Market News

Cattle futures surge on post-holiday rally as markets react to Mexico border comments

At the Chicago Mercantile Exchange, live and feeder cattle futures continued to rally in the post-holiday session.  The market is likely reacting to the Secretary of Agriculture’s comments relating to the reopening of Mexico’s border, and that it will be a slow resumption of trade. December live cattle closed $4.50 higher at $215.57. February live cattle was $4.92 higher at $217.85. January feeder cattle closed $8.85 higher at $323.97. March was $8.80 higher at $317.85.

Direct cash cattle trade had some clean up business take place on Friday. Some light trade was reported in parts of Kansas and Texas at $220 on a live basis. More than 550 head were sold. That price of $220 was $2 to $4 lower from the previous week’s weighted averages. No new dressed deals developed in the North.

At the Sioux Falls Regional Cattle Auction this week, feeder steers and heifers had mostly lower undertones. Yearling feeders were $30 to $50 lower compared to the most recent sale. USDA says there was light to moderate demand for the limited offering. Feeder supply included 45% steers and 91% of the offering was over 600 pounds. Medium and Large 1 feeder steers 874 pounds brought $292. Medium and Large 1 feeder heifers 857 pounds sold for $271.

Boxed beef closed lower with Choice down $1.46 at $366.82 and Select down $4.46 at $351.05. The Choice/Select spread was $15.77.

Estimated cattle slaughter was just 1,000 head – down from 116,000 head last week and down from 2,603 from one year ago.

Hogs were mixed as the market continues to look for signs of support.  Hog weights are creeping higher and demand remains uncertain.  December lean hogs were $.17 higher at $80.60, and February closed $.37 lower at $81.

Cash hogs were mixed at the close. Barrows and gilts at the National Daily Direct were down $1.48 with a base range of $65 to $76. The weighted average was $72.09. The Iowa/Minnesota was up $4.71 with a weighted average of $72.56. The Western Corn Belt was $4.40 higher at $72.56. The Eastern Corn Belt was not reported due to confidentiality.

No prices were reported Friday for butcher hogs in Dorchester, Wisconsin and Garnavillo, Iowa. Additionally, the Illinois slaughter sow market was closed as well. Back on Wednesday leading into the Thanksgiving break, Illinois slaughter sows were trending $3 lower with moderate demand for moderate offerings. Barrows and gilts on Wednesday were steady with moderate demand for moderate offerings from $42 to $55. Boars ranged from $20 to $30 and $15 to $20.

Pork values closed lower – down $.03 at $94.22. Butts, ribs, hams, and bellies were higher. Loins and picnics were lower.

Estimated hog slaughter was zero due to the Thanksgiving holiday. Last week, daily hog slaughter was 494,000 head, and one year ago hog slaughter was just 103 total head.