Market News

Cattle futures sharply higher, lean hogs lower

At the Chicago Mercantile Exchange, live and feeder cattle futures were sharply higher, with feeders continuing to take the lead on the tight supply of market ready numbers. December live was up $.75 at $1.15 and February was $1.50 higher at $242.22. November feeders were $2.57 higher at $268.82 and January was up $4.52 at $363.52.

Cash cattle country remains quiet at mid-week with some asking prices being noted around $235 to $237 in the South. So far, nothing has been established in the North. Significant trade volume could be delayed until Thursday or Friday.

 At the Winter Livestock Auction in Dodge City, Kansas, compared to last week, steers over 700 pounds sold $10 higher while 500 pounds to 650 pounds sold steady to $5 higher, and 300 to 500 pounds sold $5 to $15 lower. Heifers over 600 pounds sold $4 to $12 higher while under 600 pounds sold steady. The USDA says demand was moderate for moderate supply. Feeder supply included 55 percent steers and 69 percent of the offering was over 600 pounds. Medium and large 1 feeder steers 823 to 848 pounds brought $368.85 to $375.50 with an average price of $370.75. Medium and large 1 feeder heifers 705 to 739 pounds brought $363.50 to $369 with an average price of $365.83.

Boxed beef closed mixed. Choice was $.19 higher at $366.16, and Select was $3.64 lower at $345.24. The Choice/Select spread is $20.92.

Estimated cattle slaughter was 118,000 head – up 3,000 on the week and down 7,800 on the year.

Lean hog futures ended an up and down session modestly lower, pressured by higher hog weights and the midday decline in wholesale pork. December was down $.07 at $86.10 and February was $.15 lower at $88.12.

Cash hogs closed higher. Processors were aggressive in meeting their needed near-term numbers. The major direct markets had a weaker undertone at the open, implying some buyers needed to raise bids at least somewhat as the day went on to secure supplies for the back half of the week. Chain speed seems to be running at a good clip and average hog weights are up, putting more pork on the market and pressuring wholesale busine. No export sales numbers from USDA this week due to the partial shutdown of the federal government.

Barrows and gilts at the National Daily Direct closed $.42 higher with a base range of $94 to $101 with a weighted average price of $99.05; Iowa/Southern Minnesota was $.48 higher with a weighted average price of $99.10; the Western Corn Belt was $.49 higher with a weighted average price of $99.09; Eastern Corn Belt did not report due to confidentiality.

Barrows and gilts were trending $2 lower at $70 at the Midwest cash markets in Dorchester, Wisconsin and Garnavillo, Iowa. Illinois slaughter sows were steady with moderate demand for light offerings at $59 to $71, boars were priced at $18 to $35.

Pork values closed $2.21 lower at $103.82. All primal cuts were lower including butts and ribs, which were sharply lower.

Estimated hog slaughter was 489,000 head – up 6,000 on the week and up nearly 4,000 on the year.