Market News

Cattle, hog futures up ahead of holiday

At the Chicago Mercantile Exchange, cattle futures ended the day sharply higher in light trade volume on technical support.  Wholesale beef’s firm move at the midday was supportive of the day’s trade.  Follow through buying is helping to bring some traders back into the market.  December live cattle closed $1.07 higher at $119.05 and February live cattle closed $1.42 higher at $125.47.  January feeder cattle closed $1.10 higher at $152.72 and March feeder cattle closed $1.32 higher at $151.15.

Trade was generally light.  Buyers are either finished for the week or will make a few rounds on Friday.  Trade volume on Tuesday was light to moderate in most areas.  Asking prices for remaining showlists are around $120 in the South and $192 plus in the North.  Bids have been reported at $118 to $119 live and $188 to $190 dressed.

Boxed beef closed steady to firm on moderate to good demand and moderate to heavy offerings.  Choice closed $.38 higher at $209.01 and Select closed $.01 lower at $188.64.  Select and Choice rib, chuck, and round cuts were steady to firm while loin cuts were weak.  The Choice/Select spread increased to $20.37.

At the Philip Livestock Auction in South Dakota, lightweight feeder steers were $4.00 lower and 400 to 750-pound steers were $6.00 to $8.00 lower.  Feeder heifers 400 to 600 pounds were steady to $4.00 lower and heifers 600 to 750 pounds were $6.00 lower.  Receipts totaled 5,206 – down more than 6,000 from the previous auction and down slightly on the year.  The USDA says there was good demand for an active market.  Feeder supply included 60 percent steers and 32 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 550 to 594 pounds were $169.00 to $184.50 and Medium and Large 1 calves 604 to 648 pounds were $168.00 to $174.25.  Feeder heifers, Medium and Large 1’s 508 to 544 pounds were $160.00 to $169.00 and Medium and Large 1’s 550 to 596 pounds were $150.00 to $167.00.

Estimated cattle slaughter is 119,000 head up 1,000 on the week and 3,000 on the year

Lean hog futures closed sharply higher in light trade volume ahead of the holiday.   The sharp moves higher in pork cutout value is providing support to the market.  December lean hogs closed $2.12 higher at $62.82 and February lean hogs closed $2.15 higher at $69.10.

Cash hogs closed steady with a mostly weak undertone.  The trade continues to watch the availability of market-ready numbers.  Packer demand seems to have picked up ahead of the Thanksgiving holiday.  Look for large kill totals at the end of the week and on into next.  Early projections for Saturday’s slaughter total is 345,000 head.  But this big runs could add additional pressure on prices.

Barrows and gilts at the Iowa/Southern Minnesota closed $.04 lower with a range of $52.00 to $58.00 and an average of $56.81; the Western Corn Belt closed $.06 lower with a range of $52.00 to $58.00 and an average of $56.81; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.06 higher with a range of $50.00 to $58.00 and an average of $56.65.

Butcher hogs at the Midwest cash markets are steady at $35.00 although some markets are closed today.

At the Interior Missouri Direct, barrows and gilts are steady at $50.00 to $51.00 on light supply and demand.

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

Pork value closed higher – up $1.11 at $81.98.  The primals were mostly higher with the strongest gains in the loin.

Estimated hog slaughter is 459,000 head, down 6,000 on the week and up 16,000 on the year.