Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct cash business. February live cattle closed $.77 lower at $138.92 and April live cattle closed $.62 lower at $144.20.  March feeder cattle closed $.42 lower at $169.52 and April feeder cattle closed $.27 lower at $172.47. 

Direct cash cattle trade activity started the week quietly, which is typical for a Monday.  Showlists for the week are somewhat higher in Kansas and higher in Texas, Nebraska and Colorado.  Bids and asking prices have yet to surface and it’s likely significant trade volume will be delayed until midweek or later. 

At midsession at the Joplin Regional Stockyards in Missouri, compared to the most recent sale feeder steers were $3 to $8 higher with some five-weight steers $10 higher.  Feeder heifers are steady.  Receipts are up on the week and down on the year.  Feeder supply included 63% steers and 64% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 750 to 798 pounds brought $158 to $164 and feeder steers 801 to 840 pounds brought $154 to $166.10.  Medium and Large 1 feeder heifers 550 to 596 pounds brought $146 to $158 and feeder heifers 606 to 648 pounds brought $147 to $159. 

Boxed beef closed higher with good demand for solid offerings.  Choice closed $.77 higher at $266.03 and Select closed $.67 higher at $258.90.  The Choice/Select spread is $7.13.  Estimated cattle slaughter is 112,000 head – down 4,000 on the week and even on the year.  Friday’s cattle slaughter was 61,000 head – up 51,000 on the week. 

Lean hog futures closed mixed adjusting spreads.  February lean hogs closed $.35 lower at $81.12 and April lean hogs closed $.07 lower at $86.65. 

Cash hogs closed higher with a big negotiated run.  Processors are starting off the new year with aggressive purchases.  Demand for US pork on the global market and domestically is expected to remain strong, which has been helping to provide some price support.  However, there are some long-term demand concerns which have been impacting the price picture. Barrows and gilts at the National Daily Direct closed $.22 higher with a base range of $60 to $66.50 and a weighted average of $61.72; the Iowa/Minnesota had a weighted average of $62.86; the Western Corn Belt had a weighted average of $62.73.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets have no comparison of $48. 

Pork values closed sharply lower – down $5.33 at $86.02.  Loins and hams were both sharply lower.  Bellies and picnics were lower. Butts and ribs closed higher. Estimated hog slaughter is 471,000 head – down 2,000 on the week and down 15,000 on the year.  Friday’s hog slaughter was 295,000 head up 251,000 on the week.