Market News

Cattle futures lower waiting on direct business

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct business. February live cattle closed $2 lower at $186.32 and April contracts closed $1.95 lower at $288.55.  January feeder cattle closed $2.02 lower at $265.92 and March feeder cattle closed $2.10 lower at $253.60. 

There was a light round of direct cattle business that developed Thursday. Deals were marked in Nebraska at $297 dressed, $2 higher than the previous week’s weighted averages. Some light business in Texas was reported at $189 to $190, steady to $1 higher than the prior week’s business. Asking prices were around $192 to $194 live in the South, but didn’t surface in the North.  Look for more business to take place before the end of the day Friday. 

At the Huss Livestock Market in Nebraska, steers and heifers under 600 pounds sold sharply higher and steers over 600 pounds were steady to $10 higher.  Heifers over 600 pounds were steady to $4 higher.  The USDA says demand was good to very good from the buyers in the crowd and online.  Receipts were up from two weeks ago and on the year.  Feeder supply included 60% steers and 55% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $301 to $320 and feeder steers 650 to 694 pounds brought $280 to $302.  Medium and Large 1 feeder heifers 500 to 531 pounds brought $301 to $318 and feeder heifers 650 to 679 pounds brought $266 to $273.   

Boxed beef closed lower on light demand for fairly light offerings.  Choice was $.49 lower at $307.84 and Select closed $.60 lower at $277.10.  The Choice/Select spread is $30.74. Estimated cattle slaughter was 118,000 head – down more than 8,000 on the year.

Lean hog futures ended the day mixed on spread trade and weekly export sales. February lean hogs were unchanged and April lean hogs closed $.15 higher at $91.15. 

Cash hogs closed lower with a fairly light negotiated run. Processors have been moving decent numbers this week.  Packers have been in need of hogs to meet the current slaughter pace, especially following the holiday-shortened week.  Demand for U.S. pork on the global market has been strong, confirmed with another strong export sales report from the USDA. The industry continues to monitor the availability of market-ready hogs and hog weights, which are still below year-ago levels. Barrows and gilts at the National Daily Direct closed $2.28 lower with a base range of $76 to $88 and a weighted average of $85.34; the Iowa/Minnesota closed $2.15 lower with a weighted average of $85.48; the Western Corn Belt closed $2.15 lower with a weighted average of $85.48. 

Butcher hog prices at the Midwest cash markets are steady at $52. At Illinois, slaughter sow prices were $2 lower with moderate demand for heavy offerings at $36 to $48.  Barrows and gilts were $2 higher with moderate demand for moderate offerings at $50 to $60.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed lower – down $.96 at $88.64.  Ribs, bellies, and hams were all lower.  Loins, butts, and picnics were steady to sharply higher. Estimated hog slaughter was 489,000 head – up about 3,500 on the year.