Market News

Cattle futures lower waiting for cash trade

At the Chicago Mercantile Exchange, live cattle closed mostly lower, and feeders were lower ahead of the week’s direct cash business.  February live cattle were unchanged at $157.75 and April lives closed $.32 lower at $161.32.  March feeder cattle closed $.95 lower at $185.55 and April feeder cattle closed $.95 lower at $189.57.

Wednesday was another slow day for direct cash cattle business.  While packer inquiry did improve, significant trade volume will likely be delayed until sometime Thursday or Friday.  Bids did surface at $157 live and $250-251 dressed in Nebraska.  Asking prices were at $158 to $159 live in the South.  Today’s Fed Cattle Exchange had an offering of 893 head, none of which sold as bids didn’t meet reserve prices of $148 and $158 live. 

At the Gordon Livestock Market in Nebraska, the sale was full of quality feeder heifers and steers.  Demand was moderate to good for the solid offerings.  Receipts were up on the year.  Feeder supply included 67% steers and 52% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 558 to 596 pounds brought $211.50 to $221 and feeder steers 656 to 697 pounds brought $197 to $210.50.  Medium and Large 1 feeder heifers 558 to 573 pounds brought $181.50 to $199.50 and feeder heifers 613 to 647 pounds brought $177.50 to $186. 

Boxed beef closed lower on light demand for light offerings.  Choice closed $3.80 lower at $280.73 and Select closed $.23 lower at $258.10.  The Choice/Select spread is $22.63. Estimated cattle slaughter was 127,000 head – up 2,000 on the week and up 13,000 on the year. 

Lean hog futures ended the day lower, pressured by lower cash and wholesale business and long-term demand uncertainties.  February lean hogs closed $.50 lower at $79.30 and April lean hogs closed $1.12 lower at $88.40. 

Cash hogs closed mixed with a moderate negotiated run.  Processors were a little more aggressive in their procurement efforts in some parts of the country.  The industry continues to monitor the availability of market-ready hogs and demand.  There are concerns demand could weaken because of a slowing global economy and that has the potential to put pressure on prices. Barrows and gilts at the National Daily Direct closed $.32 lower with a base range of $67 to $75 and a weighted average of $72.99; the Iowa/Minnesota closed $.22 higher with a weighted average of $74.17; the Western Corn Belt both closed $.06 higher with a weighted average of $73.97.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $58. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $32 to $44.  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 lower – down $1.05 at $80.68.  Butts and picnics were sharply lower.  Hams and loins were lower.  Bellies and ribs were firm to higher. Estimated hog slaughter was 490,000 head – up 15,000 on the week and up 59,000 on the year.  Tuesday’s hog slaughter has been revised to 458,000 head.