Market News

Cattle, hog futures higher post-election

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct business, supported by higher boxed beef and the broader markets.  December live cattle closed $.05 higher at $107.87 and February live cattle closed $.47 higher at $110.77.  November feeder cattle closed $1.57 higher at $137.70 and January feeder closed $1.97 higher at $135.15. 

Direct cash cattle trade activity picked up Wednesday afternoon.  Live deals in the South ranged from $106 to $107 and dressed business in the North ranged from $160 to $164.  Both live and dressed deals are higher than the very light, scattered trade that took place last week.  Look for more business to develop on Thursday or Friday.   

At the Ozarks Regional Stockyards in Missouri, compared to last week steers and heifers sold $2 to $14 higher.  The USDA says demand was good and supply was moderate.  Receipts were up on the week and down on the year.  Feeder supply included 47 percent steers and 35 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $128 to $145 and feeder steers 650 to 689 pounds brought $124 to $136.  Medium and Large 1 feeder heifers 502 to 547 pounds brought $119 to $137 and feeder heifers 555 to 598 pounds brought $122.50 to $135. 

Boxed beef closed higher with good demand for moderate offerings.  Choice is $.75 higher at $210.19 and Select closed $1.60 higher at $197.05.  The Choice/Select spread is $13.14.  Estimated cattle slaughter is 119,00 head – up 1,000 on the week and down 1,000 on the year. 

Lean hog futures were supported by the higher wholesale values and the broader markets.  December lean hogs closed $.95 higher at $66.35 and February lean hogs closed $1.47 higher at $67. 

Cash hogs closed higher with a strong negotiated run.  Packers bid up Wednesday to move their desired numbers.  However, the heavy supplies and demand uncertainty makes it difficult for prices to steadily move higher.  The availability of market-ready barrows and gilts is more than ample and daily slaughter totals continue to push higher, adding more pork to an already saturated market.  Hog weights this week jumped to 287.3 pounds, that’s up 1.4 pounds on the week and up 0.6-pounds on the year. Barrows and gilts at the National Daily Direct closed $1.49 higher with a base range of $56 to $65.50 and a weighted average of $61.28; the Iowa/Minnesota closed $2.47 higher with a weighted average of $61.96; the Western Corn Belt closed $2.26 higher with a weighted average of $61.93.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $40.  At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $26 to $40.  Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $37 to $42.  Boars ranged from $5 to $8. 

Pork values closed weak – down $.58 lower at $82.41.  Bellies and loins were sharply lower.  Butts and ribs were lower.  Picnics closed firm and hams closed sharply higher. Estimated hog slaughter is 489,000 head – up 4,000 on the week and down 4,000 on the year.