Market News

Cattle futures lower ahead of On Feed numbers

At the Chicago Mercantile Exchange, live and feeder cattle closed lower watching direct business develop and ahead of Friday’s USDA reports.  December live cattle closed $.67 lower at $110.65 and February live cattle closed $.42 lower at $113.15.  November feeder cattle closed $.35 lower at $137.02 and January feeder cattle closed $2.42 lower at $137.30. 

Another round of light to moderate trade was reported across most of cattle country on Wednesday.  Live deals in the South are at $110, that’s fully steady with Tuesday’s business and last week’s trade.  Nebraska has also reported some live deals at $110, fully steady with last week’s weighted average basis.  Dressed deals in Nebraska were at mostly $172, generally steady with last week’s weighted averages.  Asking prices are at $112 plus in the South and $177 dressed in the North. 

At the Interstate Regional Stockyards in Missouri, compared to last week, steers under 550 pounds were steady and steers over 550 pounds were steady to $8 higher.  Feeder heifers under 600 pounds were $3 to $5 lower and over 600 pounds were steady.  The USDA says demand was moderate to good and supply was heavy.  Feeder supply included 56 percent steers and 49 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 552 to 588 pounds brought $150.50 to $158.75 and feeder steers 600 to 640 pounds brought $141 to $153.50.  Medium and Large 1 feeder heifers 660 to 695 pounds brought $128.25 to $132.75 and feeder heifers 727 to 744 pounds brought $126 to $128. 

Boxed beef closed mixed on moderate to good demand for moderate offerings.  Choice closed $2.23 higher at $235.84 and Select closed $.34 lower at $213.62.  The Choice/Select spread is $22.22. Estimated cattle slaughter is 119,000 head – up 4,000 on the week and even on the year. 

Lean hog futures were mixed ahead of Friday’s USDA numbers.  December lean hogs closed $.27 higher at $65.80 and February lean hogs closed $.27 higher at $65.90. 

Cash hogs closed lower with a fairly light negotiated run.  The availability of market-ready hogs is more than ample, and processors continue to push slaughter totals higher, adding more pork to an already saturated market.  The industry remains optimistic demand for US pork will continue to hold, but there are also concerns that should a disruption occur, prices would tumble.  Hog weights this week rose to 289.1 pounds, that’s a 1.4-pound increase on the week and the year.  Barrows and gilts at the National Daily Direct closed $.20 with a base range of $51 to $59.75 with a weighted average of $58.65; the Iowa/Minnesota closed $.10 lower with a weighted average of $58.85; the Western Corn Belt closed $.35 lower with a weighted average of $58.45.  The Eastern Corn Belt closed was not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are $3 lower in Wisconsin and Garnavillo, Iowa at $37 and $41.  Red Oak, Iowa is higher at $42. At Illinois, slaughter sow prices were firm with good demand for moderate to heavy offerings at $32 to $45.  Barrow and gilt prices were weak with moderate demand for moderate offerings at $39 to $42.  Boars ranged from $5 to $8. 

Pork values closed lower – down $.92 at $77.68.  Hams closed sharply lower.  Ribs, loins, and butts were weak to lower.  Picnics and bellies were sharply higher. Estimated hog slaughter is 494,000 head – up 40,000 on the week and up 1,000 on the year.