Market News

Cattle, lean hog futures kickoff the week lower

At the Chicago Mercantile Exchange, live and feeder cattle futures were lower, getting ready for widespread direct business and Friday’s USDA Cattle on Feed Report. April live was down $.72 at $163.55 and June was $.45 lower at $158.20. April feeders were $.57 lower at $197.07 and May was down $1.17 at $202.40.

Direct cash cattle trade ended Monday quiet. Formula totals for last week were higher in all three major feeding states: Kansas, Nebraska and Texas. Total trade volume was mixed, higher in the South, but lower in Nebraska: New showlists appear to be somewhat lower in Texas, and lower in Kansas and Nebraska/Colorado. Bids and asking prices have yet to be established, and significant trade volume will likely be delayed until late in the week.

At the Oklahoma National Stockyards, compared to last week, feeder cattle and calves steady, however steers over 800 pounds and heifers over 700 pounds were not well tested.  Steer and heifer calves were steady. The USDA says demand was good for all classes.  Weather remains cold with flurries in parts of the state.  Cooler temperatures are expected to hang around and there is a chance of precipitation during the midweek.  Receipts were down on the week and year.  54 percent of the supply were steers and 51 percent of the supply was over 600 pounds.

Medium and Large 1 feeder steers 451 to 495 pounds brought $240 to $270 with an average price of $258.23. Feeder steers 703 to 749 pounds brought $180 to $191 with an average price $187.54 Medium and Large 1 Feeder heifers 600 to 647 pounds brought $175 to $205 with an average price $193.09. Feeder heifers 810 to 834 pounds brought $166 to $168 with an average price of $166.79.

Boxed beef cutout values closed mixed with Choice $.05 lower at $284.86.  Select is $2.08 higher at $273.62.  The Choice/Select Spread is $11.24

Estimated cattle slaughter is 125,000 unchanged on the week, but up 2,000 on the year.

Lean hog futures were mostly lower on the steady to lower cash during the session and technical activity. April was down $1.22 at $86.22 and June was $.17 lower at $102.60.Cash hogs closed lower.

The cash hog market continues its inconsistent trend.  With more available market-ready hogs, processors are running the show.  When more numbers are needed, they’re more aggressive and bidding up to move big runs, but when they have what they need, they’re backing off.  Demand, overall, has been relatively strong on the global market and domestically and that’s helping provide some needed support in the market. 

Barrows and gilts at the National Daily Direct are $2.77 lower with a base range of $66.40 to $82 with a weighted average price of $75.40; Iowa/Minnesota $1.67 lower with a weighted average price of $77.21; Western Corn Belt $1.29 lower with a weighted average price of $77.17; Eastern Corn Belt did not report due to confidentiality reasons.

Butcher hog prices are steady with barrows and gilts at $58 and boards at $16.

Pork values are $1 higher.  Loins, butts, picnics, ribs and hams are higher, bellies are lower.

Estimated hog is 484,000 – down 23,000 on the week and 18,000 on the week.