Market News

Cattle futures mostly higher to finish the week

At the Chicago Mercantile Exchange, live and feeder cattle were mostly higher with boxed beef up at midday, waiting on direct business to develop. October live cattle closed $.20 lower at $218.87 and December live cattle closed $1.05 higher at $222.15.  October feeder cattle closed $3.17 higher at $334.92 and November feeder cattle closed $3.90 higher at $331.97. 

Heading into the end of the week, direct cash cattle business was overall, mostly quiet.  Sellers appeared to be holding out for better money.  There were some deals reported at $350 dressed in Nebraska, but numbers weren’t substantial.  

At the Winter Livestock Auction in Kansas, feeder steers 650 to 950 pounds sold $3 to $8 lower, however load lots of fancy steers sold $10 to $15 higher.  Feeder heifers 650 pounds to 1,000 pounds were $3 to $12 higher.  Steer and heifer calves 400 to 650 pounds sold $15 to $20 higher.  The USDA says demand was good for fancy steers and heifers.  Receipts were up on the week and the year.  Feeder supply included 58 percent steers with 77 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 651 to 693 pounds brought $368 to $386 and feeder steers 857 to 895 pounds brought $321 to $333.  Medium and Large 1 feeder heifers 656 to 684 pounds brought $358.50 to $363 and feeder heifers 868 to 899 pounds brought $295.20 to $300. 

Boxed beef was sharply higher with solid demand for moderate offerings.  Choice was $2.71 higher at $378.83 and Select was $3.66 higher at $355.76.  The Choice/Select spread was $23.07. Estimated cattle slaughter was 87,000 head, down 14,000 on the week and down more than 4,000 on the year.  Saturday’s estimated kill is 8,000 head, even on the week and up about 7,500 on the year. 

Lean hog futures were lower on technical selling. October lean hogs closed $.97 lower at $78.22 and December lean hogs closed $.45 lower at $69.02. 

Cash hogs closed mixed with a light negotiated run. The cash hog market has struggled to find consistent support.  Processors have leverage and are moving needed numbers without having to get aggressive in their procurement efforts.  The industry continues to monitor available supplies with demand.  The Quarterly Hogs and Pigs report should be relatively supportive to prices. There have been some bright spots when it comes to demand, but there are lingering concerns about long-term strength. Barrows and gilts at the National Daily Direct closed $.27 lower with a base range of $70 to $84 and a weighted average of $78.68; the Iowa/Minnesota closed $.27 higher with a weighted average of $79.51; the Western Corn Belt closed $.24 higher with a weighted average of $79.25.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were steady to weak.  Feeder pigs were mostly steady.  Trade has been slow with light to moderate demand for moderate offering on the early-weaned pigs and moderate demand for moderate offerings for feeder pigs.  The weighted average for early-weaned pigs was $29.21 and the weighted average for feeder pigs was $50.59.

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sows were steady with moderate demand for light to moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $53 to $63.  Boars ranged from $25 to $35 and $15 to $20. 

Pork values closed higher, up $.64 at $86.74. Bellies were up sharply.  The rest of the primals were lower. Estimated hog slaughter was 485,000 head, up 8,000 on the week and up about 20,000 on the year.  Saturday’s estimated kill is 145,000 head, up 65,000 on the year and up more than 11,000 on the year.