Market News

Cattle futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher ahead of widespread direct cash business.  Feeder cattle had additional support from the day’s lower move in corn.  April live cattle closed $.37 higher at $118.77 and June live cattle closed $.25 higher at $118.92.  March feeder cattle closed $.40 higher at $135.07 and April feeders were unchanged at $139.42. 

A quiet start to the week for direct cash cattle trade.  Bids and asking prices have yet to surface.  Showlists are higher in Kansas, somewhat higher in Texas, but lower in Nebraska/Colorado.  Significant trade volume will likely be delayed until midweek or later. 

At midsession, at the Oklahoma National Stockyards, compared to last week, feeder cattle and calves were all steady.  The USDA says demand was moderate to good.  Receipts were up on the week and the year.  Feeder supply included 53 percent steers and 50 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 604 to 641 pounds brought $141 to $162.50 and feeder steers 658 to 699 pounds brought $139 to $150.50.  Medium and Large 1 feeder heifers 452 to 498 pounds brought $143.50 to $158 and feeder heifers 605 to 643 pounds brought $127 to $143.25. 

Boxed beef closed higher on good demand for moderate offerings.  Choice is $.96 higher at $230.95 and Select closed $3.10 higher at $223.05.  The Choice/Select spread is $7.90.  Estimated cattle slaughter is 116,000 head – down 9,000 on the week and down 10,000 on the year.  Saturday’s cattle slaughter has been revised to 68,000 head. 

Lean hog futures ended the day mostly lower, shrugging off the strength in pork values and the firm cash business.  April lean hogs closed $.80 higher at $95.05 and May lean hogs closed $.52 lower at $94.40. 

Cash hogs closed sharply higher with a solid negotiated run.  Packers bid up to move their desired numbers Monday afternoon.  Strong demand has been very supportive to prices and the market is optimistic that will continue.  The industry is monitoring the availability of market-ready hogs.  And daily slaughter totals continue at relatively high levels.  Should a disruption to demand occur, it would likely send prices lower.  Barrows and gilts at the National Daily Direct closed $2.55 higher with a base range of $84 to $95 and a weighted average of $90.27; the Iowa/Minnesota closed $1.71 higher with a weighted average of $93.15 and the Western Corn Belt closed $2.03 higher with a weighted average of $93.16.  Prices at Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady in Dorchester, Wisconsin at $58 and $10 lower in Garnavillo, Iowa at $48.  At Illinois, slaughter sow prices were $1 higher with very good demand for moderate to heavy offerings at $73 to $83.  Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $58 to $64.  Boars ranged from $30 to $40 and $12 to $20. 

Pork values closed firm – up $.27 at $103.26.  Picnics, bellies, and ribs were all sharply higher.  Loins, hams, and butts were lower to sharply lower.  Estimated hog slaughter is 494,000 head, up 12,000 on the week and down 5,000 on the year.