Market News

Mixed livestock markets as cattle fall and hogs face pressure

Chicago Mercantile Exchange live and feeder cattle futures ended the session lower, with boxed beef down at midday, waiting for direct business and Friday’s USDA Cattle on Feed report. February live cattle were down $1.15 at $229.55 and April was $1.15 lower at $229.12. January feeders were $1.80 lower at $341.52 and March was down $1.27 at $336.32.

Direct cash cattle trade activity remains quiet with still only a few asking prices noted in the South at $233-plus. Asking prices have not been established in the North, although private sources have indicated offers to call in at $355 in eastern Nebraska. Bids remain elusive, and business is expected to develop Thursday or later.

At the Imperial Auction Market in Nebraska, a higher undertone was reported throughout this week’s sale on feeder cattle. USDA says there was a nice run on bred heifers that were on-hand. Demand was good on all offerings. Feeder supply included 15% steers and 94% of the offering was over 600 pounds. Medium and Large 1 feeder steers over 1000 pounds brought $307. Medium and Large 1 feeder heifers 876 pounds sold for $320.50.

Boxed beef closed lower with Choice down $2.79 at $356.09 and Select down $2.67 at $346.43. The Choice/Select spread was $9.66.

Estimated cattle slaughter was 118,000 head – down 5,000 on the week and down approximately 4,500 on the year.

Lean hog futures were pressured by profit taking and the week’s trend in the wholesale pork market. February was $1.77 lower at $83.00 and April was down $1.75 at $87.95.

Cash hog business was mixed, with light to moderate closed negotiated numbers at the major direct markets. That mixed trend and relatively quiet movement has come during what’s usually a slower time of the year. Wholesale demand has been in a downtrend over the past few days, at least partially because of the available amount of pork, with the week’s slaughter nearly steady when compared to last year and average weights heavier than a year ago. The USDA’s quarterly inventory numbers are out next week.

Barrows and gilts at the National Daily Direct closed $.15 higher with a base range of $64 to $71. The Iowa/Minnesota and Western Corn Belt markets each were trending lower with weighted averages of $68.91. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs were steady at the Midwest cash market in Dorchester, Wisconsin. Barrows and gilts were steady at $52; sows steady at $42 to $48; boars priced at $16. At Illinois, barrows and gilts were steady with moderate demand for moderate offerings at $40 to $48; sows were steady with moderate demand for heavy offerings at $35 to $47; boars had a range of $12 to $22.

Pork values closed fractionally lower – down $.02 at $98.54. Butts and picnics were higher. Loins, ribs, hams, and bellies were lower.

Estimated hog slaughter was 494,000 head – up 4,000 on the week and up more than 7,000 on the year.