Market News

Live cattle mixed ahead of USDA reports

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were lower ahead of the week’s direct cash business and Friday’s On Feed numbers. Feeders had additional pressure from the higher move in corn. December lives closed $.32 higher at $187.20 and February lives closed $.07 higher at $191.07. November feeders closed $.72 lower at $249.72 and January feeders closed $1.90 lower at $250.90.

Direct cash cattle trade activity was pretty quiet for the most part on Wednesday. Bids didn’t surface. Asking prices were around $185-plus live in the South and $295-plus dressed in the North. So far this week, only a handful of deals have been reported in parts of the North with a range of $289 to $293, but that’s certainly not enough business to establish an accurate price trend. Significant trade volume could be delayed until sometime Thursday or Friday.

At the Tri-State Livestock Auction in Nebraska, steers were $5 to $15 higher and heifers were steady to $14 lower. The UDA says demand was good to moderate. Receipts were down on the week and up slightly on the year. Feeder supply included 48% steers and 23% of the offering was over 600 pounds. Medium and Large 1 feeder steers 503 to 537 pounds brought $290 to $313 and feeder steers 560 to 596 pounds brought $273 to $286.50. Medium and Large 1 feeder heifers 455 to 499 pounds brought $288.50 to $304.50 and feeder heifers 738 pounds brought $242.50.

Boxed beef closed lower on light demand for heavy offerings. Choice was $1.28 lower at $303.86 and Select closed $.28 lower at $278.35. The Choice/Select spread is $25.51. Estimated cattle slaughter was 126,000 head – even on the week and down 3,000 on the year.
Lean hog futures were mixed on spread adjustments. The market continues to be concerned about long-term demand certainty. December lean hogs closed $.47 higher at $68.02 and February lean hogs closed $.25 higher at $72.30.

Cash hogs closed higher with a solid negotiated run. Processors had to bid up to move needed numbers on Wednesday. However, supplies of market-ready hogs in the near term are more than ample, which gives packers more leverage. Demand for US pork on the global market has been relatively strong, while domestic demand also appears to be in somewhat of a seasonal slump. However, pork is likely becoming more competitively priced for consumers at the grocery store and that could spur an increase in domestic demand. Hog weights were up 1.6 pounds this week to an average of 283.5 pounds, that’s also up 0.7 pounds from year-ago levels.
Barrows and gilts at the National Daily Direct closed $.46 higher with a base range of $68 to $76 with a weighted average of $73.75; the Iowa/Minnesota closed $.79 higher with a weighted average of $74.26; the Western Corn Belt closed $1.27 higher with a weighted average of $74.01. Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $55 and at $48.

Pork values closed lower – down $1.60 at $87.95. All of the primals were lower, led by a drop in bellies. Estimated hog slaughter was 483,000 head – down 2,000 on the week and down 5,000 on the year.