Market News

Cattle futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were up ahead of the week’s direct business and the multiple reports from the UDSA.  Feeders found additional support from he lower move in corn. February lives closed $.27 higher at $169.62 and April lives closed $.65 higher at $173.50.  January feeder cattle closed $2.27 higher at $223.17 and March feeders closed $1.97 higher at $224.15. 

It was a typically quiet start to the week for direct cash cattle business. Bids and asking prices didn’t surface on Monday. Showlists this week are mixed — lower in Texas and Kansas, but higher in Nebraska and Colorado.  It’s likely significant trade volume is going to hold out until midweek or later.

At mid-session, at the Oklahoma National Stockyards, feeder steers were $2 to $5 higher.  Feeder heifers have been lightly tested and are steady to $4 higher.  Steer calves were $4 to $8 higher, and heifer calves were mostly steady.   The USDA says demand was moderate to good for feeder cattle and very good for calves.  Recent rains have helped, and fall pastures are in pretty good condition.  Quality was average to attractive.  Receipts were down on the week and the year.  Feeder supply included 56% steers and 55% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 682 pounds brought $235 to $254 and feeder steers 756 to 799 pounds brought $214 to $230.50.  Medium and Large 1 feeder heifers 630 to 643 pounds brought $205 to $230 and feeder heifers 650 to 698 pounds brought $200 to $212. 

Boxed beef closed mixed with light to good demand for moderate offerings.  Choice was $2.71 lower at $288.93 and Select closed $2.90 higher at $263.72.  The Choice/Select spread is $25.21.  Estimated cattle slaughter was 125,000 head – down 1,000 on the week and up 26,000 on the year. 

Lean hog futures were mixed on spread trade.  Both cash and wholesale values were up at midday, but there are long-term demand concerns that linger. February lean hogs closed $.32 lower at $71.57 and April lean hogs closed $.05 lower at $78.57. 

Cash hogs closed higher with a moderate negotiated run.  Packers started the week a little more aggressive in their procurement efforts and bid up to move needed numbers.  But, with the ample supplies and high production efficiency, they have the leverage to do business as they please.  With Friday’s Quarterly Hogs and Pigs report and the long holiday weekend ahead, it’s a strong possibility that processors are more aggressive early in the week. Barrows and gilts at the National Daily Direct closed $.40 higher with a base range of $40 to $54 and a weighted average of $48.39; the Iowa/Minnesota closed $.72 higher with a weighted average of $48.66; the Western Corn Belt closed $.11 higher with a weighted average of $48.06. Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $1 lower than the last reported test. At Illinois, slaughter sow prices are steady with moderate demand for moderate offerings at $31 to $43.  Barrows and gilts are steady with moderate demand for moderate offerings at $27 to $37.  Boars ranged from $10 to $20 and $5 to $10.

Pork values closed lower – down $.36 at $83.97. Ribs, butts, loins, and bellies were lower to sharply lower, more than canceling out gains in picnics and hams. Estimated hog slaughter was 489,000 head – up 27,000 on the week and up 8,000 on the year.  Friday’s hog slaughter was revised to 471,000 head.