Market News

Feeder cattle, lean hog futures close lower Thursday

Chicago Mercantile Exchange live and feeder cattle were lower on the signs of slowing beef demand and follow through selling ahead of this week’s direct trade. December live was down $.22 at $223.55 and February was $.70 lower at $225.85. November feeders were $.92 lower at $334.87 and January was down $1.97 at $328.42.

Direct cash cattle trade activity remains slow. Bids of $340 to $345 dressed are currently on the table in Nebraska, but otherwise no packer interest has developed. There is still a chance that trade could be delayed until sometime on Friday. Feedlot managers could be holding out to see if packer demand improves.

At Clarinda Livestock in Iowa on Thursday, feeder steers sold with a higher undertone and heifers were selling mostly $4 to $15 higher. USDA says demand was good for a moderate supply. Feeder supply included 47% steers and 60% of the offering was over 600 pounds. Medium and Large 1 feeder steers 552 to 588 pounds brought $393 to $427. Medium and Large 1 feeder heifers 958 pounds sold for $294.25.

Boxed beef closed lower with Choice down $.77 at $374.85 and Select $2.48 lower at $351.73. The Choice/Select spread was $23.12.

Estimated cattle slaughter was 101,000 head – down 8,000 on the week and down more than 12,000 on the year.

Lean hog futures were down modestly on technical weakness and the recent trend in wholesale pork. December was $.50 lower at $68.60.

Cash hogs were mixed with a very light negotiated run at the major direct markets to end the day, only adding a handful of head between the open and close. It looks like most buyers were just clearing up their near-term needs after moving solid numbers earlier in the week at lower prices. If buyers still have some empty slots, there could be some firm trade to end the week, but that will also depend on demand. Demand’s good, but weights are above a year ago and the processing pace remains at relatively high levels, keeping plenty of pork on the market and pressuring the cutout value.

Barrows and gilts at the National Daily Direct closed $.07 higher with a base range of $69 to $80. The Iowa/Minnesota was up $.61 at $73.32. The Western Corn Belt was also $.61 higher at $73.32. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady with barrows and gilts priced at $60 in Dorchester, Wisconsin.

At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $45 to $57. Barrows and gilts were down $2 at $51 to $61. Boars were marked at $15 to $35.

Pork values closed $2.07 lower at $79.64. Picnics were higher. All other primal cuts were lower.

Estimated hog slaughter was 493,000 head – up 16,000 on the week and up nearly a thousand on the year.