Market News

Cattle futures higher ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle were sharply higher ahead of the week’s direct cash business.  February live cattle closed $1.15 higher at $189.07 and April lives closed $1.02 higher at $191.15.  January feeders closed $2.45 higher at $259.30 and March feeders closed $1.72 higher at $257.27. 

Direct cash cattle trade activity was quiet Tuesday.  Bids didn’t surface.  Asking prices were around $192 to $194 live in the South, but still weren’t established in the North.  Significant trade volume will likely be delayed until later in the week.

At the Joplin Regional Stockyards in Missouri, feeder steers under 650 pounds were $8 to $25 higher.  Steers over 650 pounds sold from $8 lower to $4 higher.  Feeder heifers under 550 pounds were $3 to $20 higher and heavier weights were steady to $8 lower.  The USDA says supply was heavy with very good demand.  Yearling cattle were down compared to the pervious week’s yearling sale.  Receipts were down on the week, but up on the year.  Feeder supply included 63% steers and 60 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $285 to $320 and feeder steers 962 to 980 pounds brought $232.50 to $243.  Medium and Large 1 feeder heifers 552 to 597 pounds brought $264 to $292 and feeder heifers 601 to 648 pounds brought $253 to $283.

Boxed beef closed sharply lower and lower on light demand for moderate offerings. Choice was $3.68 lower at $309.33 and Select closed $1.67 lower at $275.33.  The Choice/Select spread is $34.00.

Estimated cattle slaughter was 125,000 head – down 1,000 on the week and down nearly 2,000 on the year.

Lean hog futures ended the day are mixed on spread trade, with pork lower during the session. February lean hogs closed $.10 lower at $87.85 and April lean hogs closed $.15 lower at $92.32. 

Cash hogs closed sharply higher with a huge negotiated run.  Processors were much more aggressive in their procurement efforts Tuesday and were bidding up to move needed numbers.  Demand for U.S. pork on the global market remains strong, which has been helping provide support to the market, but domestic demand remains inconsistent.  The industry is also monitoring the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $2.92 higher with a base range of $76 to $90 and a weighted average of $86.89; the Iowa/Minnesota closed $4.12 higher with a weighted average of $88.69; the Western Corn Belt closed $4.80 higher with a weighted average of $88.77; the Eastern Corn Belt had no comparison but a weighted average of $85.03.

Butcher hog prices at the Midwest cash markets are steady at $53. At Illinois, slaughter sow prices are $4 lower with moderate demand for moderate offerings at $39 to $51.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $20 to $30 and $15 to $25.

Pork values closed sharply lower – down $3.05 at $89.61.  Bellies were sharply lower.  Hams, ribs, and butts were lower.  Loins and picnics were higher. Estimated hog slaughter was 487,000 head – down 2,000 on the week and up about 500 on the year.