Market News

Cattle futures slide ahead of significant cash trade

At the Chicago Mercantile Exchange, live cattle ended the day lower ahead of widespread direct cash business and concerns about long-term beef demand.  Feeder cattle were lower on the same factors.   December live cattle closed $1.07 lower at $117.22 and February live cattle closed $.75 lower at $122.35.  November feeder cattle closed $.27 lower at $147.60 and January feeder cattle closed $.12 lower at $144.67. 

Direct cash cattle trade saw another round of light business.  Deals in Kansas were fully steady with Wednesday’s activity and $2 higher than last week’s weighted averages.  The rest of cattle country remained relatively quiet.  Asking prices will likely be restated at $114 to $115 live in the South and $180 to $182 dressed in the North.  The bulk of this week’s business will likely develop sometime on Friday.

At the Huss Livestock Market in Nebraska, receipts were down on the week and the year.  Compared to last week, steer calves sold unevenly steady and heifer calves were steady to $3 higher.  Yearling heifers were $2 higher.  The USDA says demand was good for yearlings with moderate to good demand for calves.  Buyers preferred calves with preconditioned shots over springtime-vaccinations.  Feeder supplies included 46% steers and 54% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 552 to 597 pounds brought $150.50 to $154 and feeder steers 810 to 830 pounds brought $152 to $156.75.  Medium and Large 1 feeder heifers 500 to 530 pounds brought $143.50 to $151 and feeder heifers 762 to 799 pounds brought $144 to $150. 

Boxed beef closed steady to sharply higher on good demand and moderate offerings.  Choice closed $2.13 higher at $232.18 and Select closed $.18 lower at $206.49.  The Choice/Select spread closed at $25.69.   Estimated cattle slaughter is 118,000 head – even on the week and down 4,000 on the year. 

Lean hog futures ended the day modestly higher on oversold signals and higher wholesale values during the session.  Thursday’s Export Sales report from the USDA did show some positive signs – but the heavy supplies and demand uncertainty continue to limit price moves higher. December lean hogs closed $.22 higher at $66 and February lean hogs closed $.05 higher at $73.32.

Cash hogs ended the day weak with moderate negotiated purchase totals.  While Thursday’s Export Sales Report did have some positive news, concerns still linger about the viability of China as a long-term demand destination.  With the heavy supplies of market-ready barrows and gilts and slaughter runs that are hitting or nearing records almost daily, the lack of demand certainty creates even more challenges for prices to turn higher.  Barrows and gilts at the Iowa/Southern Minnesota closed $.68 lower for a weighted average of $48.27; the Western Corn Belt closed $.73 lower for a weighted average of $48.20; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.36 lower with a base range of $45 to $51.14 for a weighted average of $49.07. 

Butcher hog prices at the Midwest cash market were not available at midday.   At Illinois, slaughter sow prices were steady at $33 to $46 with very good demand for moderate offerings.  Barrow and gilt prices were $1 lower at $30 to $36 with light demand for moderate offerings. 

Pork values ended the day firm – up $.61 at $76.05.  Loins, hams, and picnics were higher to sharply higher.  Ribs were steady.  Butts and bellies were lower.  Estimated hog slaughter is 490,000 head, down 1,000 on the week but up 17,000 on the year.