Market News

Cattle futures mixed ahead of cash business

At the Chicago Mercantile Exchange, live cattle ended the day mixed on spread trade ahead of widespread direct cash business.  Feeder cattle were mixed on the same factors.  December live cattle closed $.02 lower at $120.17 and February live cattle closed $.22 lower at $124.75.  January feeder cattle closed $.02 lower at $14.52 and March feeder cattle closed $.60 higher at $142.27. 

Direct cash cattle trade activity is typically quiet for a Monday with bids and asking prices yet to surface.  Showlists this week appear to be mixed – higher in Nebraska, Colorado, and Kansas, but lower in Texas.  Significant trade volume will likely be delayed until the latter half of the week. 

At midsession at the Oklahoma National Stockyards, compared to last week feeder steers are steady to $3 higher with improved quality from last week.  Feeder heifers are steady in a light test.  Steer calves are steady and heifer calves are steady to $3 lower.  The USDA says demand is very good for steers and moderate to good for heifers.  Quality is average to attractive with several large strings of cattle included.  Receipts of 16,000 head are up significantly on the week and the year.  Feeder supply included 67 percent steers and 66 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 753 to 799 pounds brought $141.50 to $153.25 and feeder steers 866 to 882 pounds brought $146.10 to $144.50.  Medium and Large 1 feeder heifers 590 to 593 pounds brought $130 to $135.50 and feeder heifers 661 to 677 pounds brought $136 to $141.75. 

Boxed beef closed lower on light demand and moderate to heavy offerings.  Choice closed $.92 lower at $223.64 and Select closed $.81 lower at $206.49.  The Choice/Select spread closed at $17.15.  Estimated cattle slaughter is 121,000 head – up 1,000 on the week and 2,000 on the year. 

Lean hog futures ended the day lower on long-term demand uncertainty and contracts premium to cash.  December lean hogs closed $1.12 lower at $60 and February lean hogs closed $.85 lower at $66.70. 

Cash hogs closed higher with moderate negotiated purchases.  The cash market has expectations of increased demand potential for US pork on the global market while domestic demand also remains strong.  There’s been some positive movements on trade with both China and the USMCA.  That optimism is winning out today, but heavy supplies continue to pressure the market and any disruption to demand could send prices tumbling. Barrows and gilts at the Iowa/Southern Minnesota closed $1.41 higher for a weighted average of $46.65; the Western Corn Belt closed $1.24 higher for a weighted average of $46.64; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.50 higher with a base range of $42 to $48 for an average of $47.02

Butcher hogs at the Midwest cash markets are steady at $36.  At Illinois, slaughter sow prices were $1 lower at $21 to $31 with moderate demand for moderate offerings.  Receipts are down on the week and the year.  Barrow and gilt prices were $1 higher at $26 to $33 with moderate demand for moderate offerings. 

Pork values closed steady down $.10 at $81.98.  Bellies and butts were lower.  Loins closed weak.  Hams and ribs were steady.  Picnics were firm.  Estimated hog slaughter is 496,000 head – down 1,000 on the week and up 21,000 on the year.