Market News

Cattle, hog futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct business.  December live cattle closed $1.15 higher at $184.10 February lives closed 72 cents higher at $185.97. January feeder cattle closed $2.27 higher at $249.50 and March feeder cattle closed $2.97 higher at $248.62.

Direct cash cattle trade activity had a typically quiet start to the week.  Showlists this week are mixed – higher in Kansas, but lower in Nebraska/Colorado, and Texas. Bids and asking prices weren’t established, and significant trade volume isn’t expected until the back half of the week

At mid-session at the Oklahoma National Stockyards, feeder steers, and feeder heifers were steady in a light test.  Steer and heifer calves over 450 pounds were steady, and those under 450 pounds were $10 higher.  The USDA says quality was mostly plain, but demand was good.  Receipts were up on the week and the year.  Feeder supply included 60% steers and 34% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 592 pounds brought $282 to $299 and feeder steers 710 to 747 pounds brought $250 to $264.  Medium and Large 1 feeder heifers 506 to 548 pounds brought $259 to $274 and feeder heifers 550 to 592 pounds brought $247 to $259.

Boxed beef closed mixed with solid and light demand for moderate offerings.  Choice was $3.94 higher at $307.28 and Select closed $.69 lower at $275.45.  The Choice/Select spread is $31.83. Estimated cattle slaughter was 118,000 head – up 6,000 on the week and down nearly 9,000 on the year.

Lean hog futures ended the day higher, supported by the steady to higher cash business during the session. December lean hogs closed $.52 higher at $80.02 and February lean hogs closed $.37 higher at $83.27.

Cash hogs closed lower with a fairly light negotiated run.  Processors have been taking a “wait and see” approach as they gauge retail buying interest.  Demand for U.S. pork on the global market has been strong, helping provide some price support, but domestic demand has been inconsistent, creating uncertainty in the market.  The industry is monitoring the availability of market-ready hogs, as it appears supplies may be tighter than estimated. Barrows and gilts at the National Daily Direct were down $1.35, with a base range of $75 to $86 and a weighted average of $83.32.  Prices at the Regional Direct Markets were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $60. 

Pork values closed weak – down just $.04 at $97.07.  Ribs, bellies, picnics, and hams were lower.  Butts and loins were higher. Estimated hog slaughter was 489,000 head – up 31,000 on the week and up about 2,500 on the year.