Market News

Cattle futures still waiting on cash business to develop

At the Chicago Mercantile Exchange, live cattle were mostly lower, and feeders were mixed waiting for direct cash business to unfold.  February live cattle closed $.20 lower at $157.55 and April lives closed $.40 lower at $160.92.  March feeders closed $1.27 lower at $184.27 and April feeders closed $1.17 lower at $188.40. 

Direct cash cattle trade activity was relatively quiet again Thursday.  Packer inquiry did improve, and bids surfaced at $154 to $155 live in the South and $250 to $252 dressed in the North.  Asking prices were at $158 to $159 live and $253-plus dressed in the North.  Significant trade volume could hold out until sometime on Friday. 

At the Huss Livestock Market in Nebraska, grass-type steers were sharply higher and feeder steers were unevenly steady.  Most heifers were $3 to $7 higher, however, heifers 700 to 850 pounds were $1 to $3 lower.  The USDA says demand was moderate to start, but improved throughout the sale.  Receipts were up on the year.  Feeder supply included 61% steers and 84% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 700 to 749 pounds brought $180.50 to $192 and feeder steers 807 to 849 pounds brought $179.50 to $185.50.  Medium and Large 1 feeder heifers 659 to 697 pounds brought $174.50 to $186.50 and feeder heifers 700 to 747 pounds brought $172 to $176.50. 

Boxed beef closed lower on light demand for moderate offerings.  Choice was $3.24 lower at $277.49 and Select closed $1.09 lower at $257.01.  The Choice/Select spread is $20.48.  Estimated cattle slaughter was 122,000 head – down 5,000 on the week and up 6,000 on the year.   

Lean hog futures were mixed, adjusting spreads.  While the USDA’s latest supply and demand numbers are overall friendly to hog markets, long-term demand uncertainties remain.  February lean hogs closed $.55 lower at $78.75 and April lean hogs closed $1.22 lower at $87.17. 

Cash hogs closed lower with a fairly light negotiated run. While processors started the day more aggressive in their procurement efforts, that’s not how the day finished.  Pork is a great value for consumers on the retail side of things and the industry is optimistic strong demand will continue, providing additional price support.  All eyes are on the availability of market-ready hogs, and the industry is also monitoring demand outside of the US.   The USDA’s latest supply and demand report does provide a supportive outlook for the 2023 hog market overall. Barrows and gilts at the National Daily Direct closed $.39 lower with a base range of $67 to $75 with a weighted average of $72.60; the Iowa/Minnesota closed $.37 lower with a weighted average of $73.77 the Western Corn Belt closed $.83 lower with a weighted average of $73.14.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were $2 lower at $56. At Illinois, slaughter sow prices were steady with light demand for moderate offerings at $32 to $44.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $64.  Boars ranged from $15 to $20 and $10 to $13.

Pork values closed lower – down $1.35 at $79.33.  Picnics were sharply lower.  Bellies, loins, and butts were lower.  Hams and ribs were higher. 

Estimated hog slaughter was 488,000 head – down 2,000 on the week and up 25,000 on the year.