Market News

Cattle futures waiting for direction from direct cash trade

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were higher ahead of the week’s direct cash business and Friday’s On Feed numbers.  February live cattle closed $.47 lower at $155.57 and April live cattle closed $.27 lower at $159.65.  January feeder cattle closed $1.52 higher at $183.62 and March feeder cattle closed $1.22 higher at $185.02. 

It was a quiet Tuesday for direct cash cattle trade activity.  Packer inquiry was limited, and bids did not surface.  Early asking prices were noted at $156-plus live in parts of the South, while the North was quiet.  Significant trade volume will likely hold out until midweek or later. 

At the Tri-State Livestock Auction in Nebraska, compared to last week steers 700 to 850 pounds were $2 to $6 lower, other classes of steers and heifers were not well compared.  The USDA says demand was good for all offerings.  Receipts were down on the week and the year.  Feeder supply included 57% steers and 90% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 706 to 724 pounds brought $184 to $190 and feeder steers 817 to 836 pounds brought $185.50 to $185.75.  Medium and Large 1 feeder heifers 700 to 737 pounds brought $173 to $174.85 and feeder heifers 873 pounds brought $170.25. 

Boxed beef closed mixed on light to moderate demand for light offerings.  Choice is $1.22 higher at $265.05 and Select closed $4.67 lower at $233.90.  The Choice/Select spread is $31.15. Estimated cattle slaughter was 124,000 head – up 3,000 on the week and up 4,000 on the year. 

Lean hog futures were mixed, adjusting spreads.  The market is also looking to the final Quarterly Hogs and Pigs report of the year, which comes out on Friday.  February lean hogs closed $1.45 lower at $84.25 and April lean hogs closed $.82 lower at $92.17. 

Cash hogs closed mixed with a fairly light negotiated run.  Processors weren’t very aggressive in their procurement efforts and prices, and total numbers reflected that.  Demand for US pork on the global market and domestically has remained relatively strong.  And while that is expected to continue, there are concerns demand could wane if economies slow.  The industry is monitoring the availability of market-ready hogs and is looking ahead to Friday’s Quarterly Hogs and Pigs report from the USDA. Barrows and gilts at the National Daily Direct closed $.04 higher with a base range of $78 to $81 and a weighted average of $79.92 and the Western Corn Belt closed $1.54 lower with a weighted average of $79.80.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $58. At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate offerings at $40 to $52.  Barrows and gilts were steady with moderate demand for moderate offerings at $56 to $66.  Boars ranged from $15 to $20 and $10 to $13. 

Pork values closed lower – down $1.47 at $83.46.  Hams, bellies, loins, and ribs were all lower.  Picnics and butts were higher. Estimated hog slaughter was 489,000 head – up 8,000 on the week and up 11,000 on the year.  Monday’s hog slaughter has been revised to 479,000 head. 

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