Market News

Cattle futures limit down at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were limit down on fund liquidation and technical weakness.  The market continues to digest the administration’s talk of an eventual reopening of the southern border.  December live cattle closed $7.25 lower at $220.52 and February live cattle closed $7.25 lower at $218.12.  January feeder cattle closed $9.25 lower at $319.97 and March feeder cattle closed $9.25 lower at $315.67. 

A light round of direct cash cattle trade developed on Wednesday across much of cattle country.  Dressed deals in the North were marked at $358 to mostly $360, steady to $2 higher than the previous week’s weighted average basis in Nebraska.  Live deals in the South were at $232, $4 lower than the prior week’s business. 

At the Gordon Livestock Market in Nebraska, loads mostly consisted of bawling heifers and steers.  There were also a few fall calves.  The USDA says prices were mixed and were dependent on condition.  Demand was moderate to good.  Receipts were down on the week. Feeder supply included 60 percent steers with 14 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 455 to 485 pounds brought $487.50 to $518 and feeder steers 553 to 578 pounds brought $405 to $444.50.  Medium and Large 1 feeder heifers 450 to 495 pounds brought $365 to $396 and feeder heifers 550 to 593 pounds brought $350 to $385. 

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice was $.68 higher at $378.26 and Select was $1.00 lower at $360.25.  The Choice/Select spread was $18.01. Estimated cattle slaughter is 117,000 head, down 2,000 on the week and more than 7,000 on the year.

Lean hogs ended the day mixed on spread trade, the market has long-term concerns about demand.  December lean hogs closed $.67 higher at $80.60 and February lean hogs closed $.05 higher at $80.97.

Cash hogs closed higher with a moderate negotiated run.  Processors were a little more aggressive in their procurement efforts and bid up to move needed numbers.  The industry continues to gauge available supplies against demand.  Pork remains a competitively priced protein in the retail space, and that’s likely providing some support, global demand remains in question as key export and trade data is missing as the government shutdown continues. Barrows and gilts at the National Daily Direct closed $1.29 higher with a base range of $79 to $87.50 and a weighted average of $86.00; the Iowa/Minnesota closed $2.28 higher with a weighted average of $86.82; the Western Corn Belt closed $1.28 higher with a weighted average of $86.09.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $68. At Illinois, slaughter sow prices are $2 lower with moderate demand for heavy offerings at $53 to $65. Barrows and gilts were $4 lower with moderate demand for moderate offerings at $50 to $60. Boars ranged from $20 to $30 and $15 to $20. 

Pork values were closed lower, down $1.63 at $97.54.  Bellies were sharply lower.  Loins, butts, picnics, hams, and ribs were also lower. Estimated hog slaughter is 493,000 head, up 8,000 on the week and 9,000 on the year.