Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower on profit-taking ahead of the week’s direct business.  February live cattle closed $.47 lower at $226.67 and April live cattle closed $.97 lower at $226.70.  January feeder cattle closed $3.40 lower at $335.65 and March feeder cattle closed $2.87 lower at $330.42. 

Direct cash cattle trade activity had a quiet start to the week, typical for a Monday.  Showlists are mixed, higher in Texas, Nebraska and Colorado, but lower in Kansas.  Bids and asking prices didn’t surface.  Significant trade volume isn’t expected until sometime Thursday or Friday. 

At midsession, at the Oklahoma National Stockyards, feeder steers weighing less than 800 pounds were $6 to $10 higher and steers weighing more than 800 pounds were $15 to $30 higher.  Feeder heifers were lightly tested at $6 to $10 higher.  Steer and heifer calves were $15 to $30 higher with spots of $40 higher.  The USDA says demand was very good for all classes of cattle.  Quality was average.  Receipts were up on the week, but down on the year.  Medium and Large 1 feeder steers 652 to 688 pounds brought $364 to $390 and feeder steers 705 to 749 pounds brought $332 to $366.  Medium and Large 1 feeder heifers 550 to 592 pounds brought $364 to $399 and feeder heifers 656 to 687 pounds brought $321 to $339. 

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice was $.30 lower at $360.90 and Select was $1.21 higher at $348.60.  The Choice/Select spread at $12.30.

Estimated cattle slaughter was 115,000 head – even on the week and down more than 3,000 on the year. 

Lean hog futures closed mixed, adjusting spreads.  February lean hogs closed $.12 higher at $82.40 and April lean hogs closed $.20 higher at $86.97.

Cash hogs closed mixed with a fairly light negotiated run. The cash hog market had a slow start to the week.  There continues to be a lot of questions around demand.  Pork is a competitively priced protein in the retail space, which is likely helping in the domestic market, but there are still a lot of uncertainties lingering around global demand.  Hog weights are creeping back up, which adds to available supply.  Barrows and gilts at the National Daily Direct closed $1.49 lower with a base range of $61 to $74 with a weighted average of $70.04; the Iowa/Minnesota closed $.69 higher with a weighted average of $71.18; the Western Corn Belt closed $.78 higher with a weighted average of $71.01.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $55.  At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $38 to $50.  Barrows and gilts were steady with moderate demand for moderate offerings at $40 to $48.  Boars ranged from $18 to $22 and $12 to $15.   

Pork values closed lower, down $.88 at $95.51.  Picnics and bellies were sharply lower.  Butts and hams were lower.  Loins were up and ribs were sharply higher. Estimated hog slaughter was 494,000 head, up 12,000 on the week and up about 8,000 on the year.