Market News

Strong gains for cattle, hog futures

Chicago Mercantile Exchange live and feeder cattle were up sharply on technical buying, while waiting for widespread direct cash business. April live was $1.90 higher at $196.55 and June was up $2.62 at $192.70. April feeders were $3.57 higher at $276.07 and May was up $4.07 at $275.07.

Direct cattle markets were generally quiet. Some light business was reported at $195 to $197 on the live basis in Kansas and Texas, steady to $2 lower than last week. That followed up the very light activity Tuesday in Kansas at $195 live. It looks like widespread direct business will wait until at least Thursday, if not Friday. Asking prices are $198+ on the live basis, nothing yet for the dressed basis, and bids continue to be scarce. This week’s show list looks mixed, larger in Kansas, smaller in Colorado, Nebraska, and Texas.

At the Ozarks Regional Stockyards in Missouri, compared to the previous week, feeder steers and heifers were steady to $4 higher. Steer and heifer calves were unevenly steady from $3 lower to $3 higher. The USDA says demand was moderate, improving during the day, for a moderate supply with a good offering of yearlings. Receipts were down on the week and the year. 55% of the offering were steers and 51% of all feeder cattle weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 800 to 900 pounds brought $254 to $266 and Medium and Large 1 to 2 steers weighing 500 to 600 pounds were reported at $293 to $348. Medium and Large 1 feeder heifers weighing 500 to 600 pounds sold at $285 to $330 and 600-to-700-pound heifers ranged from $257.50 to $290.

Boxed beef closed lower with moderate to heavy movement. Choice was down $1.33 at $313.54 and Select beef was $1.49 lower at $302.53 for a spread of $11.01. The estimated cattle slaughter of 120,000 head was down 2,000 on the week and 3,674 on the year.

Lean hog futures were supported by the higher midday move in pork. Still, the gains might not stick due to questions over sustained domestic and export demand. April was up $2.35 at $84.70 and May was $2.00 higher at $87.47.

Cash hogs were mixed with moderate closing negotiated numbers at the major direct markets. Most buyers were apparently still in need of near-term numbers after a couple of days of light to moderate negotiated activity to start the week. The impact of tariffs on exports is an ongoing wildcard and domestic wholesale business has been volatile, including some very wide swings in the belly primal. The average barrow and gilt weight in the Iowa/Southern Minnesota/South Dakota reporting area during the week ending March 1^st was 289.1 pounds, up 1 on the week and 1.8 on the year.

National direct barrows and gilts closed $1.07 higher with a base price range of $84 to $63 for a weighted average of $90.28, while Iowa/Southern Minnesota was up $.81 at $90.29 and the Western Corn Belt was $.73 higher at $90.17. The Eastern Corn Belt had no recent comparison with a weighted average of $90.59. Butcher hogs in Dorchester, Wisconsin and Garnavillo, Iowa were $2 lower at $60. Illinois direct sows were steady at $62 to $74 with moderate demand for heavy offerings. Barrows and gilts were steady at $51 to $61 on moderate demand and offerings. Boars ranged from $15 to $30.

Pork closed $1.29 lower at $96.48. Ribs were up, while loins, butts, picnics, hams, and bellies were down. The estimated hog slaughter of 409,000 head was down 81,000 on the week and 75,861 on the year. Tuesday’s hog slaughter was revised to 481,000 head, a drop of 6,000 from the initial guess.