Market News

Cattle futures open the year sharply higher

At the Chicago Mercantile Exchange, cattle futures closed higher on carry-over from last week’s cash trade and the strength in the wholesale market.  The year is starting off with a favorable demand outlook and last week’s consumer confidence report also provides a bump in demand expectations. The cold, wet weather makes weight gain a challenge and is supportive of prices. February live cattle closed $1.80 higher at $123.35 and April live cattle closed $1.67 higher at $124.10.  January feeder cattle closed $3.52 higher at $149.52 and March feeder cattle closed $4.20 at $146.87.

Direct cash cattle trade is quiet and significant trade volume isn’t likely to develop until the latter part of the week.  New showlists appear to be mixed – smaller in Kansas, but generally larger in Colorado, Nebraska, and Texas.  The ready numbers look to be steady with last week.  While bids and asking prices aren’t established yet, don’t be surprised if cattle are priced a few dollars higher than last week.

Boxed beef closed sharply higher on moderate demand with light offerings.  Select and Choice chuck and round cuts were steady to firm while loin cuts were higher.  Choice rib cuts were steady.  Choice closed up $2.24 at $205.14 and Select closed up $3.59 at $196.57.  The Choice/Select spread is $8.59.

At the Joplin Regional Stockyards, at mid-session, compared to the most recent sale, steer and heifer calves are $2.00 to $5.00 higher and yearlings are steady.  Receipts totaled 6,000 head, up from two weeks ago.  The USDA says demand is good and supply is moderate.  Feeder supply included 54 percent steers and 72 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 500 to 600 pounds are $164.00 to $186.00 and Medium and Large 1’s 600 to 700 pounds are $150.00 to $168.00.  Feeder heifers, Medium and Large 1’s 500 to 600 pounds were $142.00 to $161.00 and Medium and Large 1’s 600 to 700 pounds are $140.00 to $146.50.

Estimated cattle slaughter 113,000 head, up 22,000 on the week and down 3,000 on the year.

Lean hog futures closed mostly lower on technical pressure.  There are big concerns that supply will exceed demand and the colder temperatures could also be slowing down marketings and backing up hog supply.  February lean hogs closed $1.05 lower at $70.72 and April lean hogs closed $.80 lower at $74.85.

Cash hogs ended the day steady with a firm undertone.  The trade continues to watch the availability of market-ready numbers.  While slaughter runs will likely be fairly steady this month, look for a reduction in chain speed as we progress further into the first quarter of this year.

Barrows and gilts at the Iowa/Southern Minnesota closed $.24 higher with a range of $54.50 to $60.50 and a weighted average of $59.43; the Western Corn Belt closed $.06 higher with a range of $54.00 to $60.50 and a weighted average of $59.09; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.28 with a range of $54.00 to $60.50 and a weighted average of $59.02.

Butcher hogs at the Midwest cash markets are steady at $35.00 to $40.00.

At the Interior Missouri Direct, barrows and gilts are steady to $1.00 higher at $47.00 to $51.00.  Sows are steady to $2.00 higher at $26.00 to $38.00.

At Illinois, slaughter sow prices are steady at $24.00 to $38.00 with light to moderate demand for light to moderate offerings.  Barrows and gilts are $2.00 higher at $36.00 to $42.00 with moderate demand for moderate offerings.

Pork values closed steady – up $.11 at $78.33.  The primals closed mostly higher, including a nearly $5.00 jump in the belly.

Estimated hog slaughter is 460,000 head, up 103,000 from the previous week and up 20,000 on the year.