Market News

Cattle futures mostly higher heading into midweek

At the Chicago Mercantile Exchange, live and feeder cattle were mostly higher, waiting for the week’s direct business to develop.  February live cattle closed $.82 higher at $170.77 and April lives closed $.57 higher at $173.60.  March feeder cattle closed $.20 lower at $224.87 and April feeder cattle closed $.25 higher at $230.35. 

It was another quiet day for direct cash cattle trade activity.  Bids and asking prices didn’t surface.  Weather was definitely a factor in Tuesday’s business.  It’s very likely significant trade volume will be pushed into late in the week.

At the Callaway Livestock Center in Missouri, steer calves 400 to 500 pounds were steady to firm on a light test.  Steers 500 to 650 pounds were mostly $10 to $18 higher with spots of $20 higher on 500-to-550-pound steers.  Steers 650 to 700 pounds were steady to firm.  Steers over 800 pounds sold with a higher undertone.  Feeder heifers 400 to 500 pounds were steady to firm, heifers 500 to 600 pounds were mostly $3 to $10 higher, heifers 600 to 700 pounds sold with a higher undertone.  The USDA says the cattle market held up well despite the winter storm that moved through the area and 16 pot loads of top-quality yearling steers and heifers all sold with good demand.  Several part loads and large groups of yearlings and calves sold on an active market.  Receipts were up on the year.  Feeder supply included 64% steers and 63% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 715 to 742 pounds brought $228.50 to $238.75 and feeder steers 752 to 763 pounds brought $220 to $228.  Medium and Large 1 feeder heifers 552 to 586 pounds brought $230 to $245 and feeder heifers 654 to 696 pounds brought $215.25 to $224.

Boxed beef closed higher on solid demand for moderate offerings.  Choice was $1.33 higher at $280.16 and Select closed $3.47 higher at $262.66. The Choice/Select spread is $17.33. Estimated cattle slaughter was 94,000 head – down 32,000 on the week and down a little more than 33,000 on the year.  Monday’s cattle slaughter has been revised to 104,000 head. 

Lean hog futures ended the day higher, supported by the recent uptick in pork values.  February lean hogs closed $1.27 higher at $71.87 and April lean hogs closed $.97 higher at $78.50. 

Cash hogs closed higher with a solid negotiated run.  Processors had to get a little more aggressive in their procurement efforts Tuesday afternoon and bid up to move needed numbers.  Demand for U.S. pork has been relatively strong on the global market, but concerns about consistent demand linger.  Domestic demand has also struggled recently. Barrows and gilts at the National Daily Direct closed $.41 higher with a base range of $41 to $47 and a weighted average of $45.31; the Iowa/Minnesota closed $1.25 higher with a weighted average of $46.13; the Western Corn Belt closed $.93 higher with a weighted average of $45.81; no comparison at the Eastern Corn Belt but a weighted average of $44.03.

Butcher hog prices at the Midwest cash markets are steady at $36. At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate to heavy offerings at $26 to $38.  Barrows and gilts were steady with moderate demand for moderate offerings at $25 to $35.  Boars ranged from $10 to $20 and $5 to $10.

Pork values closed lower – down $.49 at $84.53.  Picnics, butts, hams, and loins were all lower.  Ribs and bellies were higher. Estimated hog slaughter was 395,000 head – down 97,000 on the week and down a little more than 67,000 on the year.  Monday’s hog slaughter has been revised to 468,000 head.