Market News

Cattle futures mixed ahead of cash business

At the Chicago Mercantile Exchange, live cattle futures were mixed as the market waits for direction from the cash trade.  Feeder cattle were mostly lower, pressured by outside markets.  While wholesale values were higher at midday, other factors outweighed any potential support. February live cattle closed $.35 lower at $123.52 and April live cattle closed $.47 lower at $125.77.  January feeder cattle closed $.09 lower at $147.95 and March feeder cattle closed $.80 lower at $145.90

Direct cash cattle trade is at a standstill.  There was no reportable business for the day.  A few scattered asking prices have been floated at $125 live in the South.  Bids have yet to surface.  More activity is expected to develop something Thursday or Friday.  However, if the market follows its recent pattern, significant activity won’t happen until late in the day Friday. 

At the Winter Livestock Auction in Kansas receipts are down from the most recent auction and down on the year.  Compared to two weeks ago feeder steers 800 to 850 pounds were $5 to $10 lower and feeder heifers 600 to 650 pounds were $3 to $4 lower.  There were limited comparable weights.  The USDA says demand was moderate to good and the quality was average to attractive.  Feeder supply was 49 percent steers and 73 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 751 to 781 pounds brought $140 to $143.75 and feeder steers 801 to 838 pounds brought $133.50 to $139.25.  Feeder heifers 524 to 548 pounds brought $135 to $151 and feeder heifers 754 to 794 pounds brought $130 to $137.75. 

Boxed beef cutout values closed stead to higher on moderate to fairly good demand for light offerings.  Choice closed $1.29 higher at $216.64 and Select closed $.25 higher at $210.91.   Estimated cattle slaughter is 117,000 head – down 2,000 not he week and 1,000 on the year. 

Lean hog futures closed higher on support from the stronger wholesale values at midday.   The market is still hopeful the continued outbreak of African Swine Fever in China will eventually increase demand for US pork on the global market.  February lean hogs closed $.72 higher at $61.70 and April lean hogs closed $.47 higher at $67.55.

Cash hogs closed higher with very large negotiated purchase totals.  There is ample supply of ready barrows and gilts, but the demand picture remains unclear adding uncertainty to an already unstable market.  Slaughter runs were very slow to start the week, but processing margins are solid and it’s likely kill totals will continue to grow through the end of the week.  Saturday is expected to see another very large slaughter total.  The trade continues to watch African Swine Fever situation in China.  Should there be a disruption to the global supply, it could provide much needed price support to the US pork sector.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.02 higher with a range of $43 to $48 for a weighted average of $46.90; the Western Corn Belt closed $.99 higher with a range of $43 to $48 for a weighted average of $46.97; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.93 higher with a range of $42 to $48 for a weighted average of $46.53. 

Butcher hog prices from the Midwest cash markets aren’t available as they’re closed this week. 

At Illinois, slaughter sow receipts are up on the week and the year.  Prices are steady at $20 to $33 with light to moderate demand for moderate offerings.  Barrow and gilt prices are steady at $23 to $31 with moderate demand for moderate offerings.   Boars under 300 pounds brought $10 to $12 and boars over 300 pounds brought $6 to $8.

Pork cutout values closed steady – down $.15 at $70.04.  Picnics, loins, and ribs were all lower.  Butts were weak.  Hams were steady and bellies closed higher.  Estimated hog slaughter is 480,000 head – that’s up 8,000 on the week and 20,000 on the year.  Monday’s hog slaughter has been revised down to 402,000 head.