Market News

Cattle futures higher heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were up on technical buying. February live cattle closed $.40 higher at $199.55 and April lives closed $.80 higher at $196.52.  March feeder cattle closed $3.00 higher at $267.97 and April feeder cattle closed $2.72 higher at $267.97. 

Direct cash cattle trade was pretty quiet again Thursday.  For the week, deals in the South have ranged from $202 to $203, $3 to $4 lower than the previous week’s weighted averages.  A handful of dressed deals in the North have been reported in parts of Nebraska at $320, but that’s not near enough business to establish an accurate price trend for the week.

At the Hub City Livestock Auction in South Dakota, steers 550 to 859 pounds were unevenly steady, except steers 600 to 649 pounds were $5 to $7 lower.  Heifers 500 to 649 pounds were $10 to $12 lower, heifers 650 to 799 pounds were mostly steady.  The USDA says demand for the large offering of loads and packages of mostly home-raised cattle was good.  There were many attractive quality cattle to choose from, including several loads of reputation replacement heifers, which were met very good demand. The market was active.  Receipts were down on the week and the year.  Feeder supply included 61% steers and 83% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 651 to 699 pounds brought $305 to $332 and feeder steers 750 to 791 pounds brought $277 to $297.  Medium and Large 1 feeder heifers 650 to 695 pounds brought $283 to $310 and feeder heifers 701 to 749 pounds brought $259 to $283.

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice is $1.86 lower at $317.40 and Select is $.70 higher at $309.84.  The Choice/Select spread is $7.56.  Estimated cattle slaughter was 117,000 head – down 1,000 on the week and down more than 6,000 on the year.

Lean hog futures ended the day lower amid ongoing demand concerns. February lean hogs closed $.07 lower at $89.37 and April lean hogs closed $1.22 lower at $93.10. 

Cash hogs closed higher with a moderate negotiated run. Processors were more aggressive in their procurement efforts and were bidding up to move needed numbers.  Slaughter pace has been higher in recent weeks. The industry continues to monitor the availability of market-ready hogs and hog weight to gauge pork supplies.   Demand for U.S. pork on the global market has been relatively strong, and that has been helping provide price support. Barrows and gilts at the National Daily Direct closed $1.50 higher with a base range of $82 to $92 and a weighted average of $90.75; the Iowa/Minnesota closed $.48 higher with a weighted average of $90.73; the Western Corn Belt closed $.52 higher with a weighted average of $90.73; the Eastern Corn Belt had no comparison, but a weighted average of $90.82.

Butcher hog prices at the Midwest cash markets are steady at $62. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $49 to $61.  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 higher – up $2.24 at $100.87.  Hams, bellies, ribs, loins, and butts were all higher.  Picnics were lower. Estimated hog slaughter was 487,000 head – up 6,000 on the week and down more than 2,000 on the year.