Cattle futures higher to start the week

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At the Chicago Mercantile Exchange, live and feeder cattle were higher on oversold signals. December live cattle closed $2.15 higher at $216.20 and February live cattle closed $2.90 higher at $220.10. January feeder cattle closed $5.80 higher at $324.17 and March feeder cattle closed $6.35 higher at $320.20.

It was a typically quiet start to the week for direct cash cattle trade activity. Showlists are mixed. Lower in Nebraska and Texas, but higher in Kansas. Bids and asking prices did not surface. Look for the bulk for the week’s trade to hold out until sometime Thursday or Friday.

At the close, at the Joplin Regional Stockyards in Missouri, feeder steers weighing less than 550 pounds were steady to $15 higher, while heavier weights were $5 to $15 lower. Feeder heifers were $2 to $12 lower. The USDA says supply was moderate, but was met with good demand. Reciepts were down on the week and the year. Feeder supply included 69 percent steers with 62 percent of the offering weighing more than 600 pounds. Medium and Large 1 feeder steers 500 to 546 pounds brought $390 to $450 and feeder steers 611 to 639 pounds brought $365 to $387. Medium and Large 1 feeder heifers 500 to 538 pounds brought $355 to $385 and feeder heifers 651 to 648 pounds brought $335 to $342.

Boxed beef was higher with solid demand for fairly light offerings. Choice was $1.95 higher at $362.74 and Select was $.17 higher at $353.73. The Choice/Select spread is $9.01. Estimated cattle slaughter was 107,000 head, up 3,000 on the week and down more the 5,000 on the year.

Lean hog futures were mixed, adjusting spreads. December lean hogs closed $2.35 higher at $55.87 and February lean hogs closed $2.12 higher at $60.82.

Cash hogs closed lower with a solid negotiated run. The slide in the cash hog market continues. With ample supplies of market-ready hogs, processors continue to have leverage and can move needed numbers without having to get aggressive in their procurement efforts. This comes at a time when there is a lot of uncertainty surrounding long-term demand strength, both on the global market and domestically. Barrows and gilts at the National Daily Direct closed $1.49 lower with a base range of $40 to $49 and a weighted average of $44.82; the Iowa/Minnesota had no comparison but a weighted average of $44.70; the Western Corn Belt had a weighted average of $44.56. Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets were $2 lower at $46. At Illinois, slaughter sows were $2 lower with moderate demand for light offerings art $39 to $51. Barrows and gilts were $2 lower with moderate demand for moderate offerings at $32 to $40. Boars ranged from $25 to $35 and $15 to $20.

Pork values closed firm, up $.16 at $70.81. Ribs and loins were up. Picnics and butts were sharply lower, with hams and bellies down. Estimated hog slaughter was 496,000 head, up 4,000 on the week and up about 4,500 on the year.