Market News

Cattle futures up on strong cash trade

At the Chicago Mercantile Exchange, live and feeder cattle were higher, supported by higher cash business during the session.  December live cattle closed $1.10 higher at $188 and February lives closed $.90 higher at $188.60.  January feeder closed $.67 higher at $258.77 and March feeder cattle closed $.82 higher at $257.30. 

Direct cash cattle trade got underway Wednesday at much higher prices.  Live deals in the South were marked at $190, $3 to $4 higher than the previous week’s business.  Dressed deals in North were marked at $295, $5 higher than the prior week’s weighted average basis in Nebraska. Those are marked for delayed delivery.  Look for the rest of the week’s business to develop sometime on Friday.

At the Ozarks Regional Stockyards in Missouri, steer calves under 700 pounds were uneven from $4 lower to $4 higher, except for three weights which were $20 higher.  Heifer calves under 700 pounds were $4 to $8 higher with spots of $12 higher.  Yearling steers were $4 to $8 higher with yearling heifers were not well tested.  The USDA says demand was very good on a moderate supply.  Receipts were down on the week and the year.  Feeder supply included 55% steers and 54% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 631 pounds brought $270 to $298 and feeder steers 766 pounds brought $267.25.  Medium and Large 1 feeder 503 to 546 pounds brought $267.50 to $286 and feeder heifers 609 to 629 pounds brought $252.50 to $262.50.

Boxed beef closed lower on light demand for heavy offerings. Choice was $.31 lower at $311.26 and Select closed $1.19 lower at $274.30.  The Choice/Select spread is $36.96. Estimated cattle slaughter was 124,000 head – down 3,000 on the week and down about 2,000 on the year.

Lean hog futures ended the day were mostly higher on spread trade.  December lean hogs closed $.70 lower at $82.40 and February lean hogs closed $.35 lower at $87.92. 

Cash hogs closed lower with a moderate negotiated run.  Processors moved decent number without having to get aggressive in their procurement efforts. Demand for U.S. pork on the global market has been strong, that’s helping provide some price support.  But the industry continues to monitor what’s happening on the domestic demand market. Hog weights are up more than a pound on the week, but are down more than a pound on the year. Barrows and gilts at the National Daily Direct were $.40 lower with a base range of $76 to $88.25 and a weighted average of $87.46; the Iowa/Minnesota closed $.27 lower with a weighted average of $87.53; the Western Corn Belt closed $.11 lower with a weighted average of $87.71.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

At Illinois, slaughter sow prices were $1 lower with moderate demand for light offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed lower – down $2.21 at $88.94.  Bellies, hams, and ribs were all sharply lower.  Picnics, butts, and loins were higher. Estimated hog slaughter was 488,000 head – even on the week and up about 5,000 on the year.