Market News

Live cattle mostly lower, feeders down despite direct trade

Chicago Mercantile Exchange live cattle futures were mostly lower and feeders were down sharply on profit taking and fund selling, ignoring direct business and a higher midday move for wholesale beef. February live was up $.45 at $194.05 and April was down $.05 at $196. March feeders were down $2.02 at $264.17 and April was $2.12 lower at $264.40.

Direct cattle trade was light. Sales were at $197 live in the South, $4 to $5 higher than the previous week, and $315 dressed in the North, up $8. There were also some live sales in Iowa and Nebraska at $200. Asking prices are $197+ on the live basis and $315 dressed. Thursday’s trade was light at $195 to $196 live in Kansas and Texas, up $2 to $3 from the previous week, with scattered sales $310 to $315 dressed in Nebraska. The weekly support can be tied to generally tight ready numbers and solid beef demand, despite high prices relative to other proteins. Beef export sales for 2024 delivery were 1,400 tons, up 29% on the week, while sales for 2025 delivery were 11,100 tons.

Boxed beef closed higher with moderate movement. Choice was up $1.76 at $325.24 and Select beef was $2.49 higher at $296.72 for a spread of $28.52. The estimated cattle slaughter of 121,000 head was down 2,000 on the week and 3,381 on the year.

At the Mid Missouri Stockyards cattle auction, compared to the previous test, feeder steers and heifers were mostly $5 to $20 higher. The USDA says the supply of weaned and more attractive feeder cattle was very good and buyer demand was good, with receipts up from that last test, but down on the year. 61% of the feeder offering were steers and 58% of all feeder cattle weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 500 to 600 pounds were reported at $299 to $358.50 and 600-to-700-pound steers brought $286.50 to $316. Medium and Large 1 feeder heifers weighing 500 to 600 pounds ranged from $282.50 to $311 and 600-to-700-pound heifers sold at $260 to $275.50.

For the week in Iowa, hay and straw trade volume was down on the week. Medium squares of supreme alfalfa ranged from $225 to $260 per ton, with premium at $110. Large rounds of good quality grass were reported at $90 per ton, with mixed small squares at $200. Large squares of wheat straw brought $169 per ton with small squares at $200 to $225.

In Missouri, the USDA says there was a slight increase in demand from equine interests and smaller farmers without a lot of storage ahead of a winter storm. Hay movement was slow and prices were unevenly steady for a moderate to heavy supply with light to moderate demand. Asking prices for medium squares of supreme alfalfa were $250 to $300 per ton with asking prices for premium at $200 to $250 and large rounds of good quality at $150 to $200. Asking prices for large rounds of good quality mixed grass were $125 to $200 per ton with fair to good quality at $80 to $125. Asking prices for rounds of corn stalks were $15 to $25 per bale with small squares of wheat straw at $4 to $7.

For South Dakota, trade volume in tons was below the previous test, but up on the year. In eastern areas, large squares of premium to supreme quality alfalfa sold at $250 per ton, with large squares of premium to supreme mixed grass at $175. Statewide, large rounds of premium alfalfa were reported at $120 per ton FOB for dairy usage, with large rounds of good quality grass at $110. Small squares of wheat straw brought $6.

Lean hog futures were pressured by the week’s mostly lower trend in the wholesale market and fund selling. The midday gain in pork did provide some brief support to the February contract, but not enough to allow it to finish in the black. February was down $.37 at $80.77 and April was $.77 lower at $85.77.

Cash hogs were steady to modestly lower with moderate closing negotiated numbers at the major direct markets. It looks like most buyers had the needed near-term numbers in hand, continuing to watch weather forecasts ahead of what was expected to be a big winter storm and monitor wholesale business. It was a mostly down week for the cutout value, but there are some expectations pork can gain some ground against beef due to competitive prices. Pork export sales for 2024 delivery were 7,500 tons, up 6% on the week, and sales for 2025 delivery were 13,500 tons.

National direct barrows and gilts closed $.49 lower with a base price range of $77 to $81 for a weighted average of $79.59, with Iowa/Southern Minnesota down $.43 at $79.92 and the Western Corn Belt $.03 lower at $79.83. Butcher hogs were steady at $55 in Dorchester, Wisconsin, and $60 in Garnavillo, Iowa. Illinois direct sows were steady at $32 to $44 with moderate to good demand for light offerings. Barrows and gilts were steady at $46 to $56 on moderate demand and offerings. Boars ranged from $15 to $30.

The USDA says early weaned pigs were $5 higher and feeder pigs were up $7, with firm demand for light to moderate offerings, and total receipts up on the week, but down on the year. For early weaned pigs, the composite cash range was $51.50 to $93 for a weighted average of $82, and the composite formula range was $53.83 to $85.72 for a weighted average of $78.20, putting the weighted average for all early weaned pigs at $80.48. The composite cash range for feeder pigs was $88 to $103 for a weighted average of $95.33. Weighted averages for both early weaned pigs and feeder pigs were above the previous week and last year.

Pork closed up $.22 at $89.54. Sharply higher moves in butts, ribs, and bellies canceled out declines in loins, picnics, and hams. The estimated hog slaughter of 488,000 head was up 1,000 on the week and 1,132 on the year.