Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower on technical selling, getting ready for the week’s direct business.  December live cattle closed $.85 lower at $185.07 and February lives closed $.97 lower at $185.92.  January feeders closed $.77 lower at $242.42 and March feeders closed $.90 lower at $240.25.

Direct cash cattle trade activity was quiet Monday. Showlists are mixed – somewhat higher in Nebraska/Colorado, higher in Kansas, but somewhat lower in Texas.  Bids and asking prices didn’t surface.  The bulk of the week’s business is expected  

At the Oklahoma National Stockyards, feeder cattle and calves were not well tested, and the few comparable sales were nearly steady.  The USDA says demand was moderate to good, but the heavy rains have limited recent livestock movement.  Receipts were down significantly on the week and the year.  Feeder supply included 56% steers and 54% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 601 to 642 pounds brought $253 to $264 and feeder steers 708 to 733 pounds brought $248 to $254.  Medium and Large 1 feeder heifers 500 to 522 pounds brought $242 to $257 and feeder heifers 663 to 672 pounds brought $238 to $241. 

Boxed beef closed higher with solid demand for moderate offerings.  Choice was $.57 higher at $316.91 and Select closed $2.13 higher at $287.16.  The Choice/Select spread is $29.75.  Estimated cattle slaughter was 120,000 head – down 1,000 on the week and down more than 2,500 on the year.

Lean hog futures ended the day mixed on spread trade.  December lean hogs closed $.85 lower at $83.22 and February lean hogs closed $.70 lower at $85.32. 

Cash hogs closed lower with a pretty light negotiated run. Processors have been starting the week slowly and haven’t been aggressive in their procurement efforts.  Prices have reflected that.  Global demand for U.S. pork has been strong.  While there has been a boost to domestic demand recently, there is long-term concern about its inconsistency.  The industry continues to monitor the availability of market-ready hogs and hog weights.   Barrows and gilts at the National Daily direct were $1.56 lower with a base range of $73 to $82 and a weighted average of $77.50 and the Eastern Corn Belt closed $1.13 lower with a weighted average of $77.82.  Prices at the Iowa/Minnesota and the Western Corn Belt were not reported due to confidentiality.  

Butcher hog prices at the Midwest cash markets are steady at $63. 

Pork values were about steady – up $.04 at $104.01.  Loins, butts, ribs, and picnics were sharply higher and higher.  Hams and bellies were lower and sharply lower. Estimated hog slaughter was 489,000 head – up 1,000 on the week and down nearly 1,000 on the year.