Market News

Cattle futures lower ahead of week’s direct business

Chicago Mercantile Exchange live and feeder were lower ahead of the week’s widespread direct business. Feeders picked up additional pressure from the higher move in corn. December live was $.52 lower at $152.47 and February was down $.50 at $155.82. November feeders were down $.25 at $177.62 and January was $.92 lower at $179.45.

Direct cash cattle markets were quiet. The big feature was the distribution of this week’s show list, with widespread business not expected until the second half of the week. This week’s show list looks mixed, higher in Texas and somewhat larger in Nebraska and Colorado, but lower in Kansas. Business was primarily at $150 live in the south, up $2 from the prior week’s weighted average, and mostly $240 dressed in the north, about $5 higher.

Boxed beef closed mixed with moderate movement. Choice was up $.39 at $263.65 and Select was down $.03 at $234.46. The estimated cattle slaughter of 128,000 head was up 2,000 on the week and 7,000 on the year.

At midsession for the Oklahoma National Stockyards feeder cattle sale, compared to the previous week, steers were steady to $3 higher, except for weights above 800 pounds, which were not well tested, while steer calves were up $3 to $6. Heifer calves weighing less than 500 pounds were unevenly steady, with heifers weighing more than 500 pounds $2 to $4 higher. The USDA says demand was good for calves with receipts below last week and last year. 60% of the feeder supply were steers and 60% of the total offering weighed less than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds were reported at $184 to $200 and 700 to 800-pound steers sold at $173 to $179.50. Medium and Large 1 feeder heifers weighing 400 to 500 pounds ranged from $162 to $176 and 500 to 600-pound heifers brought $157 to $175.

Lean hog futures were mixed on bear spreading, with nearby contracts down and deferred months up, watching demand signals. December was down $1.17 at $84.92 and February was $.40 lower at $88.45, with the remaining contracts firm to higher.

Cash hogs were steady to sharply lower with light closing negotiated movement. This week has started like the last several weeks: with initial lower bids as buyers assess demand and ready numbers, ahead of higher bids expected to start Tuesday. The industry continues to monitor average weights, in addition to the availability of ready numbers and demand signals.

National direct barrows and gilts closed $2.20 lower with a base price range of $84 to $95 and a weighted average of $88.34, with Iowa/Southern Minnesota down $2.71 at $89.91, the Western Corn Belt $2.49 lower at $90.13, and the Eastern Corn Belt down $3.51 at $88.52.

Butcher hogs at the Midwest cash markets were steady at $58. Illinois direct sows were steady at $59 to $71 on light demand for moderate offerings. Barrows and gilts were steady at $58 to $68 with moderate demand for moderate offerings. Boars ranged from $9 to $35.

Pork closed $1.40 lower at $99.94. Bellies dropped $23.62 and picnics were down sharply, with loins, butts, ribs, and hams up sharply. The estimated hog slaughter of 491,000 head was up 8,000 on the week and 17,000 on the year.