Market News

Cattle futures mostly higher waiting on cash business

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were higher watching weather, and waiting for widespread direct business to develop. February live cattle closed $.02 lower at $173.10 and April lives closed $.45 higher at $175.62.  March feeders closed $.95 higher at $229.77 and April feeders closed $.92 higher at $235.20. 

Direct cash cattle trade act has been quiet all week.  Bids surfaced at $175 live and $273 dressed.  Asking prices were firm around $174 to $175 live in the South, while the North remained quiet.  Look for significant trade volume to develop Thursday or Friday. 

At the Winter Livestock Auction in Kansas, there was another light test, but a higher undertone was noted on feeder cattle. Weather continues to be a factor. The USDA says demand was good. Receipts were up on the week but down significantly on the year. Feeder supply included 73% steers and 65% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 676 to 696 pounds brought $242 to $269.75 and feeder steers 944 pounds brought $214.10.  Medium and Large 1 feeder heifers 525 to 538 pounds brought $251 to $254.50 and feeder heifers 658 pounds brought $227.

Boxed beef closed higher on solid demand for moderate offerings.  Choice was $3.46 higher at $298.45 and Select was $3.04 higher at $283.02.  The Choice/Select spread was $15.43. Estimated cattle slaughter was 118,000 head – down 2,000 on the week and down more than 3,000 on the year.

Lean hog futures were mostly higher, supported by strong cash and wholesale business during the session. February lean hogs closed $.67 higher at $71.45 and April lean hogs closed $.40 higher at $77.97. 

Cash hogs closed higher with the best negotiated run its seen in recent weeks. Processors got a little more aggressive in their procurement efforts and bid up to move needed numbers.  The combination of heavier hog weights and ample supplies of market-ready hogs is slightly concerning because it does add more pork to the market giving packers more leverage.  Weights increased to 293.1 pounds this week, 0.6 pounds above last week and 1.4 pounds more than year-ago levels.  Demand for US pork has been relatively strong on the global market, which does help provide some prices support.  However, domestic demand remains sluggish. Barrows and gilts at the National Daily Direct closed $1.17 higher with a base range of $40 to $48.50 and a weighted average of $47.07; the Iowa/Minnesota closed $1.17 higher with a weighted average of $47.14; the Western Corn Belt closed $1.29 higher with a weighted average of $47.23.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $36. At Illinois, slaughter sow prices were $2 lower with moderate demand for moderate offerings at $23 to $35.  Barrows and gilts were $1 lower with moderate demand for moderate offerings at $24 to $34.  Boars ranged from $10 to $20 and $5 to $10.

Pork values closed higher – up $.73 at $87.79.  There was strength across the board in the primals with ribs and bellies leading the way. Estimated hog slaughter was 489,000 head – up 12,000 on the week and up nearly 7,000 on the year.