Market News

Cattle futures higher ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher ahead of this week’s direct cash business.  December live cattle closed $.97 higher at $135.40 and February live cattle closed $.45 higher at $139.42.  January feeder cattle closed $2.67 higher at $164.37 and March feeder cattle closed $1.57 higher at $

It took some time for direct cash cattle trade to get going, but when it did it was at pretty impressive levels.  Live deals were at $135 to $136 in the South and some Northern dressed deals were reported at $213 to $214.  Bids in the South were at $135 to $136 live and dressed bids were at $210 to $213.  Look for more business to develop over the balance of the week.    

At the Callaway Livestock Center in Missouri, compared to last week steer calves 450 to 500 pounds were steady to $2 higher on a light test, steer calves 500 to 650 pounds were steady to $5 higher.  Yearling steers over 800 pounds were steady to firm.  Feeder heifers 450 to 650 pounds were mostly steady.  The USDA says demand was moderate to good on calves and yearlings sold with good demand.  Receipts were up on the week and the year. Feeder supply included 64% steers and 61% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 708 to 736 pounds brought $159 to $161.50 and feeder steers 875 to 877 pounds brought $160 to $164.50.  Medium and Large 1 feeder heifers 553 to 597 pounds brought $145 to $152 and feeder heifers 721 to 745 pounds brought $149 to $150. 

Boxed beef closed lower on light demand for strong offerings.  Choice closed $.61 lower at $278.64 and Select closed $1.06 lower at $262.67.  The Choice/Select spread is $15.97. Estimated cattle slaughter is 122,000 head – even on the week and up 1,000 on the year. 

Lean hog futures ended the day mixed adjusting spreads.  December lean hogs closed $.50 lower at $74.15 and February lean hogs closed $.25 higher at $83.27. 

Cash hogs closed higher with a solid negotiated run. With the shortened holiday week, processors have been moving large numbers already.  The industry continues to monitor the availability of market-ready hogs.  Demand for US pork on the global market has been strong, but there are some demand concerns, which seems to be adding pressure to prices. Barrows and gilts at the National Daily Direct closed $.50 higher with a base range of $54 to $57 and a weighted average of $55.41; the Iowa/Minnesota had a weighted average of $56; the Western Corn Belt had a weighted average of $55.87. Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Pork values closed lower, down $1.33 at $84.92.  Picnics and loins were both sharply lower.  Ribs and butts were lower.  Hams and bellies were sharply higher. Estimated hog slaughter is 480,000 head – down 4,000 on the week and down 16,000 on the year.  Monday’s hog slaughter has been revised to 475,000 head.