Market News

Cattle futures close lower on profit-taking

At the Chicago Mercantile Exchange, cattle futures closed lower on profit-taking after yesterday’s bounce.  Feeder cattle futures led the way down with additional pressure from the firm move in corn.  The weakness in boxed beef also contributed to the day’s losses.  December live cattle closed $.50 lower at $115.65 and February live cattle closed $.77 lower at $118.37.  January feeder cattle closed $1.45 lower at $145.65 and March feeder cattle closed $1.25 lower at $144.05.

Direct cash cattle trade is quiet with just a few bids.  Southern asking prices have been reported at $119 to $120, while the North remains at a standstill – but there is expectations that asking prices will start around $190.00.  Bids have been reported at $114 to $115 live.  It looks like significant trade volume will be delayed until sometime Thursday or Friday.

Boxed beef closed lower on light to moderate demand and moderate offerings.  Select and choice loin and chuck cuts were steady while round cuts were steady to firm.  Choice rib cuts were also lower.  Choice ended the day $1.58 lower at $202.48 and Select closed $.90 lower at $185.02.  The Choice/Select spread closed at $17.46.

At the Union Livestock Market in Oklahoma, lightweight steer calves were $3.00 to $8.00 lower and heavier weight steer calves were $1.00 to $7.00 higher.  Heifer calves were $1.00 to $8.00 higher.  Receipts were 1,550 head – even with the previous week.  The USDA says demand was good and quality was average through attractive.  Feeder supply included 55 percent steers and 20 percent of the offering over 600 pounds.  Feeder steers, Medium and Large 1’s 550 to 600 pounds were $151.00 to $160.00 and Medium and Large 1’s 600 to 650 pounds were $144.00 to $157.00.  Feeder heifers, Medium and Large 1’s 500 to 550 pounds were $128.00 to $136.00 and Medium and Large 1’s 550 to 600 pounds were $129.00 to $139.00.

Estimated cattle slaughter is 119,000 head even with last week and up 5,000 on the year.

Lean hog futures closed modestly higher on short covering.  Contracts held on to the minimal gains despite the days sharply lower move in wholesale values.  December lean hogs closed $.20 higher at $63.90 and February lean hogs closed $.27 higher at $66.80.

Cash hogs closed lower. The trade continues to watch the availability of market-ready numbers.  Slaughter numbers have started the week strong and as long as the supply holds steady that shouldn’t change.  Hog weights continue to rise over year ago levels. The average weight of barrows and gilts at the Iowa/Southern Minnesota for the week ending 12/9 is 286.1 pounds, down .8 pounds on the week, but up 5.4 pounds on the year.  The heavier weights are increasing production and adding pressure to prices as there are concerns the market supply will outpace demand.

Barrows and gilts at the Iowa/Southern Minnesota closed $.93 lower with a range of $50.00 to $58.00 with a weighted average of $56.73; the Western Corn Belt closed $.95 lower with a range of $50.00 to $58.00 and a weighted average of $56.66; the Eastern Corn Belt had no comparison with a range of $55.50 to $59.20 and a weighted average of $58.15; the National Daily Direct closed $1.08 lower with a range of $50.00 to $59.20 with a weighted average of $57.04.

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

At the Interior Missouri Direct, barrows and gilts are steady at $50.00 to $53.00 with light to moderate supply and demand.  Sows are steady to $2.00 higher at $28.00 to $37.00.

At Illinois, slaughter sow prices are steady at $26.00 to $40.00 with moderate demand for moderate offerings.  Barrows and gilts are steady at $37.00 to $43.00 with moderate demand for moderate offerings.

Pork value closed sharply lower – down $4.61 at $76.51.  The primals were mostly lower led by the nearly $14.00 drop in the belly and the nearly $8.00 drop in the ham.

Estimated hog slaughter is 468,000 head up 9,000 on the week and 27,000 on the year.