Market News

Cattle futures lower heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were lower watching direct business develop.  Feeders had additional pressure from the higher move in corn.  February live cattle closed $.87 lower at $156.72 April lives closed $1.02 lower at $160.52. March feeder cattle closed $.90 lower at $182.85 and April feeder cattle closed $1.35 lower at $187.

There was a light direct cash cattle trade that took place on Thursday.  Dressed deals in the North were at mostly $248, fully steady with last week’s weighted averages, there were also a few deals marked $250.  The South was quiet. Bids were at $153 to $154 live in the South.  Asking prices were firm at $157-plus live in the South and $250-plus dressed in the North.  More business is expected to take place on Friday.

At the Bloomfield Livestock Feeder Cattle Auction in Iowa, steer calves 450 to 750 pounds were $10 to $15 higher than the most recent sale, steers over 750 pounds were weak.  Heifer calves 400 to 700 pounds were $8 to $10 higher and heifers over 700 pounds were firm.  The USDA says trade was active and demand was good.  Receipts were up from the most recent sale and about steady on the year.  Feeder supply included 62% steers and 60% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 553 to 595 pounds brought $200 to $214 and feeder steers 702 to 747 pounds brought $179 to $194.75.  Medium and Large 1 feeder heifers 552 to 598 pounds brought $170 to $188.50 and feeder steers 650 to 699 pounds brought $172.85 to $180. 

Boxed beef closed mixed on light demand for moderate offerings.  Choice closed $.47 higher at $268.75 and Select closed $.32 lower at $251.48.  The Choice/Select spread is $17.27. Estimated cattle slaughter was 126,000 head, up 6,000 on the week and up 5,000 on the year. 

Lean hog futures were higher on oversold signals, the solid weekly export sales report, and the strong move in pork at midday.  February lean hogs closed $.22 higher at $77.02 and April lean hogs closed $1.67 higher at $87.

Cash hogs closed lower with a light negotiated run.  Processors were almost lackluster in their procurement efforts following a couple of days of larger movement at higher prices.  This week’s Export Sales report showed demand for US pork has been strong on the global market, which does help provide price support.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $1.70 lower with a base range of $67 to $73 with a weighted average of $70.57; the Iowa/Minnesota closed $1.20 lower with a weighted average of $71.54; the Western Corn Belt closed $1.45 lower with a weighted average of $71.26.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $62. At Illinois, slaughter sow prices were steady with moderate demand for light to moderate offerings at $30 to $42.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $64.  Boars ranged from $15 to $20 and $10 to $13. 

Pork values closed higher – up $1.35 at $80.46.  Loins and hams were both sharply higher.  Bellies were higher.  Butts, picnics, and ribs were lower. Estimated hog slaughter was 491,000 head – up 57,000 on the week and up 17,000 on the year.