Market News

Cattle futures under pressure, lean hogs move higher

At the Chicago Mercantile Exchange, live and feeder cattle futures were pressured by technical selling as traders watched the distribution of the showlist. Boxed beef was up at midday, but that’s been inconsistent recently. December live was down $1.50 at $219.97 and February was $1.10 lower at $222.05. November feeders were $1.02 lower at $330.12 and January was down $1.95 at $322.60.

Direct cash cattle trade remains quiet.  Showlists were lower in Texas and Nebraska, but slightly higher in Kansas. No bids surfaced in the fed cash cattle market, and asking prices were elusive. The bulk of the trade could occur later this week.

At the Lexington Livestock Market in Nebraska, compared to two weeks ago, steers 400 to 600 pounds sold steady to $10 higher and feeder heifers 800 to 1000 pounds sold steady to $5 lower. The USDA says demand was moderate to good. Receipts were down on the week and year. Feeder supply included 47 percent steers and 28 percent of the offering was over 600 pounds. Medium and large 1 feeder steers 561 to 571 pounds sold with an average price of $420. Medium and large 1 feeder heifers 943 to 948 pounds sold with an average price of $298.49.

Boxed beef closed sharply higher with Choice $4.07 higher at $378.23, and Select was $4.08 higher at $358.57. The Choice/Select spread is $19.69.

Estimated cattle slaughter was 105,000 head, up 10,000 on the week and 5,000 on the year.

Lean hog futures were supported by short covering, in addition to the cash and wholesale business during the session. December was up $.82 at $70.95 and February was $1.37 higher at $72.70.

Cash hogs closed lower solid negotiated run. It’s another inconsistent start to the week. Packers have not been as aggressive in their procurement efforts.  Demand continues to be a bright spot for the industry, but there are some concerns globally and domestically. The industry continues to monitor the available supplies of market-ready hogs and hog weights.

Barrows and gilts at the National Daily Direct closed $.42 lower with a base range of $67 to $82 with a weighted average price of $76.81. The regional markets had no comparison, but the weighted average price for Iowa/Minnesota was $76.46 and the Western Cornbelt was $76.38.

Butcher hog prices at the Midwest cash markets were steady at $60.At Illinois, slaughter sows were steady with moderate demand for light offerings from $43 to $55. Barrows and gilts prices were steady with moderate demand for moderate offerings at $53 to $63. Boars ranged from $25 to $35 and $15 to $20.

Pork values closed $1.53 higher at $86.01. Loins, picnics and ribs were sharply higher. Bellies were higher and butts and hams were lower.

Estimated hog slaughter was  493,000 head, up 9,000 on the week and 2,000 on the year.