Market News

Cattle futures sharply lower to finish the week

At the Chicago Mercantile Exchange, live cattle were sharply lower, and feeders were limit down on the talk of government intervention to lower beef prices.  December live cattle closed $6.04 lower at $241.82 and February live cattle closed $6.72 lower at $242.82.  November feeder cattle closed $9.25 lower at $371.70 and January feeder cattle closed $9.25 lower at $369.30. 

The bulk of the week’s direct cash cattle trade held out until Friday.  Live deals in the South were at $240, $5 higher than the prior week’s weighted averages.  Dressed business in the North was at $372, $9 higher than the prior week’s weighted average basis in Nebraska. 

At the Ogallala Livestock Markets in Nebraska, steers were $5 to $20 higher.  Heifers were $5 to $25 higher.  The USDA says replacement-type heifers were in high demand.  The market was active both in-house and online.  Demand was good for the entire offering.  Receipts were up on the week and the year.  Feeder supply included 65 percent steers and 39 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 508 to 549 pounds brought $482 to $532.50 and feeder steers 602 to 640 pounds brought $432 to $456.  Medium and Large 1 feeder heifers 450 to 494 pounds brought $450 to $466 and feeder heifers 603 to 624 pounds brought $411 to $435. 

Boxed beef closed higher with solid demand for heavy offerings.  Choice was $.66 higher at $366.77 and Select was $1.32 higher at $350.27.  The Choice/Select spread was $16.50. Estimated cattle slaughter was 92,000 head, up 1,000 on the week and down more than 15,000 on the year.  Saturday’s estimated kill is 9,000 head, down 1,000 on the week and down more than 14,000 on the year. 

Lean hog futures closed mixed, adjusting spreads based on demand expectations. December lean hogs closed $.22 lower at $82.37 and February lean hogs closed $.32 lower at $84.77. 

Cash hogs closed lower with a light negotiated run. Processors needed numbers on hand and weren’t too aggressive in their procurement efforts to end the week.  Demand for U.S. pork remains a question.  While domestic demand is likely continuing to benefit from pork’s competitive price in the retail space, global demand is unclear.  The loss of export and trade data due to the continued partial shutdown of the U.S. government leaves a very foggy picture.   Barrows and gilts at the National Daily Direct closed $1.33 lower with a base range of $94 to $92 and a weighted average of $90.14; the Iowa/Minnesota closed $3.23 lower with a weighted average of $90.06; the Western Corn Belt closed $3.11 lower with a weighted average of $90.18; the Eastern Corn Belt had a weighted average of $90.97.

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were mostly $2 higher, and feeder pigs were steady.  Demand was moderate on moderate offerings.  The weighted average for all early-weaned pigs was $64.68 and the weighted average for all feeder pigs was $80.27. 

Butcher hog prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $57 to $69.  Barrows and gilts were $3 lower with moderate demand for moderate offerings at $57 to $67.  Boars ranged from $25 to $35 and $18 to $25.

Pork values closed higher, up $.53 at $102.70.  Bellies were sharply higher.  Hams were up.  Ribs, picnics, loins, and butts were all lower. Estimated hog slaughter was 443,000 head, down 35,000 on the week and down more than 33,000 on the year.  Saturday’s estimated kill is 185,000 head, up 32,000 on the week and down more than 11,000 on the year.