Market News

Midday cash livestock markets

Direct cash cattle markets are quiet. The big features to start the week will be the digestion of last week’s activity and the distribution of this week’s new showlist. Last week’s business was mostly at $119 to $120 on the live basis, generally steady to $1 higher than the previous week’s weighted average, and mostly $190 dressed, about steady with the week before. The USDA’s Cattle on Feed report showed a 1% decline in placements during January, the first year to year dip since August 2019, but the total number of cattle on feed at the start of February was still up 2% on the year. The U.S. has lifted its’ ban on beef from Brazil. The USDA’s attaché in Brazil projects 2020 beef production at a record large 10.550 million tons, up 3.4% from 2019, with exports of 2.53 million tons, compared to 2.314 million a year ago.

Boxed beef at midday is mixed with light to moderate movement. Choice was $1.60 higher at $206.69 and Select was $.50 lower at $201.20.

At the Lexington Livestock Market feeder cattle sale in Nebraska, compared to the previous week, steers weighing less than 700 pounds were steady to $5 higher and steers weighing more than 700 pounds were steady to $3 lower. Feeder heifers weighing less than 600 pounds were $3 to $6 higher and heifers weighing more than 600 pounds were $1 to $3 lower. The USDA says demand was good and receipts were up on the week. 53% of the offering were heifers and 69% of the run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds were reported at $154 to $169 and 700 to 800-pound steers sold at $144 to $153.10. Medium and Large 1 feeder heifers weighing 500 to 600 pounds ranged from $147 to $172 and 600 to 700-pound heifers brought $133.50 to $143.

Cash hogs are steady to higher, with a light to moderate opening negotiated run for the major direct markets. The USDA’s Cold Storage report is out this afternoon and is expected to show an ample amount of pork at the end of January. Ahead of the report, Allendale’s projection is 659 million pounds, which would be up sharply on both the month and the year. The industry is monitoring demand signals and the spread of coronavirus in China. Domestic demand continues to hold up relatively well and while the most recent export sales report was disappointing, that was before China rolled back tariffs and announced tariff waivers. The USDA’s attaché in Brazil sees 2020 pork production at 4.155 million tons, 4.5% higher than last year, with exports of 980 million tons, compared to 851 million in 2019. Brazil is expected to continue to be a significant competitor with the U.S. for market share in China, as both nations try to fill the shortfall caused by the African swine fever outbreak.

Pork at midday is up $1.13 at $66.13. Butts were $.75 higher and bellies jumped $6.30. Loins, picnics, ribs, and hams were weak.

National direct barrows and gilts opened $.80 higher at $45 to $52.50 with a weighted average of $50.55, while Iowa/Southern Minnesota is up $1.92 at $51.31 and the Western Corn Belt is $1.65 higher at $51.00. Butcher hogs at the Midwest cash markets have no recent comparison at $30. Illinois direct sows are steady at $17 to $26 on good demand for moderate offerings. Barrows and gilts are firm at $27 to $35 with moderate demand and offerings. Boars range from $5 to $13.