Market News

Live cattle mixed waiting for direct business to develop

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were higher ahead of the week’s direct cash business. Feeders had additional support from the lower move in corn and concerns about availability. December live cattle closed $.40 higher at $186.90, and February lives were unchanged at $187.70. January feeder cattle closed $2.62 higher at $258.10, and March feeders closed $2.15 higher at $256.47.

Direct cash cattle trade activity has been sluggish.  A few deals were reported in Iowa. Asking prices were at $189 live in the South, but weren’t established in the North.  Look for more business to develop before the Thursday holiday.

At the Callaway Livestock Center in Missouri, lightweight steer calves 450 to 650 pounds were $7 to $10 higher with spots of $15 higher on steers 550 to 600 pounds.  Steers 650 to 700 pounds sold with a sharply higher undertone, especially on top-quality steers.  Feeder heifers 450 to 600 pounds sold $5 to $10 higher with spots of $12 higher on 550-to-600-pound heifers.  Heifers 600 to 650 pounds sold steady to firm, and heifers over 650 pounds were firm with a higher undertone.  The USDA says demand was very good on steer and heifer calves, with a good quality offering of weaned calves.  All sold on an active market.  Receipts were up on the week and the year.  Feeder supply included 55 percent steers and 60 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 597 pounds brought $300 to $330 and feeder steers 650 to 689 pounds brought $268 to $284.  Medium and Large 1 feeder heifers 561 to 593 pounds brought $266 to $282 and feeder heifer 705 to 736 pounds brought $252.50 to $260.

Boxed beef closed higher on good demand for solid offerings.  Choice was $1.86 higher at $311.57 and Select closed $1.75 higher at $275.49.  The Choice/Select spread is $36.08. Estimated cattle slaughter was 126,000 head – even on the week and about even on the year.

Lean hog futures ended the day mostly higher on spread trade and demand optimism.  December lean hogs closed $1.12 higher at $83.10 and February lean hogs closed $2.35 higher at $88.27. 

Cash hogs had no comparison with a solid negotiated run.  Processors were more aggressive in their procurement efforts on Tuesday, likely an attempt to get business wrapped up sooner rather than later in the holiday-shortened week.  Demand for U.S. pork on the global market has been strong, which has been helping provide some price support.  But domestic demand hasn’t been great, which creates added uncertainty in the markets. Barrows and gilts at the National Daily Direct had no comparison but a base range of $77 to $90.50 and a weighted average of $87.86; the Iowa/Minnesota had a weighted average of $87.80; the Western Corn Belt had a weighted average of $87.82.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $53. At Illinois, slaughter sows were steady with moderate demand for heavy offerings at $44 to $56.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed lower – down $2.18 at $91.15. Ribs and loins were sharply lower.  Butts, bellies, and hams were lower.  Picnics were higher. Estimated hog slaughter was 489,000 head – even on the week and up about 7,000 on the year.