle were higher, following through on Monday’s strength. The trade’s keeping an eye on the weather and the potential for another cold snap in the major feeding areas. January was $1.47 higher at $235.55 and March was up $.27 at $233.47.

Direct cattle markets were at a standstill, as is usual for Tuesday. Most packers appear to be short bought and in need of supplies after last week’s light kill, but the showlist does look larger, especially in the South, which may be limiting buying interest. We’ll likely have a better idea Wednesday. Asking prices are holding around $175 Live in the South and $270+ Dressed in the North.

At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, estimate receipts of 5,173 head were down on the week, but up on the year. Feeder steers were unevenly steady and feeder heifers were steady to $2 higher. Cattle quality was called plain to attractive and 53% of the supply weighed more than 600 pounds. 600 to 690 pound feeder steers ranged from $248.50 to $288 and 706 to 797 pound feeder steers sold at $232.50 to $252.50. 400 to 490 pound feeder heifers ranged from $283 to $319 and 500 to 577 pound feeder heifers brought $255 to $274.50.

Boxed beef was lower on light demand and light to moderate offerings. Choice was down $1.12 at $256.36 and Select was $1.68 lower at $243.66. The estimate cattle slaughter of 111,000 head was down 6,000 on the week and 11,000 on the year.

Lean hog futures were mixed following a choppy session. Once again, there was no clear direction with cash and wholesale markets sending conflicting signals. Most contracts remain at a slight premium to the cash index. December was $.62 lower at $89.50 and February was $.07 higher at $89.00.

Cash hog trade was mostly steady to higher, with packer demand at the bulk of the major direct markets improving as the day went on. Market ready numbers continue to look adequate in most areas, with weather not a major factor right now. However, the wholesale market is an issue, up at midday, but down sharply at the close on Tuesday. The average Iowa/Southern Minnesota average weekly hog weight update is out Wednesday morning.

The Eastern Cornbelt was the exception for the major direct markets, down $.64 at $83 to $85.01 for a weighted average of $84.56, while the Western Cornbelt was up $1.52 at $75 to $88 with an average of $86.53 and Iowa/Southern Minnesota was $1.59 higher at $84 to $88 for an average of $86.61. The National Direct market was up $.79 at $75 to $88 with an average of $85.92. Midwest cash markets were steady to $1 higher with tops at $58 to $66. The Missouri Direct base carcass meat price was steady with a top at $79 on light to moderate supply and demand. Missouri sows were steady at $55 to $74. Illinois Direct sows were $1 to $3 lower at $60 to $72.

The pork carcass cutout value closed $1.76 lower at $92.16. Loins were up, while all other primals were down. The estimated hog slaughter of 430,000 head was 4,000 lower than a week ago and 8,000 below a year ago.