Market News

Cattle, hog futures lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were lower on profit-taking, watching direct business unfold.  February live cattle closed $1.37 lower at $167.22 and April lives closed $1.45 lower at $170.95.  January feeder cattle closed $1.87 lower at $217.37 and March feeders closed $1.75 lower at $217.85. 

There was another light round of direct cash cattle business on Wednesday.  Deals in the North were at $168 live and $267 dressed.  That’s about $3 below last week’s weighted averages and steady with Tuesday’s business.  Neither day has had enough business to establish an accurate price trend.  Look for more trade activity to pick up over the balance of the week.

At the Interstate Regional Stockyards in Missouri, feeder steers were steady to $2 higher, however, some around 500 pounds were $5 to $10 lower.  Feeder heifers under 600 pounds were $3 to $6 higher and heifers over 600 pounds were steady.  The USDA says there were several good-sized consignments of weaned, vaccinated cattle.  Receipts were down on the week and the year.  Feeder supply included 67% steers and 51% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 605 to 646 pounds brought $230 to $240 and feeder steers 650 to 658 pounds brought $225 to $238.50.  Medium and Large 1 feeder heifers 550 to 589 pounds brought $220 to $235 and feeder heifers 663 to 668 pounds brought $199 to $208. 

Boxed beef closed mixed on light to moderate demand for solid offerings.  Choice was $1.14 lower at $291.64 and Select closed $.55 higher at $259.21.  The Choice/Select spread is $32.43.  Estimated cattle slaughter was 127,000 head – up 2,000 on the week and up 10,000 on the year. 

Lean hog futures were lower as long-term concerns about demand linger. February  lean hogs closed $1.52 lower at $66.72 and April lean hogs closed $1.10 lower at $74.37. 

Cash hogs closed higher with fairly light negotiated purchases.  Processors had to bid up to move needed numbers Wednesday afternoon.  While prices were up, the cash hog market, overall, continues to struggle.  Hog weights might have been steady this week, but weights are still up significantly from year-ago levels, and total hog numbers are up.  The increased production combined with ample supplies of market-ready hogs gives packers the leverage to do business as they please. Barrows and gilts at the National Daily Direct closed $.88 higher with a base range of $43 to $50 and a weighted average of $49.65; the Iowa/Minnesota closed $.69 higher with a weighted average of $49.60; the Western Corn Belt closed $.94 higher with a weighted average of $49.60; the Eastern Corn Belt has no comparison but a weighted average of $49.71.

Butcher hog prices at the Midwest cash markets were steady at $45.  At Illinois, slaughter sow prices were $1 lower with moderate demand for heavy offerings at $33 to $45.  Barrows and gilts were $2 lower with moderate demand for moderate offerings at $29 to $39.  Boars ranged from $10 to $20 and $5 to $10.

Pork values about steady – down $.03 at $83.93. Bellies were sharply lower.  Butts were also lower.  Loins, hams, ribs, and picnics were firm to higher. Estimated hog slaughter was 489,000 head – up 2,000 on the week and up 1,000 on the year.  Tuesday’s hog slaughter has been revised to 474,000 head.