Market News

Cattle futures mixed as boxed beef firms and cash trade stays quiet

Chicago Mercantile Exchange live and feeder cattle futures closed mixed, with boxed beef mixed at midday, preparing for widespread direct business. The choppy tone in the broader market also contributed to the mixed finish. December live cattle were up $.27 at $246.77 and February was $.22 higher at $248.75. November feeder cattle were down $.65 at $380.67 and January was $.20 lower at $377.85.

Direct cash cattle trade was very quiet on Wednesday with asking prices in the South starting at $240-plus. Asking prices haven’t been established yet in the North. Significant trade volume will likely occur Thursday and/or Friday.

At the Philip Livestock Auction in South Dakota, feeder steers 400 to 450 pounds sold $20 to $30 higher compared to the most recent sale and heavier weights ranged from $5 to $15 higher. Feeder heifers were $5 to $20 higher. USDA says there was very good demand for large offering. Receipts were sharply higher from the October 7^th sale and moderately higher from year-ago levels. Feeder supply included 65% steers and 32% of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 595 pounds brought $485 to $520. Medium and Large 1 feeder heifers 562 to 588 pounds sold for $420 to $456.

Boxed beef was mixed at the close. Choice was up $2.06 at $366.48 and Select was $1.39 lower at $349.16. The Choice/Select spread was $17.32.

Estimated cattle slaughter was 122,000 head – up 4,000 on the week and down nearly 3,500 on the year.

Lean hog futures were up modestly on short covering and technical buying. December was $.45 higher at $83.60 and February was up $.25 at $85.70.

Cash hog business was mostly steady to higher with moderate opening negotiated numbers at the major direct markets. After starting the day with no recent comparison, those major direct markets ended the day with gains as many buyers needed to raise bids to pick up supplies to keep chain speed running. Trade for the back half of the week will depend on whether or not there was enough movement to fill schedules into Saturday. Still, average weights are up on the week and the year, putting more pork onto the market, and wholesale business has been inconsistent. Domestic demand continues to hold a lot of the spotlight due to the suspension of the USDA’s weekly export sales report.

Barrows and gilts at the National Daily Direct closed $.37 higher with a base range of $85 to $98. The Iowa/Minnesota was up $1.71 at $93.84. The Western Corn Belt was $1.40 higher at $93.43. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs were steady at the Midwest cash markets in Dorchester, Wisconsin and Garnavillo, Iowa with barrows and gilts priced at $70.

Illinois slaughter sows were steady with moderate demand for moderate offerings at $57 to $69. Illinois boars were priced at $18 to $35.

Pork values closed lower – down $1.80 at $101.96. All primal cuts were lower.

Estimated hog slaughter was 492,000 head – up 8,000 on the week and up more than 5,000 on the year.