Market News

Cattle futures waiting for widespread direct trade

Chicago Mercantile Exchange live cattle futures were mixed and feeders were modestly higher, getting ready for the week’s direct business. February live was down $.07 at $157.80 and April was $.05 lower at $161.77. January feeders were up $.37 at $183.47 and March was $.80 higher at $186.20.

Direct cash cattle markets generally remained at a standstill. There was light trade at $157 to $158 live and $248 dressed, but not enough to establish a trend. Asking prices were around $158+ live and $256 dressed, with no reported bids. Widespread trade will wait until Thursday or maybe even Friday, depending on packer demand. This week’s show list is larger than last week in all major feeding areas and weather is less of an issue for much of the region. The Fed Cattle Exchange is closed this week.

Boxed beef closed mixed with moderate movement. Choice was $.63 lower at $279.41 and Select beef was $1.64 higher at $247.28. The estimated cattle slaughter of 128,000 head was up 6,000 on the week and 10,000 on the year.

Last week in Missouri, feeders were mostly $2 to $6 lower. The USDA says supply and demand were light to moderate with lower than normal overall quality, but some load lots and a few packages of better quality feeders were mostly steady. Receipts were down on the week, up on the year. 54% of the Missouri feeder offering were steers and 54% of all feeder cattle weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds ranged from $165 to $197 and 810 to 850-pound steers brought $163 to $178.75. Medium and Large 1 feeder heifers weighing 500 to 600 pounds were reported at $146 to $192.50 and 600 to 700 pound heifers sold at $146 to $186.75.

Lean hog futures were mixed on spread trade, profit taking, and the bearish fundamentals during the session. February was down $.67 at $90.80 and April was up $.12 at $96.57.

Cash hogs were steady to lower with good closing negotiated numbers at the major direct markets. There have been calls for higher trade most of this week, but it looks like many buyers are comfortable with cutting back spending while still moving enough ready numbers to keep chain speed at an acceptable level. Still, there could be higher bids Thursday or Friday with another holiday shortened week next week.

National direct barrows and gilts closed $1.80 lower with a base price range of $70 to $80 for a weighted average of $76, while Iowa/Southern Minnesota was down $.28 at $75.57 and the Western Corn Belt was $.78 lower at $75.15. Midwest butcher hog markets are closed this week. Illinois direct sows were $1 lower at $38 to $50 with light demand for light offerings. Barrows and gilts were steady at $56 to $66 on moderate demand and offerings. Boars ranged from $10 to $20.

Pork closed $2.25 lower at $88.67. Picnics, hams, and bellies were down sharply, while loins, butts, and ribs were firm to up sharply. The estimated hog slaughter of 490,000 head was up 40,000 on the week and 17,000 on the year. Tuesday’s slaughter was revised to 482,000 head, 8,000 less than the initial estimate.