Market News

Live cattle mostly higher, hogs higher ahead of USDA reports

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were higher waiting for direct cash business to develop.  Boxed beef was sharply higher at midday and traders are looking to Friday’s Cattle on Feed numbers. 

A light direct cash cattle trade took place in the North.  Dressed deals were at $249, $1 higher than last week’s weighted averages basis in Nebraska.  The South remains in a standoff.  Asking prices were firm at $156 to $157 live in the South and $249-plus dressed in the North.  The weather, Friday’s Cattle on Feed report, and the holiday break are definitely impacting business this week. 

At the Huss Livestock Market in Nebraska, compared to last week steers under 650 pounds were steady to $5 higher and steers 650 to 900 pounds were steady to $4 lower.  Heifers over 550 pounds were steady to $3 lower.  The USDA says demand was moderate to good from the buyers in person and online.  Receipts were down on the week and the year.  Feeder supply included 63% steers and 78% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 756 to 798 pounds brought $178 to $183 and feeder steers 813 to 833 pounds brought $179 to $185.  Medium and Large 1 feeder heifers 657 to 689 pounds brought $169 to $175 and feeder heifers 751 to 757 pounds brought $169.50 to $167. 

Boxed beef closed higher on strong demand for light offerings.  Choice closed $.35 higher at $265.21 and Select closed $5.52 higher at $241.81.  The Choice/Select spread is $23.40. Estimated cattle slaughter was 113,000 head, down 9,000 on the week and down 2,000 on the year. 

Lean hog futures ended the day higher, supported by sharply higher pork values and demand optimism.  Traders are also looking to Friday’s Quarterly Hogs and Pigs report.   

Cash hogs closed lower with a very light negotiated run.   Processors haven’t been aggressive in their procurement efforts this week, which wasn’t a surprise on Thursday considering the major winter storm that brought bitterly cold temperatures to the middle of the country.  The industry is looking to Friday’s Quarterly Hogs and pigs report. Barrows and gilts at the National Daily Direct closed $.44 lower with a base range of $75 to $80 and a weighted average of $79.08.  Prices at the regional direct markets were not reported due to confidentiality. 

Butcher hogs at the Midwest cash markets were steady at midday at $58. At Illinois, slaughter sow prices were steady with light demand for light offerings at $39 to $42.  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 sharply higher – up $6.31 at $88.76.  All of the primals were higher, with bellies up more than $17. Estimated hog slaughter was 259,000 head – down 216,000 on the week and down 195,000 on the year.  Wednesday’s hog slaughter has been revised to 450,000 head.