Market News

Cattle futures pressured by cash business

Live and feeder cattle were lower watching direct cash business unfold.  December lives closed $3.02 lower at $174.75 and February live cattle closed $3.45 lower at $175.32.  January feeders closed $3.40 lower at $227.50 and March feeders closed $3.40 lower at $230.10.  

There was a light to moderate direct cash cattle trade on Thursday.  Deals in the South were at $178 live, $2 to $3 lower than the previous week’s weighted averages.  Dressed deals were at $282, about $4 lower than the prior week’s weighted average basis.  

At the Huss Livestock Market in Nebraska, steer calves sold $2 to $10 higher.  Heifer calves 450 to 600 pounds were steady to $3 lower with heifers 600 to 700 pounds were $5 higher.  About 40 percent of the run consisted of weaned calves and yearlings.  The USDA says demand was moderate from the buyers in the crowd.  Receipts were up on the week and down on the year.  Feeder supply included 59% steers and 56% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 562 to 590 pounds brought $261.50 to $266 and feeder steers 660 to 697 pounds brought $259 to $269.  Medium and Large 1 feeder heifers 500 to 545 pounds brought $240.50 to $253.50 and feeder heifers 600 to 632 pounds brought $237 to $247.  

Boxed beef closed lower on light to moderate demand for moderate offerings.  Choice closed $1.61 at $294.72 and Select closed $.20 lower at $267.65.  The Choice/Select spread is $27.07.  Estimated cattle slaughter 119,000 head – down 3,000 on the week and down 7,000 on the year.  

Lean hog futures closed higher on oversold signals.  December lean hogs closed $.42 higher at $71.47 and February lean hogs closed $.72 higher at $75.62.   

Cash hogs closed higher with a moderate negotiated run. Processors had to bid up to move needed numbers today.  While today might have been a bright spot for the week in the cash hog market, overall the market has struggled.  The ample supplies of market-ready hogs allow processors to have more leverage and move hogs as desired.  While demand for US pork on the global market remains relatively strong, there are long-term concerns.  And domestic demand continues to struggle.  Barrows and gilts at the National Daily Direct closed $.91 higher with a base range of $58 to $70 and a weighted average of $63.99; the Iowa/Minnesota closed $1.70 higher with a weighted average of $63.90; the Western Corn Belt closed $1.88 higher with a weighted average of $63.86.  Prices at the Eastern Corn Belt were not reported due to confidentiality.  

Butcher hog prices at the Midwest cash markets were steady at $60.  At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $43 to $56.  Barrows and gilts were steady with moderate demand for moderate offerings at $40 to $50.  Boars ranged from $18 to $21 and $5 to $10.  

Pork values closed lower – down $.90 lower at $85.92.  Has, ribs, picnics, and loins were sharply lower to lower.  Butts and bellies were higher.  Estimated hog slaughter was 488,000 head – up 19,000 on the week and up 2,000 on the year.