Market News

Cattle futures push higher at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the bulk of the week’s direct cash business.  December live cattle closed $1.97 higher at $186.97 and February lives closed $1.92 higher at $191.25.  November feeders closed $1.65 lower at $252 and January feeders closed $1.45 higher at $253.30. 

Wednesday was a fairly active day for direct cash cattle business. Live deals in Kansas and Texas were at $183, $1 higher than the prior week’s weighted averages.  There were also a few bids that surfaced at in other areas at $182 and $185 live, but there weren’t any takers.  More business still needs to develop before the end of the day Friday, especially in the North.   There were also a handful of deals reported in parts of Iowa on Tuesday at $290 dressed and $182 live, but it isn’t enough business to establish an accurate price trend. 

At the Interstate Regional Stockyards in Missouri, feeder steers were $5 to $8 higher, however, some unweaned steers were steady to $5 lower.  Feeder heifers under 500 pounds were $6 to $12 lower and heifers over 500 pounds were $3 to $6 lower.  The USDA says demand was uneven for the moderate offering.  Receipts were up on the week and down on the year.  Feeder supply included 49% steers and 29% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 503 to 526 pounds brought $297 to $300 and feeder steers 550 to 590 pounds brought $274 to $290.  Medium and Large 1 feeder heifers 450 to 476 pounds brought $225 to $249 and feeder heifers 500 to 545 pounds brought $235 to $249. 

Boxed beef closed lower on fairly light demand for solid offerings.  Choice was $.78 lower at $300.28 and Select was $.85 lower at $275.00.  The Choice/Select spread is $24.98.  Estimated cattle slaughter was 126,000 head – up 1,000 on the week and down 2,000 on the year. 

Lean hog futures ended the day lower, pressured by lower pork values during the session and long-term concerns about demand.  December lean hogs closed $1.45 lower at $69.97 and February lean hogs closed $1.02 lower at $74.67. 

Cash hogs closed higher with a fairly light negotiated run.  Processors had to get a little more aggressive in their procurement efforts to get numbers to move.  With near-term supplies of market-ready hogs ample, processers definitely have the upper hand.  Demand for US pork on the global market has been strong. But, there are concerns domestic demand could slump, putting some additional pressure on prices. Hogs weights at the Iowa/Southern Minnesota/South Dakota region are even on the week and down 0.2 of a pound on the year. Barrows and gilts at the National Daily Direct closed $.34 higher with a base range of $69 to $76 and a weighted average of $74.30, the Iowa/Minnesota closed $.08 higher with a weighted average of $74.83; the Western Corn Belt closed $.50 higher with a weighted average of $74.48.  Prices at Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $55. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $20 to $31. Barrows and gilts were steady with moderate demand for moderate offerings at $39 to $49.  Boars ranged from $18 to $21 and $5 to $10. 

Pork values closed lower, down $.68 at $92.09.  Hams, loins, butts, picnics, and ribs were all lower.  Bellies were sharply higher. Estimated hog slaughter was 485,000 head – up 4,000 on the week and down 7,000 on the year.