Market News

Cattle futures mixed, lean hogs closed lower

At the Chicago Mercantile Exchange, live  and feeder cattle futures closed mixed, consolidating ahead of the week’s widespread direct business and Friday’s USDA Cattle on Feed report. December live was down $1.25 at $220.02 and February was $.92 lower at $220.85. January feeders were $.22 lower at $326.05 and March was down $.15 at $318.40.

Cash cattle country is very quiet on Tuesday with bids and  asking prices not established. Significant trade volume will likely be delayed until Wednesday or later.

At the West Point Livestock Auction in Nebraska, compared to the previous sale, cattle trended lower with  550 to 650 pound steers $5 to $8 lower. Heifers also trended lower. The USDA says demand was good with a good number of buyers in seats and an active internet. Feeder supply included 62 percent steers and 70 percent of the offering was over 600 pounds. Medium and large 1 feeder steers 758 to 764 pounds brought $320 to $332 with an average price $325.75. Medium and large 1 feeder heifers 601 to 633 pounds brought $336 to $355 with an average price of $344.10.

Boxed beef closed mixed with Choice $1.54 higher at $371.95, and Select was $1.35 lower at $354.95. The Choice/Select Spread is $17.

Estimated cattle slaughter is 121,000 head, up 5,000 on the week but down 6,000 on the year.

Lean hogs were pressured by the recent trend in the wholesale market. However, seasonal demand should start to improve over the next few weeks, and if there is a bright side to the decline in pork prices, it could lead to improved consumer demand in general. December was down $.67 at $77.90 and February was $1.40 lower at $78.02.

Cash hogs closed lower with a moderate negotiated run. The cash hog market has struggled to find some price support recently. However, processors have started the week a little more aggressive in their procurement efforts after a solid negotiated run on Monday. Demand remains the major question mark for the industry. It remains competitive priced in the U.S. against other proteins but there is some uncertainty globally. Trade and export data should return since the government shutdown has ended and that could provide some insight into the situation.

Barrows and gilts at the National Daily Direct were $.58 lower with a base range of $68 to $77 with an average price of $75.56; Iowa/Minnesota was $1.01lower with weighted average price of$$75.50; Western Corn Belt was $.94 lower with a weighted average price of $75.57; the Eastern Corn Belt did not report due to confidentiality reasons.

Butcher hogs prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate offerings from $47 to $50. Barrows and gilts prices were $4 lower with moderate demand for moderate offerings from $42 to $55. Boars ranged from $20 to $30 and $15 to $20.

Pork values closed $1.62 lower at $95.39. Loins, butts, ribs and hams were lower. Bellies and picnics where higher.

Estimated hog slaughter is 494,000, 34,000 higher on the week and 5,000 higher on the year.