Market News

Direct cattle bids start to surface

Chicago Mercantile Exchange live cattle futures were mixed, getting ready for the week’s direct business, and feeders were up on the lower corn. December live was down $.37 at $184.02 and February was $.05 lower at $186.07. January feeders were up $.07 at $243.65 and March was $.47 higher at $242.20.

Direct cash cattle markets remain at a standstill. Asking prices have been refreshed at $188 to $189 on the live basis in the south, while there are no reported asking prices yet for the dressed basis in the north. Bids have surfaced at $185 live in Texas and Nebraska and $290 dressed in Nebraska. Packer inquiry should continue to improve, but widespread trade could wait until Thursday or Friday.

At the Winter Livestock sale in Kansas, compared to the previous week, feeder steers weighing more than 700 pounds were $3 to $6 higher, with steers under 700 pounds $15 higher, and several weaned calves selling $20 to $30 higher. Heifers weighing more than 650 pounds were steady to $5 higher, with heifers under 650 pounds up $20. The USDA says demand was good for a light to moderate supply, with receipts down on the week and the year. 54% of the feeder offering were heifers, while 59% of the feeder run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 550 to 650 pounds sold at $274 to $313 and 750-to-850-pound steers ranged from $240 to $271. Medium and Large 1 feeder heifers weighing 500 to 600 pounds were reported at $243 to $287.50 and 600-to-700-pound heifers brought $231 to $253.

Boxed beef closed lower with moderate movement. Choice was down $1.33 at $306.94 and Select beef was $1.26 lower at $278.66. The estimated cattle slaughter of 125,000 head was unchanged on the week and up 765 on the year.

Lean hog futures were mixed, on spread trade, the higher midday pork, and the ongoing questions about sustained domestic demand. The USDA’s weekly export sales numbers are delayed until Friday. December was down $.47 at $81.87 and February was $.30 lower at $86.02.

Cash hogs were steady to sharply higher with large closing negotiated numbers at the major direct markets. It looks like most buyers were still in need of some near-term supplies. The rest of the week should see much quieter activity with buyers and sellers both watching demand signals, including the wholesale market. The average barrow and gilt weight in the Iowa/Southern Minnesota/South Dakota reporting area for the week ending November 9^th was 286.6 pounds, up eight tenths on the week, but down seven tenths on the year.

National direct barrows and gilts closed $4.15 higher with a base price range of $80 to $91 for a weighted average of $88.94, with Iowa/Southern Minnesota up $3.44 at $88.96 and the Western Corn Belt $4.06 higher at $88.96. The Eastern Corn Belt was not reported due to confidentiality with a five-day rolling average of $79.35.

Butcher hogs at the Midwest cash markets in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $60. Illinois direct sows were steady at $51 to $62 with moderate demand for heavy offerings. Barrows and gilts were $1 higher at $47 to $57 on moderate demand and offerings. Boars ranged from $15 to $30.

Pork closed $.42 lower at $97.26. Butts, picnics, ribs, hams, and bellies were weak to sharply lower, while loins were modestly higher. The estimated hog slaughter of 488,000 head was up 1,000 on the week and 1,871 on the year.