Market News

Cattle futures higher waiting for cash business to develop

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct business.  February live cattle closed $.70 higher at $168.60 and April lives closed $.90 higher at $172.40.  January feeder cattle closed $1.30 higher at $219.25 and March feeder cattle closed $1.00 higher at $219.60. 

Direct cash cattle business was quiet again Tuesday.  Bids and asking prices didn’t surface.  Showlists are mixed — somewhat higher in Texas, but lower in Kansas, Nebraska, and Colorado. It’s very likely buyers and sellers are headed to a standoff, further delaying the development of any significant business.

At the Callaway Livestock Center in Missouri, steer calves 500 to 600 pounds were unevenly steady, steers 600 to 750 pounds were firm to $4 higher.  Feeder heifers 450 to 500 pounds were steady, heifers 500 to 600 pounds were steady with spots of $4 higher on heifers 550 to 600 pounds, heifers 600 to 650 pounds were $3 to $8 higher.  The USDA says demand was moderate to good on a moderate offering.  The overall quality was very good on steer and heifer calves weighing 500 to 700 pounds.  The feeder calf market has held up well.  Receipts were down slightly on the week and down on the year.  Feeder supply included 49% steers and 55% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 691 pounds brought $235 to $246 and fancy feeder steers 654 pounds brought $257.75.  Medium and Large 1 feeder heifers 551 to 577 pounds brought $225 to $235.50 and feeder heifers 607 to 644 pounds brought $220 to $235.50. 

Boxed beef closed mixed on light to moderate demand for solid offerings.  Choice was $2.35 higher at $292.78 and Select was $.88 lower at $258.66.  The Choice/Select spread is $34.12.  Estimated cattle slaughter was 127,000 head – up 1,000 on the week and up 6,000 on the year.  

Lean hog futures were mixed on spread trade as long-term demand concerns linger. February lean hogs closed $.92 higher at $68.25 and April lean hogs closed $.12 higher at $75.47. 

Cash hogs closed lower with a big negotiated run.  Processors were able to move significant numbers without having to get aggressive in their procurement efforts.  The ample supplies of market-ready hogs give packers leverage.  While demand for US pork on the global market has been relatively strong, there are long-term concerns about its certainty.  And domestic demand continues its sluggishness. Barrows and gilts at the National Daily Direct had closed $.89 lower with a base range of $43 to $52 and a weighted average of $48.77; the Iowa/Minnesota closed $.73 lower with a weighted average of $48.91; the Western Corn Belt closed $.98 lower with a weighted average of $48.66.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady following Monday’s sharp decline at $45. At Illinois, slaughter sow prices were $2 lower with moderate demand for moderate offerings at $34 to $46.  Barrows and gilts were $2 lower with moderate demand for moderate offerings at $31 to $41.  Boars ranged from $10 to $20 and $5 to $10. 

Pork values closed sharply lower – down $2.66 at $83.96.  Picnics and bellies were sharply lower.  Butts, hams, loins, and ribs were also lower. Estimated hog slaughter was 479,000 head – up 9,000 on the week and even on the year.