Market News

Cattle futures start the week higher

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct cash business.  February live cattle closed $2.17 higher at $167.90 and April live cattle closed $2.20 higher at $171.50.  January feeders closed $2.65 higher at $217.95 and March feeders closed $2.52 higher at $218.60. 

It was a typically quiet Monday for direct cash cattle business. Showlists this week are mixed – somewhat higher in Texas, but lower in Kansas, Nebraska, and Colorado. There’s been some early-in-the-week business recently, but it’s more than likely significant trade volume will hold out until Wednesday or later. 

At midsession, at the Oklahoma National Stockyards, feeder steers are $1 to $3 higher.  Feeder heifers were not tested in early rounds.  Steer and heifer calves under 450 pounds are $2 to $4 higher, over 450 pounds are $3 to $6 lower.  The USDA says demand was moderate.  Receipts are down on the week and the year.  Feeder supply included 62% steers and 38% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 595 pounds brought $229 to $276 and feeder steers 653 to 698 pounds brought $224.50 to $241.50.  Medium and Large 1 feeder heifers 551 to 591 pounds brought $205 to $227 and feeder heifers 602 to 626 pounds brought $209 to $224. 

Boxed beef closed higher on strong demand for solid offerings.  Choice was $2.42 higher at $290.43 and Select closed $1.64 higher at $259.54.  The Choice/Select spread is $30.89.   Estimated cattle slaughter was 126,000 head – down 1,000 on the week and the year. 

Lean hog futures were lower, as long-term global demand concerns linger. February lean hogs closed $1.65 lower at $67.32 and April lean hogs closed $.80 lower at $75.35. 

Cash hogs closed lower with a light negotiated run.  Prices continue to slide.  There are a few contributing factors.  Supplies of market-ready hogs are ample, giving processors the leverage they need to do business, and hog weights are up, increasing production.  While demand for U.S. pork on the global market has been relatively strong, there are long-term concerns it could wane.  Domestic demand continues to struggle. Barrows and gilts at the National Daily Direct closed $2.22 lower with a base range of $44 to $52 and a weighted average of $49.66; the Iowa/Minnesota closed $2.22 lower with a weighted average of $49.64; the Western Corn Belt closed $1.88 lower with a weighted average of $49.64.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were down sharply in Garnavillo, Iowa to $45. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $36 to $48.  Barrows and gilts were $1 lower with moderate demand for moderate offerings at $33 to $43.  Boars ranged from $10 to $20 and $5 to $10. 

Pork values closed higher – up $.95 at $86.62.  Bellies were sharply higher.  Loins were nearly steady.  Picnics, ribs, hams, and butts were all lower. Estimated hog slaughter was 462,000 head – down 21,000 on the week and down 27,000 on the year.  Friday’s hog slaughter has been revised to 479,000 head and Saturday has been revised to 249,000 head.