Market News

Live cattle, hogs mostly lower to start the week

At the Chicago Mercantile Exchange, live cattle were mostly lower, and feeders were up ahead of the week’s direct business.  Boxed beef was mixed at midday. February live cattle closed $.95 lower at $187.45 and April live cattle closed $.42 lower at $189.79.  January feeder cattle closed $1.00 higher at $356.60 and March feeder cattle closed $.17 higher at $256. 

Direct cash cattle trade activity was typically quiet for a Monday.  Both buyers and sellers were busy preparing for business in the holiday-shortened week ahead. Bids and asking prices didn’t surface.  Significant trade volume will likely be delayed until later in the week.

In Oklahoma last week, feeder steers were $3 to $8 higher.  Feeder heifers were $1 to $3 higher.  Steer calves were $6 to $9 higher and heifer calves were steady.  The USDA says demand was good for pared back activity.  Receipts were down on the week, but up on the year.  Feeder supply included 52% steers and 46% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 597 pounds brought $290 to $362.50 and feeder steers 600 to 648 pounds brought $265 to $330.  Medium and Large 1 feeder heifers 550 to 599 pounds brought $248 to $290 and feeder heifers 600 to 648 pounds brought $245 to $275. 

Boxed beef closer higher on moderate demand for moderate offerings.  Choice was $.13 higher at $315.98 and Select closed $.84 higher at $286.75.  The Choice/Select spread is $29.23. Estimated cattle slaughter was 118,000 head – even on the week.

Lean hog futures ended the day mixed, mostly lower ahead of the USDA’s Quarterly Hogs and Pigs report, which was slightly bearish for the markets.  February lean hogs closed $1.55 lower at $84.37 and April lean hogs closed $.90 lower at $89.62. 

Cash hogs closed higher with a solid negotiated run.  Processors were slow to get going on Monday, but came out more aggressive in their procurement efforts in the afternoon and bid up to move needed numbers.  The industry continues to monitor supplies as demand for U.S. pork on the global market has been strong.  According to the USDA’s Quarterly Hogs and Pigs report, U.S. hog producers continue to increase productivity as there was a record set for average pigs per letter and the September to November pig crop was also record large. Barrows and gilts at the National Daily Direct closed $2.61 higher with a base range of $71 to $80 and a weighted average of $79.56; the Iowa/Minnesota and the Western Corn Belt but had no comparison but weighted averages of $79.60 and $79.56.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Pork values closed lower– down $2.66 at $94.62. Bellies, ribs, and hams were sharply lower.  Picnics, loins, and butts were lower. Estimated hog slaughter was 490,000 head – up 3,000 on the week.