Market News

Live cattle, hog futures start the week mixed

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were lower ahead of the week’s direct business.  February live cattle closed $.90 higher at $205.67 and April live cattle closed $.80 higher at $203.82.  March feeder cattle closed $1.32 lower at $275.25 and April feeder cattle closed $1.02 lower at $274.42.

Direct cash cattle trade activity had a quiet start to the week, which was not surprising.  Bids and asking prices didn’t surface.  Significant trade volume will likely be delayed until sometime Thursday or Friday.

At the Oklahoma National Stockyards, compared to last week, feeder steers were $5 to $10 higher.  Feeder heifers were $5 to $8 higher.  Steer and heifer calves were unevenly steady.  The USDA says demand was good, and quality was average to attractive.  Receipts were up on the week and the year.  Feeder supply included 58% steers and 65% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 617 to 646 pounds brought $309 to $322 and feeder steers 705 to 743 pounds brought $282 to $295. Medium and Large 1 feeder heifers 656 to 694 pounds brought $271 to $296 and feeder heifers 776 to 797 pounds brought $249 to $260.50.

Boxed beef closed higher and sharply higher on good demand for solid offerings.  Choice was $2.16 higher at $330.08 and Select closed $4.26 higher at $320.55.  The Choice/Select spread was $9.53.  Estimated cattle slaughter was 114,000 head – down 1,000 on the week and down more than 8,000 on the year.

Lean hog futures ended the day mixed on spread trade and the higher midday move in pork. February lean hogs closed $.75 higher at $83.05 and April lean hogs closed $1.67 higher at $89.87. 

Cash hogs closed firm to higher with a fairly light negotiated run.  Processors were a little more aggressive in getting hogs moving on Monday, and prices reflected that.  Demand for U.S. pork on the global market remains a bright spot, but domestic demand remains inconsistent.  The industry continues to monitor tariff talk and the potential impact it could have on demand for U.S. agricultural goods – specifically pork.  Supplies of market-ready hogs appear ample, ensuring there is plenty of pork to move. Barrows and gilts at the National Daily Direct closed $.01 higher with a base range of $77 to $85 and a weighted average of $80.39; the Iowa/Minnesota closed $1.21 higher with a weighted average of $82.26; the Western Corn Belt closed $.68 higher with a weighted average of $81.51.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are $2 higher at $57. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $40 to $51.  Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed higher – up $1.47 at $93.16.  Butts, ribs, and loins were all sharply higher.  Picnics and hams were lower. Estimated hog slaughter was 483,000 head – up 61,000 on the week and down more than 6,000 on the year.