Market News

Cattle, lean hog futures higher on Monday

At the Chicago Mercantile Exchange, live and feeder cattle futures were sharply higher Monday, supported by tight supplies, strong beef demand, and the recent direct cash business. Last week’s USDA Cattle Inventory numbers confirmed those tight supplies and limited signs of near-term expansion. April live was up $2.72 at $239.52 and June was $2.52 higher at $234.25. March feeders were $6.07 higher at $366.35 and April was up $5.90 at $364.17.

Direct cash cattle trade was quiet with bids and asking prices not established, significant trade volume will likely be delayed until much later in the week. New showlists appear to be lower in all major feeding areas, somewhat lower in Texas, but lower in Kansas, Nebraska/Colorado.

At the Dunlap, Iowa, livestock feeder cattle auction, compared to last week there were more offerings. They consisted of four loads. Plenty of half loads with smaller packages. The USDA says there was good demand throughout the sale, both in the arena and online. Feeder supply included 51 percent steers and 80 percent of the offering was over 600 pounds. Medium and large 1 feeder steers 652 to 690 pounds brought $399 to $437.50 with an average price of $427.05. Medium and large 1 feeder heifers 651 to 695 pounds brought $360 to $382 with an average price of $371.26.

Boxed beef closed higher. Choice was $2.65 higher at $368.21, and Select was $2.97 higher at $364.91. The Choice/Select spread is $3.30.

Estimated cattle slaughter was 108,000 head, up 1,000 on the week, but down 5,000 on the year.

Lean hog futures were up on the midday gain in the pork carcass cutout value and generally solid demand, along with the strength in cattle futures. The trade is also waiting to see if last week’s renewed packer interest carries over to this week. April lean was $1.47 higher at $96.62 and June was up $1.85 at $109.77.

Cash hogs closed lower with a very light negotiated run. The cash hog market continues to start the week slow with processors maintaining leverage. They haven’t been very aggressive in their procurement efforts. There are ample hog supplies with numbers of market-ready hogs in good shape and hog weights moving higher. The industry is closely monitoring global and domestic demand, which has been good recently. There continues to be some long-term concerns.

Barrows and Gilts at the National Daily Direct were $1.35 lower with a base range of $80.50 to $87 with a weighted average price of $82.22. The regional markets did not report due to confidentiality reasons but the five-day rolling average for Iowa/Minnesota is $85.87 and the Western Corn Belt is $85.91.

Butcher hog prices were steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $43 to $55. Barrows and gilts were $2 higher with moderate demand for moderate offerings at $42 to $52. Boars ranged from $8 to $15 and $5 to $8.

Pork values closed $1.48 higher at $95.70. Picnics and ribs were higher. Loins, butts and bellies were sharply higher. Hams were lower.

Estimated hog slaughter is 461,000, 35,000 higher for the week but down 15,000 on the year.