Market News

Cattle, hog futures higher ahead of USDA reports

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher ahead of direct cash business and the USDA reports that are being released Thursday and Friday.  February live closed $2.12 higher at $157.70 and April live closed $1.52 higher at $161.17.  January feeders closed $.20 higher at $183.82 and March feeders closed $.70 higher at $185.72. 

Another relatively quiet day for direct cash cattle business.  Packer inquiry did improve with a few bids that were floated at $153 live in the South, but that was it as the rest of cattle country was quiet.  Asking prices were firm in the South at $156 to $157 live, but nothing surfaced in the North. 

At the Winter Livestock Auction in Dodge City, Kansas, steers and heifers 400 to 900 pounds were unevenly steady on light receipts.  The USDA says demand was moderate.  Feeder supply included 59% steers and 53% of the offering was over 600 pounds.  Receipts were down on the week and up on the year.  Medium and Large 1 feeder steers, thin fleshed, 610 to 623 pounds brought $180 to $189 and feeder steers 880 to 897 pounds brought $169 to $178.50.  Medium and Large 1 feeder heifers 569 to 580 pounds brought $170.50 to $176.50 and feeder heifers 600 to 630 pounds brought $156.50 to $166.   

Boxed beef closed mixed on light to moderate demand for light offerings.  Choice closed $.19 lower at $264.86 and Select closed $2.29 higher at $236.29.  The Choice/Select spread is $28.57. Estimated cattle slaughter was 122,000 head – up 4,000 on the week and even on the year. 

Lean hog futures closed higher on demand optimism and position squaring ahead of Friday’s Quarterly Hogs and Pigs report.  February lean hogs closed $4.15 higher at $88.40 and April contracts closed $3.10 higher at $95.27. 

Cash hogs closed lower with a fairly light negotiated run.  Processors have not been aggressive in their procurement efforts this week.  Which is somewhat surprising as many will likely want to have their desired numbers locked in ahead of the long holiday weekend.  Some of the sluggish interest could be because of the pending winter storms which are expected to hit much of the country.  The industry continues to monitor the availability of market-ready hogs.  Barrows and gilts at the National Daily Direct closed $.40 lower with a base range of $76 to $80 and a weighted average of $79.52; the Iowa/Minnesota had no comparison but a weighted average of $79.39; the Western Corn Belt closed $.55 lower with a weighted average of $79.25.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady to $58. At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate offerings at $39 to $51.  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 $1.01 at $82.45.  Bellies and picnics were sharply lower.  Butts and ribs were lower.  Loins and hams were higher. Estimated hog slaughter was 460,000 head – down 30,000 on the week and down 5,000 on the year.