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Demand concerns send livestock futures lower

cattle grazing-southwest iowa

Chicago Mercantile Exchange live cattle futures were sharply lower, pressured by long liquidation and demand concerns. December was $1.77 lower at $166.85 and February was down $1.92 at $167.12.

Feeder cattle were lower on the slow beef demand. Still, contracts did finish well above the session’s lows. January was $.72 lower at $234.82 and March was down $1.57 at $231.90.

Direct cash cattle markets remained pretty quiet with limited business in the North, but packer inquiry is starting to improve. Still, widespread business may wait until Thursday or Friday. Packers do appear to be short bought after last week’s trade activity, but margins aren’t good and boxed beef is struggling, moving downward in low volume. Asking prices are holding around $175 Live in the South and $270+ Dressed in the North. There are a few bids on the Live basis at $166 in Kansas and Nebraska. What trade we have seen is very light at $265 Dressed in Nebraska, down $1 to $2 from last week’s weighted average.

At the West Plains-Ozarks Regional Stockyards Feeder Auction Wednesday, estimated receipts of 2,763 head were up sharply from a week ago, but well below a year ago. Feeder steers and heifers were $5 to $9 higher with demand called very good on moderate supply, 53% of which was heifers. 500 to 600 pound feeder steers sold at $267 to $310 and 600 to 700 pound steers sold at $247 to $273. 500 to 600 pound feeder heifers brought $235 to $267.50 and 600 to 700 pound heifers ranged from $230 to $250.

Boxed beef was mixed on light to moderate demand and moderate to heavy offerings. Choice was up $.05 at $256.41 and Select was down $1.88 at $241.78. The estimated cattle slaughter of 106,000 head was 9,000 less than last week and 16,000 below last year.

Lean hog futures were sharply lower, ending the session right around the day’s lows. Hogs are also concerned about demand and are keeping an eye the rising hog weights. December was $1.45 lower at $88.05 and down $2.12 at $86.87.

Cash hog trade was mostly steady to lower. Here at midweek, it looks like market ready numbers are a little tighter than expected, cancelling out part of the impact of the recent wholesale losses. Processing margins are poorer than usual for this time of year. The average Iowa/Southern Minnesota hog weight for the week ending November 29 was 285.4 pounds, up 1.4 pounds on the week and 3.7 pounds on the year.

The National Direct trade closed $.47 lower with a base price range of $81.00 to $87.00 for a weighted average of $85.43, the Western Cornbelt was down $.72 at $81.00 to $87.00 with a weighted average of $85.78, and Iowa/Southern Minnesota was down $.72 at $81.00 to $87.00 for a weighted average of $85.86. Midwest cash hogs were steady with tops at $58 to $66. Missouri Direct butcher trade was steady to $1 higher at $79 to $80 on light to moderate supply and demand. Missouri sows were $2 lower to $3 higher at $58 to $72. Illinois sows were down $1 at $59 to $72.

The pork cutout was down $.20 at $91.96. Picnics, ribs, and bellies were higher, all other cuts were weak to lower. The estimated hog slaughter of 428,000 head was up 9,000 on the week, but down 7,000 on the year.

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