Market News

Strong gains for cattle futures at midweek

Chicago Mercantile Exchange live and feeder cattle futures were sharply higher on technical buying, shrugging off the bearish cash and wholesale business during the session. April live was up $2.65 at $201.30 and June was $2.67 higher at $195.90. March feeders were $2.47 higher at $270.72 and April was up $2.85 at $270.47.

Direct cattle business did develop on a limited scale. Light trade was reported in Iowa and Nebraska at mostly $328 on the dressed basis, down $1 from last week’s weighted average, and at $208 live in Nebraska. Light activity was reported in Kansas, mostly at $205 live, $3 lower. Asking prices were $208 live and $329+ dressed, with bids at $204 live in Texas. Ready numbers continue to be tight and this week’s show list was mixed, at least somewhat larger in Colorado, Kansas, and Nebraska, and smaller in Texas.

Boxed beef dropped with moderate movement, Choice was down $5.39 at $325.34 and Select beef was $3.08 lower at $314.33 for a spread of $11.01. The estimated cattle slaughter of 121,000 head was down 3,000 on the week and 4,732 on the year.

At the Bassett Livestock Auction feeder cattle sale in Nebraska, compared to the previous week, steers and heifers were unevenly steady. The USDA says demand was good with active bidding from the internet, with receipts down on the week and the year. 51% of the offering were heifers and 60% of all feeder cattle weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 500 to 550 pounds were reported at $382 to $405 and 600-to-700-pound steers sold at $311.50 to $369.50. Medium and Large 1 feeder heifers weighing 500 to 600 pounds ranged from $312 to $362 and 600 to 700-pound heifers brought $285.50 to $320.50.

Lean hog futures were sharply higher on technical buying and the strength in cattle. The delayed tariffs on Mexico and Canada and the lack of U.S. meats in the initial round of retaliatory measures by China are also seen as at least short-term positives for livestock futures. April was up $1.80 at $91.55 and May was $1.97 higher at $95.72.

Cash hogs were steady to higher with moderate closing negotiated numbers at the major direct markets. Buyers in some areas did have to bid up to move the needed near-term numbers, while still staying wary of the inconsistencies in domestic demand. Export demand has been solid, but that could be impacted by tariffs. The USDA’s weekly U.S. export numbers are out Thursday morning. The average barrow and gilt weight in the Iowa/Southern Minnesota/South Dakota reporting area for the week ending February 1^st was 290.7 pounds, down 0.1 on both the week and the year.

National direct barrows and gilts closed $1.31 higher with a base price range of $78 to $88 for a weighted average of $86.71. The major regional direct markets had no recent comparison. Iowa/Southern Minnesota did average $87.20, with the Western Corn Belt at $86.91 and the Eastern Corn Belt at $83.59. Butcher hogs in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $60 and Red Oak, Iowa was steady at $52. Illinois direct sows were $2 higher at $49 to $61 with moderate demand for moderate offerings. Barrows and gilts were steady at $48 to $58 on moderate demand and offerings. Boars ranged from $15 to $30.

Pork closed $.93 lower at $93.83. Loins, butts, and ribs were sharply lower, canceling out the firm to modestly higher moves in picnics, hams, and bellies. The estimated hog slaughter of 489,000 head was up 6,000 on the week and 803 on the year.