Market News

Cattle futures sharply higher waiting for direct business

At the Chicago Mercantile Exchange, live and feeder cattle were sharply higher ahead of the week’s direct business. Boxed beef was also higher at midday.  February lives closed $3.90 higher at $197.60 and Select was $2.75 higher at $198.27.  March feeders closed $3.32 higher at $268.30 and April feeders were $2.92 higher at $269.07. 

It took most of the week for direct cattle business to develop, but it was worth the wait. Live deals in the South were marked at $200, $4 higher than the previous week’s business, and dressed deals in the North were at $320, $5 higher than the previous week’s record-breaking highs.  Asking prices remained firm at $200 to $202 live in the South and $320-plus dressed in the North. 

At the Hub City Livestock Market in South Dakota, steers 550 to 599 pounds were mostly steady, steers 600 to 749 pounds were $6 to $10 higher with instances of up to $15 higher on 700 to 749 pound steers.  Heifers 500 to 549 pounds were $15 to $20 higher, and heifers 600 to 649 pounds were mostly steady.  The USDA says demand was very good for the large offering.  There were many loads and packages to choose from, most were long-weaned and completely vaccinated.  The market was active to very active with both buyers and farmer feeders present.  Receipts were up from Saturday’s offering, but down on the year.  Feeder supply included 62% steers and 60% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 607 to 647 pounds brought $321 to $350.50 and feeder steers 705 to 747 pounds brought $291 to $312. Medium and Large 1 feeder heifers 551 to 599 pounds brought $300 to $332 and feeder heifers 608 to 635 pounds brought $279 to $302.

Boxed beef closed higher on solid demand for moderate offerings.  Choice was $2.17 higher at $330.78 and Select closed $1.46 higher at $308.35.  The Choice/Select spread is $22.43.   Estimated cattle slaughter was 122,000 head – down 3,000 on the week and up about 5,000 on the year.

Lean hog futures ended the day mostly higher on spread trade and technical buying.  February lean hogs closed $2.30 higher at $81.77 and April lean hogs closed $2.27 higher at $87.35. 

Cash hogs closed mixed with a fairly light negotiated run. Processors were able to move needed numbers without having to get too aggressive in their procurement efforts.  Demand for U.S. pork on the global market has been strong, which has been a boost for the industry.  Domestic demand has continued its inconsistency.  The industry continues to monitor the availability of market-ready hogs and hog weights.  Export sales numbers come out Friday. Barrows and gilts at the National Daily Direct closed $.34 higher with a base range of $71 to $81 and a weighted average of $78.85; the Iowa/Minnesota closed $.62 lower with a weighted average of $78.10; the Western Corn Belt closed $.68 lower with a weighted average of $77.91.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $55.

Pork values closed weak – down $.05 at $90.48. Picnics, hams, and butts were all lower.  Ribs, loins, and bellies were higher. Estimated hog slaughter was 488,000 head – down 1,000 on the week and up more than 8,000 on the year.