Market News

Cattle futures mixed on conflicting signals

At the Chicago Mercantile Exchange, cattle futures closed mixed on conflicting technical and fundamental factors.  Along with the stronger wholesale values, the extremely cold weather is also supportive.  The market is still waiting for some direction from the cash market which has remained slow.  February live cattle closed $.40 lower at $122.95 and April live cattle closed $.27 higher at $124.37.  January feeder cattle closed $.15 lower at $149.37 and March feeder cattle closed $.05 at $146.82.

Direct cash cattle trade remains quiet with bids and asking prices not well defined.  There have been a few asking prices reported $3 to $4 higher than last week’s average around $126 to $127 in the South.  The North has been pretty quiet – but dressed cattle are likely priced in the $200 range.  Don’t look for significant trade volume to develop until sometime on Thursday or even into Friday.

Boxed beef closed sharply higher on moderate demand and light to moderate offerings.  Choice ended the day $3.48 higher at $208.62 and Select closed $2.59 higher at $199.16.  The Choice/Select spread grew to $9.46.

At the Farmers & Ranchers Livestock Auction in Kansas trade was active and demand was good.  Receipts totaled 4,169 down from last year.  Feeder supply included 67 percent steers and 77 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 660 to 675 were $166.50 to $173.50 and Medium and Large 1’s 711 to 748 pounds were $161.50 to $168.50.  Feeder heifers, Medium and Large 1’s 603 to 643 pounds are $153.50 to $159.75 and Medium and Large 1’s 765 to 784 pounds are $145.00 to $151.50.

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

Lean hog futures closed higher on short covering, technical support, and today’s steady to higher move in the cash market.  February lean hogs closed $.32 higher at $71.05 and April lean hogs closed $.57 at $75.42.

Cash hogs closed sharply higher.  Buyers and sellers continue to watch the availability of market-ready numbers.  The weather is a concern in parts of the country as the bitter cold and snowy weather could limit marketings and back up supply.  Weights at the Iowa/Southern Minnesota were down slightly on the week at 285 pounds.  While it is down just one-tenth of a pound from the previous week it is still nearly 3 pounds higher than year-ago levels.

Barrows and gilts at the Iowa/Southern Minnesota ended the day $1.99 higher with a range of $54.50 to $62.50 and a weighted average of $61.08; the Western Corn Belt closed $2.16 higher with a range of $54.50 to $62.50 and a weighted average of $61.05; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.65 higher with a range of $54.50 to $62.50 and an average of $60.54.

Butcher hogs at the Midwest cash markets are steady at $35.00 to $40.00.

At the Interior Missouri Direct, barrows and gilts are steady to $1.00 higher at $47.00 to $52.00 with light to moderate supply and demand.  Sows are steady at $26.00 to $38.00.

At Illinois, slaughter sow prices were weaker at $24.00 to $38.00 with moderate demand for moderate offerings.  Barrows and gilts were $1.00 higher at $37.00 to $43.00 with moderate demand for moderate offerings.

Pork values closed steady with a firm undertone – up $.43 at $78.76.  The primals were mostly higher with the strongest gain in the rib.

Estimated hog slaughter is 462,000 head, down 2,000 on the week and up 26,000 on the year.