Market News

Cattle futures mostly higher ahead of direct trade

Chicago Mercantile Exchange live cattle futures were steady to modestly higher ahead of the week’s direct business, while feeders were up on the lower move in corn. December live was unchanged at $183.70 and February was up $.07 at $185.37. January feeders were $.82 higher at $242.25 and March was up $.67 at $240.05.

Direct cash cattle markets were quiet as buyers and sellers got a look at this week’s show list. The ready numbers look mixed, higher in Texas, lower in Colorado, Kansas, and Nebraska, with widespread business not expected until the second half of the week. Last week’s live business was light at $187 in the south, with dressed trade mostly at $294 in the north, both $3 lower than the week before. Formula totals were mixed, up in Nebraska, down in Kansas and Texas, with trade volume at least somewhat lower in all three states.

At the Sioux Falls Regional Cattle Auction in South Dakota, compared to the previous week, steer and heifer calves had a higher undertone after the prior week’s limited test. Yearling steers were $5 to $10 lower and yearling heifers were $4 to $6 lower. The USDA says demand was very good for steer and heifer calves with plenty of feeder cattle producers in attendance, while yearling demand was moderate to good with long strings of steers and heifers in full and multiple load lots and heavier flesh condition. 62% of the offering were steers and 75% of all feeder cattle weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 850 to 900 pounds were reported at $241 to $249 and fleshy steers weighing 900 to 1,000 pounds brought $219 to $238. Medium and Large 1 feeder heifers weighing 450 to 550 pounds ranged from $280 to $327 and 650 to 750-pound heifers sold from $247 to $265.

Boxed beef closed firm to higher with light to moderate movement. Choice was up $.28 at $308.21 and Select beef was $2.65 higher at $281.84. The estimated cattle slaughter of 112,000 head was down 8,000 on the week and 12,473 on the year.

Lean hog futures were mostly higher on commercial spread trade tied to demand expectations. December was up $1.35 at $81.77 and February was $1.10 higher at $85.92.

Cash hogs were mixed, with light to moderate closing negotiated numbers at the major direct markets. Business was very slow to start the week, at least partially because of Veterans Day. Last week’s late trade was not all that aggressive, which could give a firm undertone to this week’s early activity, with some buyers likely in need of near-term supplies. Still, buyer demand could be limited by the ongoing inconsistencies in the wholesale market.

National direct barrows and gilts were $1.85 higher with a base price range of $75 to $86 for a weighted average of $83.52, while Iowa/Southern Minnesota had no recent comparison with an average of $83.92 and the Western Corn Belt had no recent comparison with an average of $83.88. The Eastern Corn Belt was not reported due to confidentiality with a five-day rolling average of $80.12. The Midwest butcher hog markets in Dorchester, Wisconsin and Garnavillo, Iowa were $3 lower at $60.

Pork closed $.92 lower at $101.46. Butts, ribs, and hams were down, while bellies dropped $11.18, canceling out gains in loins and picnics. The estimated hog slaughter of 458,000 head was down 31,000 on the week and 15,100 on the year.