Market News

Cattle futures higher to start the week, optimistic about cash business

At the Chicago Mercantile Exchange, live and feeder cattle were higher, ahead of widespread direct business.  December live cattle closed $2.22 higher at $244.75 and February live cattle closed $1.80 higher at $247.20.  November feeder cattle closed $.82 higher at $376.72 and January feeder cattle closed $1.77 higher at $373.72. 

Direct cash cattle trade activity was quiet to start the week.  Showlists are slightly lower in Nebraska/Colorado and Texas, and lower in Kansas.  Bids and asking prices didn’t surface Monday.  If business follows the trend of recent weeks, significant trade volume isn’t expected until sometime Thursday or Friday. 

At mid-session, at the Oklahoma National Stockyards, feeder steers were $10 to $20 higher.  Feeder heifers were $5 to $15 higher.  Steer and heifer calves were roughly $20 to $30 higher.  Receipts were up on the week, but down on the year.  Feeder supply included 63 percent steers and 64 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 609 to 633 pounds brought $396.50 to $437 and feeder steers 664 to 699 pounds brought $384 to $425.  Medium and Large 1 feeder heifers 555 to 590 pounds brought $355 to $402.50 and feeder heifers 707 to 749 pounds brought $345 to $355. 

Boxed beef closed mixed with light to moderate demand for heavy offerings.  Choice was $1.66 lower at $363.91 and Select was $3.36 higher at $349.75.  The Choice/Select spread was $14.16. Estimated cattle slaughter was 106,000 head, up 5,000 on the week and down nearly 14,000 on the year.

Lean hog futures closed mixed on spread trade, with pork values higher during the session.  December lean hogs closed $.82 higher at $84.85 and February lean hogs closed $.67 higher at $86.97. 

Cash hogs closed sharply lower with a light negotiated run. Consistently inconsistent is the best way to describe the cash hog market lately.  Processors weren’t very aggressive in their procurement efforts to start the week.  Business is expected to pick up over the next couple of days.  The market is largely focused on demand.  There has likely been a boost in domestic demand as pork remains a competitively priced protein in the retail space.  There is some uncertainty surrounding the demand for U.S. pork on the global market, as several important data sets haven’t been reported due to the ongoing partial shutdown of the U.S. government.  Barrows and gilts at the National Daily Direct closed $4.11 lower with a base range of $87 to $100 and a weighted average of $92.29; the Iowa/Minnesota is $4 lower with a weighted average of $92.43; the Western Corn Belt is $4.02 lower with a weighted average of $92.40.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $70. 

Pork values closed lower, down $.83 at $103.59.  Butts, ribs, hams, and picnics were all lower.  Bellies and loins were higher. Estimated hog slaughter was 490,000 head, down 1,000 on the week and up more than 21,000 on the year.