Market News

Cattle futures higher heading into midweek

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, waiting for direct business to develop, with feeders leading the way on the lower corn. December live cattle closed $1.10 higher at $129.95 and February live cattle closed $1.32 higher at $135.22.  November feeder cattle closed $3.17 higher at $157.57 and January feeder cattle closed $4.30 higher at $157.02. 

There was a very light trade that took place on Tuesday.  Live deals in Texas were at $128, which is $3 higher than last week’s weighted averages.  Asking prices in other parts of cattle country were at $128 live in the South, while the North remained quiet.  Look for significant trade volume to develop Wednesday or later. 

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers were steady to $2 higher.  Feeder heifers traded steady to $3 higher.  The USDA says supply was moderate to heavy with good demand.  Receipts were up on the week and the year.  Feeder supply included 56% steers at 54% of the offering was over 600 pounds.  Medium and Large 1 feeder steers is 750 to 789 pounds brought $156 to $163 and feeder steers 802 to 861 pounds brought $155.25 to $160.  Medium and Large 1 feeder heifers brought 455 to 498 pounds brought $142 to $156 and feeder heifers 753 to 797 pounds brought $145 to $151.50. 

Boxed beef closed mixed with moderate to good demand for moderate offerings.  Choice closed $.20 lower at $287.38 and Select closed $1.74 higher at $266.13.  The Choice/Select spread is $21.25. Estimated cattle slaughter is 122,000 head – even on the week and the year. 

Lean hog futures ended the day lower, pressured by long-term demand concerns and the continued slide in cash prices.  December lean hogs closed $1.90 lower at $74.25 and February lean hogs closed $1.65 lower at $77.15. 

Cash hogs closed weak with a big negotiated run.  The industry continues to move fairly large numbers at lower prices.  Processors are keeping a close eye on the availability of market-ready barrows and gilts.  And while demand for US pork on the global market is strong, there are some long-term demand concerns and that’s adding pressure to prices. Barrows and gilts at the National Daily Direct closed $.05 lower with a base range of $60 to $62.50 and a weighted average of $60.98; the Iowa/Minnesota had a weighted average of $61.72; the Western Corn Belt had a weighted average of $61.68; the Eastern Corn Belt had a weighted average of $60.31.

Butcher hog prices at the Midwest cash markets are steady at $66.  At Illinois, slaughter sow prices were steady with good demand for moderate to heavy offerings at $52 to $62.  Barrows and gilts were steady with moderate demand for moderate offerings at $37 to $44.  Boars ranged from $20 to $30 and $10 to $18.

Pork values closed higher – up $1.77 at $94.21.  Hams, picnics, ribs, and loins are all higher to sharply higher.  Butts and bellies are lower to sharply lower. Estimated hog slaughter is 479,000 head – down 1,000 on the week and down 12,000 on the year.  Monday’s hog slaughter has been revised to 472,000 head.