Market News

Cattle futures lower on profit-taking

At the Chicago Mercantile Exchange, live and feeder cattle were lower on profit-taking and the lower boxed beef.  February live cattle closed $1.52 lower at $207.02 and April live cattle closed $2.32 lower at $204.95.  March feeder cattle closed $2.97 lower at $275.27 and April feeder cattle closed $3.20 lower at $274.60. 

Direct cash cattle trade remains at a standstill.  No bids were floated on Wednesday.  Asking prices were at $210 live in the South, but weren’t established in the North.  Another strong week of business is expected, but a standoff between buyers and sellers could continue, especially with Friday’s Cattle Inventory report from the USDA.  The holdout last week proved fruitful in the end, as prices were significantly higher.

At the Ozarks Regional Stockyards in Missouri, feeder steers and heifers were $4 to $8 higher.  Steer and heifer calves under 750 pounds were $3 to $6 higher with spots of $12 higher.  The USDA says demand was very good on a heavy supply.  Receipts were up on the week, but down on the year.  Feeder supply included 48% steers and 44% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 504 to 548 pounds brought $342.50 to $366 and feeder steers 602 to 648 pounds brought $307.50 to $337.50.  Medium and Large 1 feeder heifers 550 to 599 pounds brought $287 to $312.50 and feeder heifers 600 to 646 pounds brought $275 to $288. 

Boxed beef closed lower on light demand for solid offerings.  Choice was $1.81 lower at $330.54 and Select closed $1.29 lower at $320.67.  The Choice/Select spread is $9.87.   Estimated cattle slaughter was 124,000 head – even on the week and about even on the year.

Lean hog futures ended the day mixed on spread trade with cash hogs higher and pork values lower during the session.  February lean hogs were unchanged at $83.90 and April lean hogs closed $.42 higher at $91.32.

Cash hogs closed mixed with a solid negotiated run.  Demand for U.S. pork on the global market has been strong, helping provide support to the market.  Processors have been more aggressive in their procurement efforts in order to keep up with the increased slaughter pace.  Domestic demand has been inconsistent, which has added volatility to the market.  Hog weights were down nearly a pound on the week and were a pound lower than year-ago levels.  The industry also continues to monitor talks on tariffs. Barrows and gilts at the National Daily Direct were $.83 lower with a base range of $78 to $85.50 and a weighted average of $83.49; the Iowa/Minnesota and the Western Corn Belt were both $.03 higher with weighted averages of $84.35.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $57. 

Pork values closed higher – up $.49 at $93.31.  Bellies were sharply higher.  Picnics and ribs were higher.  Hams, loins, and butts were weak to lower. Estimated hog slaughter was 483,000 head – up 39,000 on the week and down about 6,000 on the year.

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