Market News

Cattle futures lower on profit-taking

At the Chicago Mercantile Exchange, live cattle ended the day lower on profit-taking.  Feeders had additional pressure from the higher move in corn.  December live cattle closed $.82 lower at $153.30 and February lives closed $.27 lower at $156.70.  November feeders closed $1.22 lower at $177.92 and January feeders closed $1.70 lower at $180.25 

Another quiet day for direct cash cattle trade activity.  Asking prices were around $151 to $152 live in the South, while the North remained quiet.  Bids have been elusive.  Significant trade volume will likely be delayed until midweek or later. 

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers under 525 pounds were $8 to $13 higher with heavier weights $2 to $6 higher.  Feeder heifers under 625 pounds were $9 to $11 higher with heavier weights steady to $3 higher.  The USDA says supply was moderate with good demand.  Receipts were up on the week and the year.  Feeder supply included 52% steers and 53% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 538 pounds brought $180 to $197.50 and feeder steers 882 pounds brought $179.85.  Medium and Large 1 feeder heifers 453 to 495 pounds brought $165 to $180 and feeder heifers 551 to 594 pounds brought $161 to $176. 

Boxed beef closed higher on solid demand for strong offerings.  Choice closed $3.51 higher at $261.43 and Select closed $1.74 higher at $227.35.  The Choice/Select spread is $34.08. Estimated cattle slaughter was 129,000 head – up 1,000 on the week and up 5,000 on the year. 

Lean hog futures ended the day mixed, mostly higher, supported by sharply higher cash prices.  December lean hogs closed $.52 higher at $88.45 and February lean hogs closed $.22 higher at $90.67. 

Cash hog closed sharply higher with another big negotiated run. Processors are bidding up to move their desired numbers and have been more aggressive in their procurement efforts.  That seems to fit the pattern of recent weeks.  Demand for US pork on the global market has been strong and while that is expected to continue, there are concerns a stressed global economy could lead to weakened demand and lower prices.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $7.59 higher with a base range of $85 to $102 and a weighted average of $96.77; the Iowa/Minnesota closed $5.25 higher with a weighted average of $99.68; the Western Corn Belt closed $5.16 higher with a weighted average of $99.55.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings of $59 to $71.  Barrows and gilts were steady with moderate demand for moderate offerings at $58 to $68.  Boars ranged from $30 to $35 and $9 to $19. 

Pork values closed lower – down $3.44 at $98.49.  Bellies dropped nearly $14, Picnics, butts, ribs, hams, and loins were also lower. 

Estimated hog slaughter was 490,000 head – up 15,000 on the week and up 13,000 on the year.  Monday’s hog slaughter has been revised to 483,000 head.