Market News

Cattle futures gain ahead of week’s direct trade

Chicago Mercantile Exchange live and feeder cattle futures were up, with boxed beef higher at midday, getting ready for the week’s direct business. Feeders had additional buying interest tied to the lower move in corn. December live was up $.70 at $184.40 and February was $.75 higher at $186.12. January feeders were $1.32 higher at $243.57 and March was up $1.67 at $241.72.

Direct cash cattle markets remained at a standstill. Asking prices surfaced at $188 to $189 on the live basis in the south but are not established for the dressed basis in the north, with no reported bids. It looks like widespread trade will wait until the second half of the week. This week’s show list looks mixed, larger in Texas, smaller in Colorado, Kansas, and Nebraska.

At the Imperial Livestock Market feeder cattle sale in Nebraska, there was no comparison to the last reported test two weeks ago. The USDA says receipts were down from both that prior test and a year ago. 94% of the offering were feeder cattle, 56% of those were steers, and 19% of all feeders weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 400 to 500 pounds sold at $325 to $365 and 500-to-600-pound steers ranged from $280 to $319. Medium and Large 1 feeder heifers weighing 400 to 500 pounds were reported at $283 to $311 with 500-to-600-pound heifers at $254 to $300.

Boxed beef closed mixed with moderate movement. Choice was up $.06 at $308.27 and Select beef was down $1.92 at $279.92. The estimated cattle slaughter of 121,000 head was down 3,000 on the week and 6,710 on the year.

Lean hog futures ended what had been a mixed session up modestly on the steady to higher cash during the session and technical buying. Contracts did see periodic pressure from the week’s lower trend in pork and the ongoing uncertainties about sustained domestic demand. December was up $.57 at $82.35 and February was $.40 higher at $86.32.

Cash hogs were steady to higher with moderate closing negotiated numbers at the major direct markets. Most buyers are likely in need of some near-term supplies after slow trade last week and a slow start to this week. There is talk market ready numbers are tighter than previously projected, but buyers could be able to apply more leverage and limit spending if the wholesale market continues to slide.

National direct barrows and gilts closed $1.27 higher with a base price range of $76 to $88 for a weighted average of $84.79, with Iowa/Southern Minnesota up $1.60 at $85.52 and the Western Corn Belt $1.02 higher at $84.90. Butcher hogs at the Dorchester, Wisconsin and Garnavillo, Iowa markets were steady at $60. Illinois direct sows were $1 higher at $51 to $62 with moderate demand for light offerings. Barrows and gilts were steady at $46 to $56 on moderate demand and offerings. Boars ranged from $15 to $30.

Pork closed $3.78 lower at $97.68 on declines in the loins, ribs, hams, and bellies, which canceled out the firm butts and picnics. The estimated hog slaughter of 489,000 head was up 1,000 on the week and 14,648 on the year.