Market News

Cattle futures higher ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct business.  December live cattle closed $.12 higher at $136 and February live cattle closed $.70 higher at $138.60.  January feeder cattle closed $.97 higher at $165.82 and March feeder cattle closed $1.40 higher at $167.90. 

It was a quiet Wednesday for direct cash cattle trade activity.  The stand-off continues as bids are $138 live with asking prices firm at $143 plus live.  In neither side budges, it could push significant trade volume until late in the week.  Wednesday’s Fed Cattle Exchange had an offering of 1,868 head, with zero sold as none met the reserve price. 

At the Ozarks Regional Stockyards in Missouri, compared to last week steer and heifer calves under 500 pounds were $8 to $12 higher with heavier weights $4 to $8 higher.  The USDA says demand was good on a moderate supply and the strong fed cattle prices are pushing the feeder cattle cash market higher.  Receipts were up on the week and down on the year.  Feeder supply included 53% steers and 41% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 502 to 542 pounds brought $180 to $186 and feeder steers 606 to 648 pounds brought $159 to $170.  Medium and Large 1 feeder heifers 455 to 493 pounds brought $152 to $162 and feeder heifers 550 to 569 pounds brought $145 to $150. 

Boxed beef closed lower with light demand for strong offerings.  Choice closed $1.46 lower at $270.22 and Select is $2.32 lower at $257.97.  The Choice/Select spread is $12.25. Estimated cattle slaughter is 122,000 head, up 1,000 on the week and up 3,000 on the year.

Lean hog futures were mixed adjusting spread and the mixed cash business.  December lean hogs closed $.25 higher at $73.62 and February lean hogs closed $.15 higher at $80.12. 

Cash hogs closed higher with a solid negotiate run.  Processors continue to monitor the availability of market-ready hogs and have had to work a little harder this week to move their desired numbers.  Demand for US pork on the global market has been strong, which is expected to continue.  However, there are some long-term demand concerns, which has added pressure to prices. Barrows and gilts at the National Daily Direct closed $1.35 higher with a base range of $54 to $62 and a weighted average of $57.95; the Iowa/Minnesota had a weighted average of $59.65; the Western Corn Belt a weighted average of $59.57.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 lower at $60. At Illinois, slaughter sow prices are $1 to $3 lower with moderate demand for heavy offerings at $58 to $68.  Barrows and gilts were steady with light demand for moderate offerings at $32 to $39. 

Pork values closed sharply lower – down $4.33 at $82.37.  Butts, Pork values closed sharply lower – down $4.33 at $82.37.  Butts, hams, bellies, and loins were all sharply lower.  Ribs and picnics were lower. Estimated hog slaughter is 480,000 head, up 9,000 on the week and down 10,000 on the year.