Market News

Cattle futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were higher on the sharply higher boxed beef during the session. February live cattle closed $1.10 higher at $201.87 and April live cattle closed $1.35 higher at $198.12.  March feeder cattle closed $3.22 higher at $268.12 and April feeder cattle closed $2.95 higher at $267.77. 

Direct cash cattle trade activity was quiet on Monday.  Showlists this week are higher across all major feeding areas.  Bids and asking prices didn’t surface.  Significant trade volume will likely be delayed until the latter half of the week.

At mid-session, at the Oklahoma National Stockyards, feeder steers and steer calves were steady to $5 lower, with steers 500 to 600 pounds up to $12 lower.  Feeder heifers were steady to $5 higher.  Heifer calves were $3 to $6 lower, with heifers 500 to 600 pounds up to $10 lower.  The USDA says demand was moderate and the quality was not as good as last week.  Receipts were down on the week and the year.  Feeder supply included 50% steers and 69% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 606 to 647 pounds brought $295 to $323 and feeder steers 753 to 799 pounds were $261 to $274.  Medium and Large 1 feeder heifers 600 to 649 pounds brought $262 to $285 and feeder heifers 701 to 748 pounds brought $253 to $263. 

Boxed beef closed higher with solid demand for light offerings.  Choice was $1.63 higher at $323.50 and Select closed $1.02 higher at $313.92.  The Choice/Select spread is $9.58. Estimated cattle slaughter was 100,000 head – down 15,000 on the week and down nearly 15,000 on the year.

Lean hog futures ended the day mixed on spread trade, the higher midday move in pork, and ongoing demand uncertainties. February lean hogs closed $.45 higher at $87.70 and April lean hogs closed $.52 lower at $91.62. 

Cash hogs were not reported due to confidentiality with very few negotiated purchases.  Processors are off to a slow start to the week and aren’t aggressive in their procurement efforts.  Prices, and volume of movement reflect that.  The industry continues to monitor the availability of market-ready hogs and hog weights to gauge supply.  Demand for U.S. pork on the global market has been strong, which has been helping provide price support.  But domestic demand has been inconsistent.  The 5-day rolling average for barrows and gilts at the National Daily Direct is $85.60; it’s $86.70 for the Iowa/Minnesota; and for the Western Corn Belt the 5-day rolling average is $86.55. 

Butcher hog prices at the Midwest cash markets are steady to $64.  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 $2.62 at $99.62.  All of the primals except the butts were higher to sharply higher.  Butts were weak. Estimated hog slaughter was 491,000 head – up 6,000 on the week and up about 10,000 on the year.