Market News

Cattle futures higher to end the week

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher and sharply higher on an oversold bounce.  December live cattle closed unchanged at $182.95 and February live cattle closed $.15 higher at $185.25.  January feeder cattle closed $4.02 higher at $247.22.  

There was a light round of direct cash cattle business that took place throughout the week.  Dressed deals in the North were at $290, $3 lower than the prior week’s weighted average basis.  Live deals were at $185, $2 lower than the previous week’s weighted averages.  

At the Valentine Livestock Auction, in Nebraska, the spring calf auction consisted of weaned and non-weaned offerings that came off dry Sandhill grass.  The USDA says demand was good with several buyers present.  Steers and heifers 500 pounds were sharply higher.  Steers 550 pounds were $5 higher and 450 pound heifers were steady.  Receipts were down on the week and the year.  Feeder supply included 58% steers and 18% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 507 to 539 pounds brought $330.50 to $340.50 and feeder steers 602 to 630 pounds brought $295 to $307.50.  Medium and Large 1 feeder heifers 453 to 487 pounds brought $302 to $327 and feeder heifers 501 to 528 pounds brought $290 to $313.  

Boxed beef closed lower on light demand for moderate offerings.  Choice was $.46 lower at $303.34 and Select closed $.52 lower at $276.14.  The Choice/Select spread is $27.20. 

Estimated cattle slaughter is 120,000 head – up 4,000 on the week and about even on the year.  

Lean hog futures ended the day lower, pressured by weaker cash business.  December lean hogs closed $.60 lower at $79.50 and February lean hogs closed $.87 lower at $82.90.

Cash hogs closed lower with a fairly light negotiated run.  After a couple of solid days of business, processors likely have needed numbers on hand, and business is slow to end the week.  Overall demand has been solid in the global market, helping provide overall price support.  The industry continues to monitor the availability of market-ready hogs. However, there is concern that there aren’t as many available hogs as initially expected.  Domestic demand has been inconsistent, creating some uncertainty in the markets.  Barrows and gilts at the National Daily Direct closed $1.47 lower with ab base range of $75 to $88 and a weighted average of $84.67; the Iowa/Minnesota closed $1.00 lower with a weighted average of $86.05; the Western Corn Belt closed $1.27 lower with a weighted average of $85.53; no comparison at the Eastern Corn Belt but a weighted average of $82.15.  

Butcher hog prices at the Midwest cash markets are steady at $60.  

Pork values closed sharply higher – up $3.04 at $97.11.  Bellies ended the day more than $18 higher.  Ribs, butts, and picnics were all higher.  Loins and hams were lower.  

Estimated hog slaughter is 484,000 head – down 1,000 on the week and up about 3,000 on the year.