Market News

Cattle futures lower ahead of on feed numbers

 

Chicago Mercantile Exchange live cattle futures closed lower, pressured by the week’s steady to lower direct cash business and technical selling. The trade was also getting squared up ahead of the USDA’s Cattle on Feed report out Friday afternoon. February was $1.30 lower at $128.35 and April was down $.85 at $125.37.

Feeder cattle were down on pressure from this week’s direct business, technical selling, and the firm corn. March was $.65 lower at $146 and April was down $1.02 at $148.07.

Direct cash cattle business developed in the north mostly at $204 on the dressed basis with some sales as high as $205, steady to $1 lower than last week’s weighted average. Clean-up was reported in Texas at $128 live. Wednesday’s light to moderate business was primarily at $128 on live, down $2 on the week, with lighter dressed trade in parts of the north mainly at $203 to $205, steady to $2 lower. There’s still probably some business left to be done. Asking prices are around $130 live and $205 dressed, with bids at $127 to $128 live. The USDA’s Cattle on Feed report is out Friday at 3 Eastern/2 Central, with most analysts expecting strong January marketings, near steady placements, and a higher on feed total.

Boxed beef closed higher on light to moderate demand and offerings. Choice was up $1.03 at $218.40 and Select was $.14 higher at $212.06. The estimated cattle slaughter of 117,000 head was down 1,000 on the week, but up 1,000 on the year.

At the Winter Livestock Auction feeder cattle sale in Dodge City, Kansas, compared to the previous week, steers were firm to $2 higher. Heifers weighing 600 to 700 pounds were steady to $4 higher and 750 to 800 pound heifers were up $2. The USDA says trade was active with good demand. 81% of the offering weighed more than 600 pounds and 66% of the run were steers. Medium and Large 1 feeder steers weighing 700 to 800 pounds ranged from $146.50 to $155.28 and 800 to 900 pound steers were reported at $143 to $147. Medium and Large 1 feeder heifers weighing 600 to 700 pounds brought $143 to $154 and 700 to 800 pound heifers sold at $137.50 to $143.50.

Lean hog futures were higher, supported by oversold signals and the higher midday pork. Contracts were mixed early, but the gains picked up steam as trade volume increased. April was up $1.37 at $71.27 and June was $1.65 higher at $82.95.

Cash hogs were steady to lower. Buyers continued their recent efforts to move the needed numbers at mostly lower prices as they try to further improve their margins. Winter weather, including ice, has slowed down movement in some areas, pushing the estimate for Saturday’s kill to more than 125,000 head.

Pork closed $.03 lower at $78.70. Loins, butts, ribs, and hams were lower, while picnics were firm and hams were higher. The estimated hog slaughter of 463,000 head was up 1,000 on the week and 20,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $.18 lower at $60 to $64.25 for a weighted average of $63.71, the Western Cornbelt was down $.18 at $60 to $64.25 with an average of $63.58, and national direct barrows and gilts were $.43 lower at $57 to $64.25 for an average of $63.50. Butcher hogs at the Midwest cash markets were steady to $2 lower at $41 to $46. Missouri direct was steady to $7 lower at $55 to $61 on light to moderate supply and demand. Sows were steady at $38 to $54. Illinois direct sows were steady at $42 to $58 on moderate demand for light to moderate offerings. Barrows and gilts were steady at $40 to $46 with moderate demand for moderate offerings. Boars ranged from $10 to $28.