Market News

Cattle futures supported by strong cash business

At the Chicago Mercantile Exchange, live and feeder cattle were up, supported by cash business.  February lives closed $2.00 higher at $189.02 and April lives closed $1.70 higher at $190.65.  January feeder cattle closed $1.52 higher at $257.32 and March feeders closed $2.25 higher at $257.45. 

Direct cash cattle trade got underway Tuesday with a light round of business in Kansas.  Deals were marked at $191 live, which is fully steady with the previous week’s weighted averages.  Asking prices were firm at $192-plus live in the South, while the North remained quiet.  Look for more business to develop over the balance of the week.

At the Callaway Livestock Center in Missouri, steer calves under 450 pounds sold with a sharply higher undertone, steers 450 to 650 pounds were steady to firm with instances of $3 to $5 higher, and steers over 650 pounds sold with a higher undertone on the limited offering last week.  Feeder heifers 400 to 500 pounds were firm to $5 higher, heifers 500 to 600 pounds were steady to $3 higher, heifers 600 to 650 pounds were steady to firm.  The USDA says demand was good to very good on a heavy supply.  There was a very attractive offering of steer and heifer calves that weighed 400 to 650 pounds.  Quality ran deep and all sold on an active market.  Receipts were up on the week and the year.  Feeder supply included 58% steres and 50% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 597 pounds brought $309 to $328 and feeder steers 650 to 688 pounds brought $275.50 to $299.  Medium and Large 1 feeder heifers 503 to 546 pounds brought $288 to $305 and feeder heifers 600 to 649 pounds brought $269 to $280. 

Boxed beef closed mixed on light to moderate demand for moderate offerings. Choice was $2.41 lower at $311.73 and Select closed $.31 higher at $279.65.  The Choice/Select spread is $32.08. Estimated cattle slaughter was 120,000 head – down 5,000 on the week and down nearly 7,000 on the year.

Lean hog futures were pressured by cash and wholesale business.  February lean hogs closed $1.92 lower at $84.57 and April lean hogs closed $2.30 lower at $88.90. 

Cash hogs closed higher with a big negotiated run. Processors got aggressive in their procurement efforts Tuesday afternoon, bidding up to move needed numbers.  Demand for U.S. pork on the global remains strong, which has been a bright spot for the market.  But there is ongoing uncertainty about domestic demand strength.  The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct were $1.09 higher with a base range of $76 and $85 and a weighted average of $82.11; the Iowa/Minnesota closed $2.06 higher with a weighted average of $82.56; the Western Corn Belt closed $.81 higher with a weighted average of $82.21; no comparison at the Eastern Corn Belt were $79.73. 

Butcher hog prices at the Midwest cash markets are steady at $52. At Illinois, slaughter sow prices were $2 lower with moderate demand for heavy offerings at $34 to $46.  Barrows and gilts were steady with moderate demand for moderate offerings at $50 to $60.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed lower – down $.49 at $93.14.  Ribs were sharply lower.  Butts, hams, and bellies were lower.  Picnics and loins were higher. Estimated hog slaughter was 488,000 head – up 1,000 on the week and up about 12,000 on the year.