Market News

Cattle futures lower ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle were lower, pressured by the lower boxed beef and waiting for direct cash business to develop. December live cattle were up $1.47 at $151.57 and February lives were up $0.62 at $154.15. January feeders were up $0.25 at $179.65 and March feeders were up $0.35 at $181.80.

There was a light direct cash cattle trade that took place across cattle country on Wednesday.  Live deals in the South were at $150 and dressed deals in the North were at $242.  Neither were enough to establish a trend.  Asking prices will likely be restated at $152 live in the South and $245 dressed in the North.  It could be Thursday or Friday before significant trade volume develops.  

At the Interstate Regional Stockyards in Missouri, compared to last week, feeder steers were steady to $5 higher.  The supply of feeders was heavy with more cattle across all weight ranges.  Demand was good, especially for the lighter-weight, thinner-fleshed calves.  The USDA says bidding was active from start to finish from both buyers in person and online.  Overall quality wasn’t as attractive as the previous week, but the market, overall, was strong.  Receipts were up on the week and the year.  Feeder supply included 51% steers and 31% of the offering was over 600 pounds.   Medium and Large 1 feeder steers 550 to 593 pounds brought $185.75 to $198.50 and feeder steers 611 to 648 pounds brought $176 to $185.50.  Medium and Large 1 feeder heifers 500 to 546 pounds brought $160 to $170 and feeder heifers 706 to 710 pounds brought $162 to $165. 

Boxed beef closed lower on light demand for solid offerings.  Choice was $.27 lower at $264.67 and Select closed $.83 lower at $235.22.  The Choice/Select spread is $29.45. Estimated cattle slaughter was 129,000 head, even on the week and up 6,000 on the year. 

Lean hog futures were mixed, adjusting spreads.  December lean hogs were down $0.30 at $85.27 and February lean hogs were down $0.65 at $89.15.

Cash hogs closed higher with a strong negotiated run.  Processors were a bit more aggressive in their procurement efforts and bid up to move desired numbers.  The industry continues to monitor the availability of market-ready hogs and overall demand.  And while demand for US pork on the global market has been strong, there are concerns a slowing global economy could weaken demand and pressure prices. Barrows and gilts at the National Daily Direct closed $.48 higher with a base range of $78 to $92 with a weighted average of $87.70; the Iowa/Minnesota was $.65 with a weighted average of $88.72; the Western Corn Belt was $.33 higher with a weighted average of $88.72; the Eastern Corn Belt had no comparison but a weighted average of $86.97.

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with heavy demand for moderate offerings at $59 to $71.  Barrows and gilts were steady with moderate demand for moderate offerings at $58 to $68.  Boars ranged from $30 to $35 and $9 to $19. 

Pork values closed lower – down $1.02 at $94.12. Hams were sharply lower.  Loins and butts were lower.  Ribs, bellies, and picnics were higher. Estimated hog slaughter was 493,000 head – up 5,000 on the week and up 14,000 on the year.