Market News

Live cattle mostly higher, hogs rally despite uneven pork demand

Chicago Mercantile Exchange live cattle futures were mostly modestly higher and feeders were up, generally rebounding from Monday’s drop with help from boxed beef while waiting for this week’s direct trade. April live was down $.15 at $239.10 and June was up $.10 at $235.55. March feeders were $.80 higher at $365.10 and April was up $.85 at $362.20.

Direct cash cattle trade activity remains quiet with bids and asking prices not established. Significant trade volume will likely be delayed until well into the second half of the week.

At the Oklahoma National Stockyards, feeder steers and heifers were steady to $3 lower with 600 to 700 pounds steers $10 to $15 higher. USDA says demand was moderate to good. Feeder supply included 59% steers and 70% of the offering was over 600 pounds. Medium and Large 1 feeder steers 801 to 848 pounds brought $352 to $371. Feeder heifers 701 to 749 pounds sold for $339 to $365.50.

Boxed beef closed higher with Choice up $8.21 at $377.43 and Select up $1.70 at $366.01. The Choice/Select spread is $11.42.

Estimated cattle slaughter was 111,000 head – down 4,000 on the week and down 11,000 on the year.

Lean hog futures were higher, with most months up sharply, seeing another round of technical support, helping contracts shrug off the weak midday move in pork. April was $2.10 higher at $95.80 and May was up $1.85 at $100.50.

Cash hogs were steady with very large closing negotiated numbers at the major direct markets. Buyers have been unexpectedly aggressive to start this last week of February, likely a sign that many were short bought and in need of supplies, which could mean a slowdown in movement by Thursday and Friday. The five-day rolling averages for the major direct markets imply generally firm to higher price movement, even if there were no trends reported. Wholesale pork business was weak Tuesday but continues to hold up fairly well given the amount of pork hitting the market.

Barrows and gilts at the National Daily Direct had no comparisons available at the close. The Iowa/Minnesota, Western Corn Belt and Eastern Corn Belt were not reported due to confidentiality.

Butcher hogs were steady at the Dorchester, Wisconsin market. Barrows and gilts were priced at $69; sows had a range of $63 to $69 and boars were marked at $22. At Illinois, barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55; slaughter sows were steady with moderate demand for light offerings at $56 to $68; boars were marked at $5 to $8 and $8 to $15.

Pork values closed lower – down $.45 at $96.95. Loins, butts, and bellies were higher. Hams, ribs and picnics were lower.

Estimated hog slaughter was 489,000 head – up 6,000 on the week and up nearly 5,000 on the year.