Market News

Cattle futures higher ahead of widespread direct business

At the Chicago Mercantile Exchange, live and feeder cattle were up ahead of the week’s direct business.  December live cattle closed $.62 higher at $185.40 and February live cattle closed $.77 higher at $186.72.  January feeders closed $1.67 higher at $244.02 and March feeders closed $1.25 higher at $241.75. 

Direct cash cattle trade activity was quiet again on Wednesday.  Bids remained elusive.  Asking prices were floated early at $190 to $192 live in the South, but still weren’t established in the North.  Look for more business to develop over the balance of the week.

At the Philip Livestock Auction in South Dakota, feeder steers 400 to 450 pounds were steady to $3 higher, steers 450 to 550 pounds were steady to $3 higher, steers 450 to 550 pounds were steady, steers 550 to 700 pounds were steady to $2 higher.  Feeder heifers 400 to 550 pounds were $2 to $4 higher, heifers 550 to 600 pounds were $2 to $3 lower, and heifers 800 to 850 pounds were $2 higher.  The USDA says demand was good for several long strings and many load lots and packages of feeder steers, feeder heifers, and replacement heifers.  All of which sold on a very strong, very active market.  Receipts were down on the week and the year.  Feeder supply included 65% steers and 29% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 510 to 548 pounds brought $313 to $334 and feeder steers 600 to 647 pounds brought $288 to $312.50.  Medium and Large 1 feeder heifers 508 to 549 pounds brought $288 to $318 and feeder heifers 614 to 649 pounds brought $272 to $280.

Boxed beef closed lower with light demand for solid offerings.  Choice was $1.62 lower at $315.59 and Select closed $2.04 lower at $283.20.  The Choice/Select spread is $32.39. Estimated cattle slaughter was 125,000 head – up 1,000 on the week and down less than 500 on the year.

Lean hog futures ended the day mostly higher on spread trade, along with stronger cash and wholesale business.  December lean hogs closed $1.00 higher at $82.12 and February lean hogs closed $.65 higher at $85.15. 

Cash hogs closed lower with a moderate negotiated run. Demand for U.S. pork on the global market has been strong, and that’s helping to provide price support.  Domestic demand has been much more inconsistent, and that adds uncertainty to the market.  The industry continues to monitor the availability of market-ready hogs and hog weights. Processors pulled back on their procurement efforts Friday afternoon and were able to move needed numbers without having to bid up. Barrows and gilts at the National Daily Direct closed $.65 lower with a base range of $77 to $87 and a weighted average of $82.72; the Iowa/Minnesota closed $1.71 lower with a weighted average of $82.53; the Western Corn Belt closed $.54 lower with a weighted average of $83.04; the Eastern Corn Belt had no comparison but a weighted average of $80.96.

Butcher hog prices at the Midwest cash markets are steady at $63. At Illinois, slaughter sow prices were $5 lower with moderate demand for light offerings at $51 to $61.  Barrows and gilts are $1 higher with moderate demand for moderate offerings at $46 to $56.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed higher – up $.73 at $102.15.  Bellies were sharply higher.  Ribs were higher.  Butts, hams, picnics, and loins are all lower. Estimated hog slaughter was 488,000 head – even on the week and down more than 2,500 on the year.