Market News

Direct cattle business gets underway

Chicago Mercantile Exchange live cattle futures were higher, supported by cash and wholesale business. Trade volume was light and the biggest gain was in soon to expire December. That contract gained $2.72 to $118.70 and February was up $.57 at $117.95.

Feeder cattle futures were mostly lower on spread trade and the firm corn. January was the only contract in the black, up $.20 at $131.92, and March was down $.15 at $126.80.

Direct cash cattle business was underway in the North by Thursday afternoon. DTN reported trade at $188 to $190 dressed in Nebraska and Iowa, $10 to $12 higher than last week’s weighted average for Nebraska. Live sales were reported at $118 in Colorado and $120 in Iowa. The South was quiet with bids at $118 live and asking prices around $121+.

Boxed beef closed higher on moderate demand for light offerings. Choice was up $1.63 at $203.47 and Select was $.74 higher at $193.89. The estimated cattle slaughter of 116,000 head was up 1,000 on the week and 29,000 on the year.

In a special precondition sale Wednesday in Bloomfield, Iowa, the USDA says all offerings had two rounds of shots, were weaned at least 45 days, with a number of load lots. Trade and demand were both called very good. 63% of the offering weighed more than 600 pounds. 601 to 691 pound feeder steer calves sold at $130.75 to $144.50 and 754 to 771 pound steer calves brought $133.50 to $136.75. 556 to 583 pound feeder heifers were reported at $127.75 to $135.50 and 651 to 671 pound heifer calves ranged from $123.25 to $125.85.

Lean hog futures were mostly higher, unwinding some of the spreads put in place earlier in the week. Trade volume was also light for hogs. Contracts are carrying a significant premium to cash, but that may not be much of a factor until we get closer to February’s expiration. February was down $.45 at $64.65 and April was up $.15 at $66.22.

Cash hog business was just about unchanged, stabilizing after a sharply lower open at the major direct markets. Market ready numbers are ample and buyers haven’t found a lot of resistance in this holiday shortened week. The trade is also expecting a big Saturday kill to make up for some of the recent slowdowns, with many estimates around 350,000 head.

Iowa/Southern Minnesota direct barrows and gilts closed $.07 higher at $45 to $53 for a weighted average of $51.82, the Western Cornbelt was $.06 lower at $45 to $53 with an average of $51.75, and national direct trade was down $.08 at $45 to $53 for an average of $51.81. Butcher hogs at the Midwest cash markets were steady at $33 to $40. Missouri direct butcher trade was steady at $46 to $48 with supply and demand called light to moderate. Missouri sows were steady at $14 to $22. Illinois direct sows were steady at $15 to $26 on moderate demand for moderate to heavy offerings. Illinois boars ranged from $6 to $18.

Pork closed $1.16 lower at $81.08. Butts were firm, all other primals were lower, including a $2.45 drop in hams and $2.12 decline in picnics. The estimated hog slaughter of 444,000 head was 39,000 more than last week and 66,000 above last year.