Market News

Cattle futures position ahead of on feed numbers

At the Chicago Mercantile Exchange, live cattle closed mostly lower on profit taking and position squaring ahead of tomorrow’s Cattle on Feed report and widespread direct cash trade.  Feeder cattle closed higher on short covering ahead of tomorrow’s report.  October live cattle closed $.27 lower at $111.20 and December live cattle closed $.50 lower at $116.15.  October feeder cattle closed $.62 higher at $153.15 and November feeder cattle closed $.70 higher at $152.77.

Direct cash cattle trade is at a standstill this afternoon.  It looks like buyers and sellers are waiting around until the end of the week before trading cattle.  Asking prices are around $112.00 plus in the South and $175.00 to $178.00 in the North.  Some bids have been reported at $109 to $110 live and $172 to $173 dressed.  Trade could be delayed until after the release of the October Cattle on Feed report.

Boxed beef closed sharply higher on moderate to good demand and moderate to heavy offerings.  A huge jump in Choice – up $2.31 at $199.57 and Select – up $1.67 at $190.76.  The Choice/Select spread increased to $8.81 today.

At the Oklahoma City West auction, receipts were up on the week.  Feeder steers were $5.00 to $7.00 lower and heifers $2.00 to $3.00 lower.  The USDA says demand was good for weaned calves, very light for unweaned fleshy calves and quality was average to attractive with several strings of fleshier type cattle.  Feeder supply included 57 percent steers and 67 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’2 614 to 632 pound calves were $149.00 to $162.00 and Medium and Large 1’s 801 to 845 pounds were $150.00 to $154.00.  Feeder heifers, Medium and Large 1’s 606 to 622 pounds were $151.75 to $153.50 and Medium and Large 1’s 762 to 778 pounds were 140.00 to $143.25.

Estimated cattle slaughter is 117,000 head – down 1,000 on the week and up 6,000 on the year.

At the Chicago Mercantile Exchange, lean hogs closed mostly higher – but down from the day’s highs on a lack of follow-through buying and caution as the market nears recent highs.  December lean hogs closed $.50 higher at $64.25 and February lean hogs closed $.47 higher at $68.47.

Cash hogs closed higher.  Packer margins remain strong and the supply of market-ready hogs is plentiful.  As long neither of those two elements are disrupted, don’t look for a significant slowdown in chain speed, or market momentum anytime soon.

Barrows and gilts at the Iowa/Southern Minnesota were $1.19 higher with a range of $57.50 to $65.50 and an average of $64.19; the Western Corn Belt closed $1.10 higher with a range of $56.00 to $65.50 and an average of $64.07; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.02 higher with a range of $56.00 to $65.50 and an average of $63.42.

Butcher hogs at the Midwest cash markets are steady at $37.00 to $40.00.

At the Interior Missouri Direct, barrows and gilts are steady on the down at $52.00 to $54.00.  The USDA says both the supply and demand are light to moderate.  Sows are steady with sows under 500 pounds $24.00 to $30.00 and sows over 500 pounds $27.00 to $34.00.

At Illinois, slaughter sows are $2.00 higher at $27.00 to $38.00.  The USDA says demand was good for moderate to heavy offerings.  Barrows and gilts are $1.00 higher at $39.00 to $43.00 with good demand for moderate offerings.

Pork closed higher – up $.44 at $74.32.  The primals were mixed including a $2.06 jump in the loin.

Estimated hog slaughter is 465,000 head – up 2,000 on the week and up 21,000 on the year.