Market News

Cattle, hog futures under pressure to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct cash business.  February live cattle closed $1.05 lower at $156.85 and April lives closed $.92 lower at $160.87.  March feeders closed $1.45 lower at $184.77 and April feeders closed $.85 lower at $188.77. 

It was a quiet start to the holiday-shortened week for direct cash cattle business.  Showlists this week are higher across all major feeding areas.  Bids and asking prices didn’t surface Tuesday and significant trade volume will likely be delayed until midweek or later. 

At the Callaway Livestock Center in Missouri, compared to the most recent sale steer calves under 600 pounds had a light test and were met with a lower undertone.  Feeders over 600 pounds had a firm undertone.  Feeder heifers 450 to 700 pounds were steady to firm.  The USDA says the main attraction on Monday was the 11 potloads of yearling steers and several part loads of good quality black yearlings, all of which were met with good demand.  Feeder supply included 73% steers and 69% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 708 to 738 pounds brought $173.50 to $180.50 and feeder steers 919 to 937 pounds brought $175 to $177.10.  Medium and Large 1 feeder heifers 515 to 546 pounds brought $174 to $185 and feeder heifers 554 to 597 pounds brought $171 to $180. 

Boxed beef closed sharply higher on strong demand for fairly light offerings.  Choice closed $4.97 higher at $286.95 and Select closed $3.70 higher at $254.63.  The Choice/Select spread is $32.32.  Estimated cattle slaughter was 126,000 head – down 2,000 on the week and up 10,000 on the year. 

Lean hog futures were pressured by lower pork values during the session and long-term demand uncertainties. February lean hogs closed $2.62 lower at $85.07 and April lean hogs closed $1.50 lower at $93.80.   

Cash hogs had no comparison with a light negotiated run.  After two weeks of sluggish business due to the holidays and weather, processors have been slow to pick up their procurement efforts and prices have reflected that.  While demand for US pork on the global market and domestically has remained strong, the industry is concerned additional slowdowns to the global economic picture could weaken demand and ultimately push prices lower. Barrows and gilts at the National Daily Direct had a base range of $68 to $80 with a weighted average of $74.69; the Iowa/Minnesota had a weighted average of $75.61; the Western Corn Belt had a weighted average of $75.45; the Eastern Corn Belt had a weighted average of $74.61.

Butcher hog prices at the Midwest cash markets are steady at $58. At Illinois, slaughter sow prices were $1 lower with light demand for light offerings at $35 to $47.  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 $1.90 at $86.  Bellies, hams, ribs, and picnics were all lower.  Loins and butts were higher. Estimated hog slaughter was 483,000 head – up 1,000 on the week and up 17,000 on the year.