Market News

Cattle futures drop amid lingering import concerns

At the Chicago Mercantile Exchange, live and feeder cattle were sharply lower on technical liquidation and the talk that feeder cattle imports from Mexico could resume.  December live cattle closed $4.42 lower at $227.77 and February live cattle closed $5.02 lower at $225.37.  November feeder cattle closed $7.60 lower at $334.97 and January feeder cattle closed $7.30 lower at $329.22. 

Direct cash cattle trade activity was quiet again Tuesday.  Bids and asking didn’t surface.  If trade follows the trend of recent weeks, look for the bulk of business to take place sometime Thursday or Friday. 

At the Callaway Livestock Center in Missouri, steer calves weighing less than 700 pounds and heifer calves weighing less than 600 pounds were mostly $20 to $40 higher, gaining back much of what it lost a week prior.  Feeder steers were $15 to $30 higher and heifers weighing more than 600 pounds were very lightly tested, but sold with a higher undertone.  The USDA says demand was good to very good on the pot loads of yearlings.  Receipts were up on the week and the year.  Feeder supply included 66 percent steers with 60 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 600 to 637 pounds brought $393 to $409 and feeder steers 865 to 895 pounds brought $337.75 to $350.  Medium and Large 1 feeder heifers 554 to 587 pounds brought $367 to $399 and feeder heifers 600 to 614 pounds brought $343 to $351. 

Boxed beef was mixed with light and moderate demand for solid offerings.  Choice was $1.67 lower at $377.58 and Select was $1.32 higher at $361.25.  The Choice/Select spread is $16.33. Estimated cattle slaughter was 118,000 head, down 1,000 on the week and down more than 7,000 on the year. 

Lean hog futures closed lower, contracts were pressured by the midday drop in pork and spillover from cattle. December lean hogs closed $.67 lower at $79.92 and February lean hogs closed $1.27 lower at $80.92. 

Cash hogs closed mixed with a big negotiated run.  The cash hog market continues to struggle with consistency.  Processors were more aggressive again in their procurement efforts to move needed numbers.  There continues to be a large focus on demand.  However, crucial export and trade data that helps provide some certainty around global demand is missing as the government shutdown is ongoing.  The trade is also watching the available supplies of market-ready hogs and hog weights, which have been on the rise. Barrows and gilts at the National Daily Direct closed $.05 higher with a base range of $80 to $87 and a weighted average of $84.71; the Iowa/Minnesota closed $.22 lower with a weighted average of $84.54; the Western Corn Belt closed $.05 higher with a weighted average of $84.81.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at midday at $68. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $55 to $67.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $64.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values were sharply lower, down $2.48 at $99.17.  Picnics and loins were sharply lower.  Hams, bellies, and butts were also lower.  Ribs were higher. Estimated hog slaughter was 488,000 head, up 2,000 on the week and up about 1,000 on the year.