Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct business. February live cattle closed $1.92 lower at $215.92 and April live cattle closed $2.00 lower at $217.55.  January feeder cattle closed $2.90 lower at $321.07 and March feeder cattle closed $2.32 lower at $315.52. 

Direct cash cattle trade activity had a typically quiet start to the week.  Showlists are mixed, higher in Kansas, nearly steady in Nebraska/Colorado, but lower in Texas.  Significant trade volume will likely be delayed until the back half of the week.

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers were $5 to $25 higher and feeder heifers were $10 to $30 higher.  The USDA says supply was moderate with very good demand. Feeder supply included 51 percent steers with 56 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 605 to 640 pounds brought $351 to $400 and feeder steers 653 to 699 pounds brought $337 to $360.  Medium and Large 1 feeder heifers 632 to 644 pounds brought $327 to $355 and feeder heifers 807 to 833 pounds brought $307 to $324. 

Boxed beef closed sharply higher with strong demand for fairly light offerings.  Choice was $2.07 higher at $368.89 and Select was $6.83 higher at $357.88.  The Choice/Select spread is $11.01. Estimated cattle slaughter was 115,000 head, down 5,000 on the week and down more than 1,000 on the year.

Lean hog futures ended the day mixed on spread trade, with ongoing concerns about demand. February lean hogs closed $.70 lower at $80.30 and April lean hogs closed $.62 lower at $84.27. 

Cash hogs closed mixed with a very light negotiated run.  The market has struggled with consistency.  Hog weights have been creeping back up, which adds to available supplies, but demand remains the wild card.  The trade data from the USDA shows exports of pork to the global market were down slightly year-over-year. Domestic demand is likely finding at least a little support as pork remains a competitively priced protein in the retail space. Barrows and gilts at the National Daily Direct closed $.41 lower with a base range of $65 to $75.50 and a weighted average of $71.68; the Iowa/Minnesota closed $1.68 higher with a weighted average of $74.42; the Western Corn Belt closed $1.11 higher with a weighted average of $73.67.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices in Dorchester, Wisconsin are steady with last week’s business at $60. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $42 to $54.  Barrows and gilts were steady with moderate demand for moderate offerings at $42 to $55.  Boars ranged from $20 to $30 and $15 to $20. 

Pork values closed higher, up $.57 at $94.79.  Bellies, loins, picnics, and hams were all higher.  Butts and ribs were sharply lower. Estimated hog slaughter was 492,000 head, down 3,000 on the week and up nearly 8,000 on the year.