Market News

Live cattle futures mixed ahead of Friday’s On Feed numbers

At the Chicago Mercantile Exchange, live cattle were mixed and feeders were lower watching direct cash business develop.  Feeders had additional pressure from the higher move in corn. Markets are also looking ahead to Friday’s On Feed numbers  December live cattle closed $.32 higher at $151.67 and February lives closed $.60 higher at $154.85.  November feeders closed $.52 lower at $177.55 and January feeders closed $.82 lower at $179.25. 

It was an active Thursday for direct cash cattle business, with trade taking place across all feeding areas.  Live deals were marked at $148 in the South, those are $3 above last week’s weighted averages.   There was also some scattered trade in the North at $236 dressed and $150 to $152 live.  Look for at least additional business to develop before the end of the day Friday.  There was some very light, scattered direct cash cattle trade that took place on Wednesday with Southern live deals marked at $147, $2 higher than last week’s weighted averages.  There were also a handful of deals reported in the North at $232.

At the OKC West Livestock Auction in Oklahoma, compared to last week feeder steers were $2 to $5 higher.  Feeder heifers were mostly $5 to $8 higher.  Weaned steer calves were mostly $6 to $9 higher and heifer calves were $5 to $7 higher.  The USDA says demand was good for feeders and very good for weaned cattle.  Quality was average to attractive, and much the trade area received needed moisture over the weekend.  Feeder supply included 56% steers and 64% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 604 to 644 pounds brought $173 to $186.50 and feeder steers 651 to 690 pounds brought $172 to $185.  Medium and Large 1 feeder heifers 504 to 542 pounds brought $155.50 to $169 and feeder heifers 660 to 691 pounds brought $164 to $172. 

Boxed beef closed mixed with light to moderate demand for solid offerings.  Choice closed $.23 higher at $253.62 and Select closed $.11 lower at $222.08.  The Choice/Select spread is $31.54.  Estimated cattle slaughter was 128,000 head – up 1,000 on the week and up 6,000 on the year.

Lean hog futures were mostly higher, adjusting spreads. December lean hogs closed $.35 lower at $87.02 and February lean hogs closed $.10 higher at $89.10. 

Closing cash hog prices and pork cutout values were both unavailable due to packer submission issues.  Processors have been in this pattern of a couple of days of large purchases at sharply higher prices and then backing off their procurement efforts.  It wouldn’t be surprising to see cash prices move lower.  The industry is also watching the availability of market-ready hogs.  And while demand has been strong, there are concerns that long-term global economic slowdowns could impact demand and weaken prices. 

Illinois slaughter sow prices were steady with heavy demand for moderate offerings at $59 to $71.  Barrows and gilts were steady with moderate demand for moderate offerings at $58 to $68.  Boars ranged from $30 to $35 and $9 to $19. 

Estimated hog slaughter was 491,000 head – even on the week and up 19,000 on the year.