Market News

Cattle futures higher ahead of cash trade

At the Chicago Mercantile Exchange, cattle futures closed firm supported by wholesale values at midday and anticipated strength in the developing cash trade.  Feeder cattle futures were oversold and due for a bounce.  February live cattle closed $.42 higher at $125.55 and April live cattle closed $.42 higher at $126.50.  January feeder cattle closed $1.97 higher at $143.02 and March feeder cattle closed $2.15 higher at $143.65. 

Direct cash cattle trade improved some, but activity was still limited.  There were just a handful of deals reported in Texas at $123 live.  And the 63 sales were from Wednesday’s Fed Cattle Exchange.  Asking prices are holding firm at $126 live and $200 dressed.  Bids are at $122 live and $196 dressed.  The distance between the two could push significant trade volume until the end of the week. 

At the Kingsville Livestock Auction in Missouri, receipts are up on the week and down on the year.  Compared to the most recent sale steers and heifers were unevenly steady except for heifer calves under 500 pounds which sold with a noticeably lower undertone.  A quality run of feeders was on offer and allowed buyers to put together several loads of the same type and kind.  The USDA says demand was mostly moderate despite poor weather conditions, good in spots, but light for heifer calves under 500 pounds.  Feeder supply included 57 percent steers and 62 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 635 pounds brought $150 to $163.25 and feeder steers 802 to 825 pounds brought $138.25 to $145.35.  Medium and Large 1 feeder heifers 551 to 594 pounds brought $125 to $132.25 and feeder heifers $121.25 to $128.35.

Boxed beef closed firm to higher on moderate to fairly good demand and light offerings.  Choice closed $.87 higher at $217.21 and Select closed $.32 higher at $212.04.   The Choice/Select spread is $5.17. 

Estimated cattle slaughter is 117,000 head – down 3,000 on the week and up 2,000 on the year. 

Lean hog futures closed lower on lack of support from wholesale values and the weaker cash trade during the session.  Supply and demand worries continue to pressure prices.  February lean hogs closed $.70 lower at $60.77 and April lean hogs closed $1.25 lower at $64.80. 

Cash hogs closed higher with moderate negotiated purchase totals.  The supply of ready barrows and gilts is ample.  But demand worries are a factor limiting the ability of the market to move higher.  There’s still hope demand for US pork will increase on the global market as China continues to battle African Swine Fever and the threat of another round of harsh winter weather could force buyers’ to work a little harder when it comes to moving numbers this week.  Hog weights were up just slightly this week to 285.9 pounds, but receipts were 15,000 head less than a week ago. 

Barrows and gilts at the Iowa/Southern Minnesota closed $.52 higher with a range of $49.25 to $53.50 for a weighted average of $52.81; the Western Corn Belt closed $.67 higher with a range of $48 to $53.50 for a weighted average of $52.79; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.40 higher with a range of $48 to $53.50 for a weighted average of $52.49. 

Butcher hog prices at the Midwest cash markets are steady at $34.  At Illinois, slaughter sow prices are steady at $16 to $30 with light to moderate offerings.  Receipts are down on the week and the year.  Barrow and gilt prices are steady at $30 to $36 with moderate demand for moderate offerings.  Boars under 300 pounds were $10 to $14 and boars over 300 pounds were $6 to $8.

Pork values closed lower – down $.93 at $68.70.  Ribs, butts, bellies, and hams were all lower.  Loins and picnics were weak.  Estimated hog slaughter is 466,000 head – down 14,000 on the week and up 1,000 on the year.