Market News

Cattle futures higher to start the short-trading week

At the Chicago Mercantile Exchange, live and feeder cattle were up, watching weather and waiting for direct business to develop. There was additional support from the lower move in corn. February live cattle closed $1.75 higher at $173.12 and April lives closed $1.00 higher at $175.17. March feeder cattle closed $1.12 higher at $228.82 and April feeder cattle closed $1.27 higher at $234.27.

Direct cash cattle trade activity was quiet again Tuesday. Asking prices did surface in the South around $174 to $175 live, while the North remained quiet. Bids didn’t surface. Weather likely remains a factor and significant trade volume could be pushed to later in the week.

At the Lonestar Stockyards in Texas, feeder steers and heifers were mostly $1 to $2 higher. Steer and heifer calves were mostly $1 to $5 higher. There were limited comparable offerings. The USDA says business was moderate on moderate to good buyer demand. Weather impacted sale activity this week. The majority of the supply consisted of large load lots of yearlings ranging in flesh conditions. Receipts were down on the week and the year. Feeder supply included 55% steers and 82% of the offering was over 600 pounds. Medium and Large 1 feeder steers 673 pounds brought $236 and feeder steers 846 pounds brought $220. Medium and Large 1 feeder heifers 773 pounds brought $198.50.

Boxed beef closed sharply higher on very good demand for moderate offerings. Choice was $3.57 higher at $294.99 and Select closed $7.42 higher at $279.48. The Choice/Select spread is $15.01. Estimated cattle slaughter was 114,000 head – up 20,000 on the week and down 14,000 on the year.

Lean hog futures were pressured by technical selling and contracts’ premium to cash. February lean hogs closed $1.12 lower at $70.77 and April lean hogs closed $1.05 lower at $77.57.

Cash hogs had no comparison with a moderate negotiated run. The cash hog market has struggled to find any consistent factor that could provide some long-term price support. While demand for U.S. pork on the global market has been strong there are more negative factors hanging around. Supplies of market-ready hogs are more than ample and hog weights have been on the rise. Both add more pork to the market and give packers additional leverage. Processors aren’t in a position where they need to bid up to move needed numbers and prices have reflected that. Barrows and gilts at the National Daily Direct have a base range of $41 to $47 and a weighted average of $45.90; the Iowa/Minnesota had a weighted average of $45.97; the Western Corn Belt had a weighted average of $45.94. Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $36. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $25 to $37. Barrows and gilts were steady with moderate demand for moderate offerings at $25 to $35. Boars ranged from $10 to $20 and $5 to $10.

Pork values closed $.73 higher at $87.79. Ribs and bellies led the way, but there was strength across the board in the primals. Estimated hog slaughter was 464,000 head – up 69,000 on the week and down 25,000 on the year.