Market News

Cattle futures lower ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower ahead of the week’s direct business. There was also some pressure from weaker boxed beef. February lives closed $.85 lower at $168.77 and April live cattle closed $.82 live at $172.67. January feeder cattle closed $1.27 at $221.90 and March feeder cattle closed $.95 lower at $223.20.

Direct cash cattle trade activity was quiet again on Tuesday. Bids and asking prices didn’t surface. It’s likely significant trade volume is going to hold out until at least midweek or later, especially with Friday’s Cattle On Feed report from the UDSA.

At the Tri-State Livestock Auction in Nebraska, steers were steady to $8 higher. Heifers were $6 to $14 higher. The USDA says demand was good to moderate on all classes offered. Receipts were up on the week and the year. Feeder supply included 49% steers and 68% of the offering was over 600 pounds. Medium and Large 1 feeder steers 666 to 698 pounds brought $240 and $256 and feeder steers 750 to 756 pounds brought $236 to $239. Medium and Large 1 feeder heifers 603 to 626 pounds brought $233 to $241 and feeder heifers 707 to 734 pounds brought $212.50 to $224.50.

Boxed beef closed lower with light demand for moderate offerings. Choice was $.10 lower at $288.83 and Select closed $.56 lower at $263.16. The Choice/Select spread is $25.67. Estimated cattle slaughter was 124,000 head – down 3,000 on the week and even on the year.

Lean hog futures closed lower as long-term demand concerns linger. Pork values were also lower. February lean hogs closed $1.02 lower at $70.55 and April lean hogs closed $.97 lower at $77.60. Cash hogs closed mixed with a light negotiated run.

The cash hog market has struggled to find any consistent upside potential. The ample supplies of market-ready hogs combined with production efficiency allow packers to move needed numbers without facing much pushback, meaning they don’t have to get aggressive in their procurement efforts. The industry is also looking ahead to Friday’s Quarterly Hogs and Pigs report on Friday. Barrows and gilts at the National Daily Direct closed $1.42 lower with a base range of $41 to $54 and a weighted average of $46.97; the Iowa/Minnesota closed $.35 higher with a weighted average of $49.01; the Western Corn Belt closed $1.09 lower with a weighted average of $46.97. Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $44. At Illinois, slaughter sow prices are $2 lower with moderate demand for heavy offerings at $28 to $40. Barrows and gilts were $2 lower with moderate demand for moderate offerings at $25 to $35. Boars ranged from $10 to $20 and $5 to $10.

Pork values closed lower – down $.91 at $83.06. Bellies were sharply lower. Hams and butts were also lower. Ribs, loins, and picnics were higher. Estimated hog slaughter was 491,000 head – up 17,000 on the week and up 1,000 on the year. Monday’s hog slaughter has been revised to 477,000 head.