Market News

Cattle, hog futures find support heading into midweek

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, supported by the recent strength in boxed beef prices, getting ready for the week’s direct business, and Friday’s On Feed numbers from the USDA.  April live cattle closed $.45 higher at $165.10 and June live cattle closed $.75 higher at $160.87.  March feeder cattle closed $.35 higher at $186.87 and April feeder cattle closed $.35 higher at $190.80. 

It was another quiet day for direct cash cattle trade activity.  Bids didn’t surface.  Asking prices were around $164-plus live in the South, while the North was not established.  If this week follows the trend of recent weeks, significant trade volume will likely be delayed until sometime Thursday or Friday. Showlists this week are mixed – higher in Texas, somewhat higher in Kansas, but lower in Nebraska and Colorado. There were a handful of deals reported in the North on Monday at $257 dressed and $156 live, but not near enough sales to establish a trend for the week. 

At the Callaway Livestock Center in Missouri, there was a light test of 400 to 450-pound steer calves sold with a higher undertone, steer calves 500 to 550 pounds were $5 to $10 higher, and steers over 700 pounds were not well tested.  Feeder heifers 400 to 500 pounds were firm with spots of $5 higher, heifers 500 to 600 pounds sold with a higher undertone, and heifers over 600 pounds also sold with a higher undertone with few comparisons.  The USDA says demand was good on a moderate supply.  There was a nice, attractive offering of steer and heifer calves 450 to 700 pounds.  Receipts were up on the week and the year.  Feeder supply included 59% steers and 44% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 549 pounds brought $220 to $241.25 and feeder steers 929 pounds brought $174.75.  Medium and Large 1 feeder heifers 552 to 597 pounds brought $189 to $207 and feeder heifers 752 to 766 pounds brought $171 to $172. 

Boxed beef closed sharply higher on solid demand for moderate offerings.  Choice was $4.31 higher at $287.20 and Select closed $2.79 higher at $270.84.  The Choice/Select spread is $16.36. Estimated cattle slaughter was 127,000 head – up 2,000 on the week and the year. 

Lean hog futures ended the day higher, supported by stronger pork values during the session.  April lean hogs closed $3.82 higher at $89.10 and May lean hogs closed $2.77 higher at $97.17. 

Cash hogs closed higher with a huge negotiated run. Processors continue to move at their own pace.  Getting more aggressive in their procurement efforts and bidding up when they need hogs, like today and backing off when they don’t.  The only consistency in the cash hog market right now is that it is anything but consistent.  Demand for US pork has been strong, helping to provide price support.  And the industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.15 higher with a base range of $75 to $82 and a weighted average of $78.12; the Iowa/Minnesota closed $1.08 higher with a weighted average of $79.51; the Western Corn Belt closed $1.19 higher with a weighted average of $79.53; there was no comparison at the Eastern Corn Belt but a weighted average of $76.99.

Butcher hog prices at the Midwest cash markets are steady at $58 in Dorchester, WI and at $66 in Garnavillo, Iowa.

Pork values closed sharply lower, down $4.71 at $83.01. Bellies dropped nearly $27 on Tuesday.  Ribs, butts, and loins were also lower.  Picnics and hams were higher. Estimated hog slaughter was 479,000 head, up 2,000 on the week and up 8,000 on the year.