Market News

Cattle futures supported by wholesale values

At the Chicago Mercantile Exchange, cattle futures rebounded nicely.  Today’s move was likely due to oversold conditions and light trade volume enhanced the position.  The higher trade was also supported by the strong move in wholesale value at midday.  December live cattle closed $.87 higher at $117.97 and February live cattle closed $1.02 higher at $124.05.  January feeder cattle closed $2.07 higher at $151.62 and March feeder cattle closed $1.77 higher at $149.82.

Direct cash cattle trade picked up this afternoon – following moderate trade activity in the South this morning.  Live sales were around $1.00 lower than last week with some instances of sales at $120 in South Dakota and Nebraska.  It looks like trade in the South has wrapped up for the week.  Northern trade may not finish until sometime on Wednesday.  Showlists are priced around $119-$120 live and $190 dressed.  Bids range from $118 to $120.50 live to $188 dressed.

Boxed beef closed sharply higher on Choice and firm on Select on light to moderate demand and heavy offerings.  Select chuck and round cuts were firm to higher and Choice rib cuts were sharply higher.  Choice closed $2.45 higher at $208.63 and Select closed $.60 higher at $188.65.  The Choice/Select spread closed at $19.98.

At the Callaway Livestock Center in Missouri, compared to last week a light test of 450 to 600-pound steer calves and 500 to 650-pound heifer calves traded mostly steady.  Yearlings were lightly tested.  Receipts totaled just over 1,000 head – down from the previous week and year.  The USDA says demand was moderate to good with light supply.  Feeder supply included 58 percent steers and 25 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 550 to 600 pounds were $165.00 to $175.00 and Medium and Large 1 calves 650 to 700 pounds were $148.00 to $155.00.  Feeder heifers, Medium and Large 1’s 500 to 600 pounds were $154.00 to $159.00 and Medium and Large 1’s 600 to 650 pounds were $150.00 to $157.50.

Estimated cattle slaughter is 120,000 head up 2,000 on the week and 4,000 on the year.

Lean hog futures closed sharply lower on technical selling in light trade volume.   Contracts are at a discount to cash.  The weakness in pork value at midday wasn’t helpful to today’s trade.  While bellies have gained nearly $9.00 over the last seven days, weakness in loins and hams are driving the cutout value lower.  December lean hogs closed $1.32 lower at $60.70 and February lean hogs closed $1.52 lower at $66.95.

Cash hogs closed firm to higher.  The trade continues to monitor the availability of market-ready numbers.  But packer demand picked up as the day move on and ahead of Thursday’s holiday.

Barrows and gilts at the Iowa/Southern Minnesota closed $.54 higher at $51.00 to $57.50 and a weighted average of $56.85; the Western Corn Belt closed $.49 higher with a range of $51.00 to $57.50 and an average of $56.86; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.13 higher with a range of $51.00 to $57.50 and an average of $59.59.

Butcher hogs at the Midwest cash markets are steady at $35.00 to $36.00.

At the Interior Missouri Direct, barrows and gilts are $1.00 to $2.00 lower at $50.00 to $51.00 on light to moderate supply and demand.  Sows are steady to $4.00 lower at $30.00 to $40.00.

At Illinois, slaughter sow prices were weak at $35.00 to $46.00 with moderate demand for moderate to heavy offerings.  Barrows and gilts are weak at $35.00 to $44.00 with moderate demand for moderate offerings.

Pork value closed sharply lower down $1.40 at $80.87.  The primals were mostly lower with large drops in the loin, the butt, and the ham.

Estimated hog slaughter is 465,000 head even with last week and up 18,000 on the year.