Market News

Cattle, hog futures lower heading into Friday

At the Chicago Mercantile Exchange, live cattle were lower, and feeders were sharply lower on technical liquidation.  The market has struggled to shake the negativity in the market. December live cattle closed $1.27 lower at $218.77 and February live cattle closed $1.37 lower at $216.75.  January feeder cattle closed $4.37 lower at $315.60 and March feeder cattle closed $4.67 lower at $311. 

There was a very light, very scattered direct cash cattle trade that was reported on Thursday.  Dressed deals in the North had a range of $355 to $362, mostly $360, $2 higher than the prior week’s weighted average basis in Nebraska.  Live deals in the South were at $230 to mostly $232, $4 below the prior week’s weighted averages. 

At the Winter Livestock Auction in Kansas, steers and heifers were $5 to $20 lower across all weight classes.  The USDA says larger, reputation lots sold better than smaller packages of feeders and calves.  Receipts were up on the week and the year.  Feeder supply included 62 percent steers with 64 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 560 to 578 pounds brought $382.50 to $407 and feeder steers 668 to 695 pounds brought $330 to $345.  Medium and Large 1 feeder heifers 552 to 590 pounds brought $339 to $360 and feeder heifers 605 to 647 pounds brought $313 to $336. 

Boxed beef closed mixed, with light and moderate demand for moderate offerings.  Choice was $.29 lower at $377.97 and Select was $.51 higher at $360.76.  The Choice/Select spread is $17.21.  Estimated cattle slaughter was 112,000 head, down 2,000 on the week and down more than 12,000 on the year. 

Lean hog futures closed lower on technical selling, the market remains concerned about long-term demand.  December lean hogs closed $1.62 lower at $78.97 and February lean hogs closed $1.15 lower at $79.82.

Cash hogs closed lower with a light negotiated run. The cash hog market has slowed to end the week.  Processors were more aggressive in their procurement efforts and were active earlier in the week.  The industry continues to monitor the availability of market-ready hogs and hog weights.  Demand remains the wild card as key export and trade data is missing amid the ongoing shutdown of the U.S. government.  Domestic demand is likely finding some support as pork remains a competitively priced protein in the retail space. Barrows and gilts at the National Daily Direct closed $1.68 lower with a base range of $78 to $86 and a weighted average of $84.31; the Iowa/Minnesota closed $2.28 lower with a weighted average of $84.54; the Western Corn Belt closed $1.75 lower with a weighted average of $84.34.  Prices at the Eastern Corn Belt were not reported due to confidentiality.   

Butcher hog prices at the Midwest cash markets are steady at $68. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $53 to $65.  Barrows and gilts were $4 lower with moderate demand for moderate offerings at $50 to $60.  Boars ranged from $20 to $30 and $15 to $20. 

Pork values closed lower, down $.36 at $97.18. Ribs were sharply lower.  Loins, butts, hams, and picnics were also lower.  Bellies were up. Estimated hog slaughter was 477,000 head, even on the week and down more than 11,000 on the year.