Market News

Cattle futures mixed ahead of On Feed numbers

At the Chicago Mercantile Exchange, live and feeder cattle ended the day mixed ahead of widespread direct cash business and Friday’s On Feed numbers.  February live cattle closed $.17 lower at $115.12 and April live cattle closed $1.22 lower at $122.92.  March feeder cattle closed $.22 lower at $138.20 and April feeder cattle closed $1.00 at $141.75. 

A very light, scattered direct cash cattle trade took place on Thursday.  Live deals in parts of Nebraska were at $113 to $114, that’s steady to slightly higher than last week’s weighted averages.  Live deals in Kansas were at $114.  Bids were scarce across the rest of cattle country.  Dressed deals in Iowa were at $181. Asking prices held firm around $116 plus live in the South and $188 dressed in the North.  Look for the bulk of the week’s business to take place on Friday.  There was a special Fed Cattle Exchange on Thursday with 1,444 head offered and 737 head sold.  There were 487 head sold in Texas for $114 and 250 head sold in Kansas at $113.75 to $114.

At the Mobridge Livestock Exchange in South Dakota, compared to last week, the best test was on steers 700 to 750 pounds and 800 to 850 pounds and they were mostly steady.  The best test was on heifers 600 to 650 pounds and they were steady.  The USDA says demand for the day’s offering of packages and a handful of home-raised cattle was good.  Flesh was mostly light to moderate plus.  Quality was mostly attractive, and the market was active on the limited offering.  Weather likely had an impact on the lighter receipts.  Feeder supply included 56 percent steers and 71 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 700 to 745 pounds brought $144.50 to $151 and feeder steers 805 to 815 pounds brought $138 to $143.25.  Medium and Large 1 feeder heifers 605 to 645 pounds brought $132 to $145 and feeder heifers 705 to 740 pounds brought $127.50 to $137.50. 

Boxed beef closed higher on good demand for moderate offerings.  Choice closed $1.34 higher at $238.85 and Select is $1.83 higher at $227.47.  The Choice/Select spread is $12.13.  Estimated cattle slaughter is 111,000 head – down 5,000 on the week and down 11,000 on the year. 

Lean hog futures closed higher, supported by higher cash business and pork values during the session.  April lean hogs closed $.02 higher at $84.92 and May lean hogs closed $.15 higher at $87.57. 

Cash hogs closed higher with a solid negotiated run.  Packers are bidding up to move their desired numbers.  The industry remains optimistic demand strength for US pork will hold strong on the global market and here domestically and that’s providing price support. However, concerns about heavy supplies aren’t out of sight.  The availability of market-ready hogs is more than ample and daily slaughter totals continue to push higher.  That’s adding more pork to a very saturated market.  Barrows and gilts at the National Daily Direct closed $1.03 higher with a base range of $61 to $73 and a weighted average of $69.58; the Iowa/Minnesota closed $1.27 higher with a weighted average of $71.98; the Western Corn Belt closed $1.21 higher with a weighted average of $71.82.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60 to $66 in Dorchester, Wisconsin and $5 to $10 higher in Garnavillo, Iowa at $70. 

Pork values closed higher – up $1.64 at $90.81.  Bellies, butts, loins, and ribs were all higher.  Hams and picnics were weak.  Estimated hog slaughter is 479,000 head – down 9,000 on the week and down 15,000 on the year.  Wednesday’s hog slaughter has been revised to 475,000 head.