Market News

Cattle futures lower, lean hogs higher to close out the week

At the Chicago Mercantile Exchange, live and feeder cattle futures were lower Friday, with most contracts down sharply, on technical selling and questions about beef demand. December live was $1.70 lower at $221.47 and February was down $2.30 at $223.15. November feeders were down $5.20 at $331.15 and January was $5.15 lower at $324.55.

Throughout the week Southern live cattle were marked at $226 which is $4.00 higher than last weeks weighted average and Northern dressed cattle sold anywhere from $345 to $350 which is steady with last weeks weighted average.

At the Mid Missouri Stockyards Cattle Auction in Phillipsburg, Missouri, compared to last week steers under 600 pounds sold mostly steady, and steers over 600 pounds sold steady to $6 lower. Heifers sold mostly $3 to $6 lower. Receipts were down on the week, but up on the year. Feeder supply included 51 percent steers and 46 percent of the offering was over 600 pounds. Medium and large 1 feeder steers 608 to 627 pounds brought $387 to $399.50 with an average price of $392.24. Medium and large 1 feeder heifers 715 to 718 pounds brought $322.50 to $323 with an average price of $322.52.  

Boxed beef closed mixed with Choice $2.60 sharply lower at $374.19, and Select $1.60 higher at $354.49. The Choice/Select spread is $19.70.

Estimated cattle slaughter is 100,000 head, up 13,000 on the week and 7,000 on the year.

Lean hog futures were higher, supported by oversold signals and the midday gain in the pork carcass cutout value. December was up $1.20 at $70.12 and February was $1.57 higher at $71.32.

Cash hogs closed higher with a light negotiated run. Processors were a little more aggressive in their procurement efforts on Friday that capped an inconsistent week. There were a few days of good business earlier in the week. The inconsistent trend could continue. Demand for pork remains strong both domestically and locally. However, there are some long-term concerns.  

Barrows and gilts at the National Daily Direct were $.30 higher with a base range of $69 to $81 with a weighted average price of $77.23. The regional markets did not report due to confidentiality reasons.

Butcher hog prices at the Midwest cash markets were steady at $60. At Illinois, slaughter sows were steady with moderate demand for light offerings at $43 to $55. Barrows and gilts prices were steady with moderate demand for moderate offerings at $53 to $63. Boars ranged from $25 to $35 and $15 to $20.

Pork values closed $.81 lower at $84.48. Bellies and picnics were higher to sharply higher. Loins, ribs, butts and hams were lower.

Estimated hog slaughter is 489,000; up 4,000 on the week and 7,000 on the year.