Market News

Cattle futures mixed as traders prepare for direct business

Chicago Mercantile Exchange live cattle futures were mostly lower and feeders were mostly higher, watching corn and waiting for the week’s direct business. December live was up $.05 at $151.57 and February was down $.70 at $152.55. January feeders were $.87 higher at $179.45 and March was up $.62 at $181.77.

Direct cash cattle markets were quiet. The big feature was the distribution of this week’s show list, which looks mixed, larger in Kansas, Nebraska, and Colorado, smaller in Texas. Widespread trade isn’t expected to start until Wednesday or Thursday. Last week, live trade in the south was mostly at $150, fully steady with the previous week, while dressed business in the north was mostly at $242, almost unchanged. Formula and trade volume totals were mixed, up in Nebraska and Texas, down in Kansas.

At midsession for the Oklahoma National Stockyards feeder sale, compared to the previous week, cattle and calves were unevenly steady. The USDA says demand was moderate to good with snow in the forecast for western and northwestern portions of the state. Receipts were down on the week and the year. 59% of the offering were steers and 68% of the total supply weighed less than 600 pounds. Medium and Large 1 feeder steers weighing 400 to 500 pounds sold at $193 to $219 and 500 to 600-pound steers ranged from $176 to $196. Medium and Large 1 feeder heifers weighing 400 to 500 pounds brought $160 to $177 and 500 to 600-pound heifers were reported at $160 to $176.

Boxed beef closed lower with solid movement. Choice was down $.96 at $257.98 and Select beef was $2.06 lower at $233.21. The estimated cattle slaughter of 128,000 head was up 5,000 on the week and 7,000 on the year.

Lean hog futures were firm to higher, supported by the recent trend in pork and demand expectations. December was $.52 higher at $84.87 and February was up $.57 at $88.97.

Cash hogs were mixed with light closing negotiated sales. Monday’s close indicates that nationally, buyers didn’t find much resistance to lower bids, but weren’t able to move many ready numbers, and some major regional buyers did increase bids in an effort to secure supplies ahead of snow in parts of the Midwest. A full switch to higher bids is likely to start Tuesday and continue Wednesday.

National direct barrows and gilts closed $1.26 lower with a base price range of $82.50 to $92.50 for a weighted average of $84.08, while Iowa/Southern Minnesota was $2.74 higher and the Western Corn Belt was up $2.82, with both averaging $84.69.

Midwest butcher hog markets were steady at $60. Illinois direct sows were steady at $59 to $71 on light demand for light offerings. Barrows and gilts were steady at $58 to $68 with moderate demand and offerings. Boars ranged from $9 to $35.

The close for wholesale pork was delayed by packer submission issues. The estimated hog slaughter of 493,000 head was down 1,000 on the week, but up 10,000 on the year.