Market News

Cash cattle trade picks up steam Friday

Chicago Mercantile Exchange live and feeder cattle futures fell sharply Friday, pressured by the week’s direct business and a big drop in the Dow Jones Industrial Average during the session, April live was down $4.67 at $232.22 and June was $4.25 lower at $229.15. March feeders were $6.22 lower at $355.42 and April was down $7.55 at $351.20.

Direct cash cattle trade activity picked up Friday with deals reported in parts of the South at $244, $5 lower than the previous week’s weighted averages. A few live deals were also reported in Nebraska at $243. Several bids were on the table, but producers weren’t willing to accept lower money.

At the Mid-Missouri Stockyards Cattle Auction, feeder steers over 450 pounds sold $2 to $15 higher with heifers over 400 pounds selling steady to $15 higher compared to the most recent sale. USDA says the supply was light with very good demand. Feeder supply included 47% steers and 24% of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 pounds brought $429. Feeder heifers at 455 pounds sold for $460.

Boxed beef closed higher with Choice up $1.88 at $379.77 and Select up $3.46 at $374.25. The Choice/Select spread was $5.52.

Estimated cattle slaughter was 86,000 head – down 3,000 on the week and down more than 21,000 on the year.

Lean hog futures were mixed on end of the month consolidation and the mixed cash business during Friday’s session. April was unchanged at $95.72 and May was down $.22 at $100.12.

Cash hogs were mixed with moderate opening negotiated numbers at the major direct markets. It looks like some buyers were able to use their leverage pick up some late week numbers, but the bulk of the business was done earlier in the week at generally higher prices with some of the best movement seen this year. The pork carcass cutout value finished Friday firm, closing just above the five-day average, reflecting the solid demand. Buyers and sellers will continue to monitor demand and supply, with the USDA’s Quarterly Hogs and Pigs update out in late March.

Barrows and gilts at the National Daily Direct closed $.62 lower with a base range of $85 to $91, with a weighted average price of $90.38. The Eastern Corn Belt had no comparison, but a weighted average of $88.41. The Iowa/Minnesota and Western Corn Belt were not reported due to confidentiality.

Butcher hogs were trending steady in Dorchester, Wisconsin with barrows and gilts at $60; sows at $62 to $68; boars at $22. At Illinois, slaughter sows were steady at $58 to $70 and boars were marked at $5 to $15.

Pork values closed higher – up $.39 at $97.77. Loins, picnics, hams and bellies were higher. Butts and ribs were lower.

Estimated hog slaughter was 477,000 head – up 34,000 on the week and down more than 2,500 on the year.