Market News

Cattle futures pressured by heavier weights and lackluster exports

Chicago Mercantile Exchange cattle futures closed lower as the overall tone of the market remains weak.  Reports of heavier weights, less than stellar export sales and limited cash trade aren’t helping.  The drop in wholesale values is adding pressure and the lack of support in the market continues to drive selling pressure.  December live cattle closed $.65 lower at $119.55 and February live cattle closed $.62 lower at $125.12.  November feeder cattle closed $.22 lower at $157.77 and January feeder cattle closed $.35 lower at $153.90.

Trade has been at a near standstill with just a few reported deals in parts of the North.   Asking prices for the remainder of the showlists are around $122 plus in the South and $192 plus in the north.  Bids in Nebraska have been reported at $189.  It’s likely trade is essentially completed for the week.

Boxed beef closed mixed – steady on Choice and sharply lower on Select on light to moderate demand and light offerings.  Choice closed $.11 higher at $210.24 and Select closed $2.78 lower at $187.83.  The Choice/Select spread widened to $22.41.

At the Hub City Livestock Auction in South Dakota, steer calves 500 to 600 pounds were steady, steers 601 to 750 pounds were $5.00 to $8.00 lower.  Heifer calves 450 to 500 pounds and 551 to 600 pounds were steady with instances of $3.00 higher.  Yearling cattle different weight classes were not well compared.  Receipts were 5,967 head up from the previous week and down on the year.  The USDA says there was good to very good demand for the attractive calf offering featuring many loads and packages.  The majority were fully preconditioned.  Feeder supply included 59 percent steers and 68 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 556 to 599 pounds were $162.00 to $180.00 and Medium and Large 1 calves 651 to 689 pounds were $156.00 to $172.75.  Feeder heifers, Medium and Large 1’s 553 to 597 pounds were $148.00 to $158.50 and Medium and Large 1 calves 601 to 647 pounds were $148.50 to $155.00.

Estimated cattle slaughter is 120,000 head – up 7,000 on the week and 3,000 on the year.

Lean hog futures took a beating today.  The Lean Hog Index dropped again and the December contract is at a discount to cash.  Another weak wholesale showing is adding pressure to the market and with the majority of Thanksgiving demand complete for pork purchases – there isn’t a lot there to support a rally.   December lean hogs closed $1.02 lower at $60.10 and February lean hogs closed $.87 lower at $66.57.

Cash hogs ended the day lower.  Packers have leverage and with ample supplies of market-ready numbers slaughter pace isn’t likely to see a significant slowdown leaving prices nowhere to go but lower.

Barrows and gilts at the Iowa/Southern Minnesota closed $.76 lower with a range of $52.00 to $58.25 and an average of $57.57; the Western Corn Belt closed $.84 lower with a range of $52.00 to $58.25 and an average of $57.34 ; the Eastern Corn Belt was not reported due to confidentiality; the National Daily Direct closed $.59 lower with a range of $52.00 to $58.25 and an average of $57.48.

Butcher hogs at the Midwest cash markets are steady at $36.00 to $46.00.

At the Interior Missouri Direct, barrows and gilts are steady at $52.00 with light to moderate supply and demand.

At Illinois, slaughter sow prices are $1.00 lower at $37.00 to $49.00.  The USDA says there is good demand for moderate offerings.  Barrows and gilts are steady at $36.00 to $45.00 with moderate demand for moderate offerings.

Pork closed weak – down $.08 at $80.55.  The primals were mostly lower however the belly saw a more than $2.00 jump to finish the day.

Estimated hog slaughter is 464,000 head up 3,000 on the week and up 21,000 on the year.