Market News

Cattle futures up ahead of Friday’s On Feed report

At the Chicago Mercantile Exchange, live and feeder cattle were higher, waiting on the rest of the week’s direct business to develop and Friday’s On Feed report from the USDA.  February live cattle closed $1.05 higher at $201.10 and April lives closed $.95 higher at $200.72.  March feeder cattle closed $1.00 higher at $274.07 and April feeders closed $1.15 higher at $272.45. 

Direct cash cattle trade activity was relatively quiet again on Thursday.  Light trade has just been reported throughout the week.  In the South deals have been marked at $201 to $202, steady to $1 higher than the previous week’s weighted averages.  There were a handful of sales in Nebraska at $322 dressed, while that is $2 higher than the prior week’s weighted average basis in Nebraska, it’s not enough business to establish an accurate trend for the week.  Look for more business to take place before the end of the day Friday.

At the Winter Livestock Market in Kansas, steers over 700 pounds were $7 to $10 higher, while steers under 700 pounds were not well tested.  Heifers over 500 pounds were steady to $7 higher and heifers under 500 pounds were not well tested.  The USDA says demand was good on a moderate supply.  Receipts were down on the week and the year.  Feeder supply included 60% steers and 88% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 752 to 787 pounds brought $266 to $289 and feeder steers 801 to 847 pounds brought $259.75 to $278.50.  Medium and Large 1 feeder heifers 701 to 747 pounds brought $251 to $269 and feeder heifers 801 to 843 pounds brought $238 to $251. 

Boxed beef closed lower on light demand for solid offerings.  Choice was $1.06 lower at $330.94 and Select closed $.78 lower at $317.21.  The Choice/Select spread is $13.75. Estimated cattle slaughter was 123,000 head – down 1,000 on the week and down nearly 3,000 on the year.

Lean hog futures ended the day mixed ahead of the USDA’s production numbers. February lean hogs closed $.65 higher at $82.12 and April lean hogs closed $.07 lower at $87.20. 

Cash hogs closed higher with a fairly light negotiated run. While there wasn’t a huge run on Thursday, processors did bid up to move needed numbers.  Demand for U.S. pork on the global market has been strong, which has continued to be a bright spot for the industry. Export Sales were delayed due to the holiday and will come out Friday.  Domestic demand has been inconsistent at best, which has been creating some uncertainty in the market.  The industry is also monitoring talk about potential tariffs, which put pressure on prices in the coming weeks. Barrows and gilts at the National Daily Direct closed $.99 higher with a base range of $76 to $84 and a weighted average of $82.25.  Prices at the Regional Direct Markets were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $55. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $40 to $51.  Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56.  Boars ranged from $20 to $30 and $15 to $25.

Pork values closed higher – up $1.60 at $91.77.  All of the primals but picnics were higher. Estimated hog slaughter was 472,000 head – down 10,000 on the week and down more than 6,000 on the year.

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