Market News

Cattle futures fall further, hogs finish higher

Chicago Mercantile Exchange live and feeder cattle were sharply lower with another round of pressure from the slow resumption of cattle imports from Mexico and overbought signals. The higher move in corn was also bearish for feeders. April live was down $1.50 at $198.65 and June was $1.25 lower at $193.22. March feeders were $2.25 lower at $268.25 and April was down $2.20 at $267.62.

Direct cash cattle business was at a standstill. A few asking prices were reported at $208 on the live basis in the south, nothing yet for the north, with widespread activity expected to wait until at least Wednesday. This week’s show list is mixed, at least somewhat larger in Colorado, Kansas, and Nebraska, and smaller in Texas. Live cattle imports from Mexico are resuming slowly but should alleviate some of the supply issues that have pushed cash and wholesale prices sharply higher recently. The 30-day pause in U.S. tariffs on Mexico and Canada is viewed as a positive for export demand and the retaliatory measures by China don’t currently include U.S. meats.

Boxed beef closed lower with moderate movement. Choice was down $1.26 at $330.73 and Select beef was $2.43 lower at $317.41 for a spread of $13.32. The estimated cattle slaughter of 122,000 head was down 2,000 on the week and 3,219 on the year.

At the Joplin Regional Stockyards feeder cattle sale in Missouri, compared to the previous test, steers and heifers ranged from $7 lower to $5 higher. The USDA says there was moderate demand for a heavy supply of mostly plain type cattle, with receipts down on the week and the year. 59% of the run were feeder steers and 68% of all feeder cattle weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds ranged from $290 to $332 with 800-to-900-pound steers at $258 to $275. Medium and Large 1 feeder heifers weighing 600 to 700 pounds sold at $263 to $284 and 700-to-800-pound heifers were reported at $244 to $271.

Lean hogs futures were up sharply on domestic and export demand expectations. The pause in U.S. tariffs on Canada and Mexico and the lack of U.S. meats in China’s retaliatory measures should limit near-term impacts on U.S. pork exports. April live was $3.40 higher at $89.75 and May was up $3.02 at $93.75.

Cash hogs were steady to higher with light to moderate closing negotiated movement at the major direct markets. Heading into midweek, bids are expected to rise with most buyers probably in need of some near-term numbers after a couple of days of fairly slow trade. Domestic demand continues to be inconsistent, but there are some signs of improved wholesale business because of relatively high beef prices. Export demand continues to be solid.

National direct barrows and gilts had no recent comparison with a base price range of $79 to $87 for a weighted average of $85.40. The major regional direct markets were not reported due to confidentiality. Iowa/Southern Minnesota had a five-day rolling average of $84.34, with the Western Corn Belt at $84.27 and the Eastern Corn Belt at $82.16. Butcher hogs in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $60. Illinois direct sows were $3 higher at $47 to $59 on moderate demand for moderate offerings. Barrows and gilts were steady at $48 to $58 with moderate demand and offerings. Boars ranged from $15 to $30.

Pork closed $.95 higher at $94.76. Loins, butts, picnics, ribs, and hams were up modestly to sharply, canceling out a lower move in bellies. The estimated hog slaughter of 490,000 head was up 6,000 on the week, but down 1,234 on the year.