Market News

Cattle futures up on technical buying, midday boxed beef

 

Chicago Mercantile Exchange live cattle futures were higher, supported by follow through technical buying, the higher midday boxed beef, and cash optimism ahead of widespread direct business. Light commercial support was also present. The USDA’s monthly cattle on feed numbers are out Friday and the semi-annual inventory report is due on the 31st. February was $1.17 higher at $124.72 and April was up $.82 at $124.80.

Feeder cattle were up on wholesale business, technical buying, and position squaring ahead of the week’s direct trade. Contracts had additional support from the weak move in corn. January was $.72 higher at $148.62 and March was up $1.15 at $146.97.

Most of the direct cash cattle markets were at a standstill as buyers and sellers continue to look over this week’s offering. A few hundred head did sell in Kansas at $123 on the live basis, but not enough to establish a trend. Asking prices could start out around $126+ live, with bids starting to surface as packer inquiry improves. Widespread business is not expected until the second half of the week. The offering at the Fed Cattle Exchange this week is 494 head.

Boxed beef closed higher on moderate to good demand for light to moderate offerings. Choice was up $1.78 at $206.85 and Select was $.64 higher at $200.16. The estimated cattle slaughter of 111,000 head was down 7,000 on the week and 2,000 on the year.

In the closing report this week for the Oklahoma National Stockyards, feeder steers were mostly steady to $6 higher. Feeder heifers weighing 600 to 750 pounds were $1 to $4 lower, while heifers weighing 800 to 950 pounds were $5 higher. The USDA says demand was moderate to good for the mostly average to attractive offering. Medium and Large 1 feeder steers weighing 600 to 700 pounds ranged from $151 to $166.50 and 700 to 800 pound steers sold at $144 to $156.50. Medium and Large 1 feeder heifers weighing 600 to 700 pounds were reported at $134 to $146 and 800 to 900 pound heifers brought $126 to $135.75.

Lean hog futures were mostly lower on spread trade and the steady to lower cash, along with position squaring relative to the cash index. The monthly cold storage report is scheduled for Wednesday, with December’s slaughter numbers out Thursday. February was $.45 higher at $72.25 and April was $.47 lower at $74.65.

Cash hogs were steady to modestly lower. Parts of the Midwest have mostly dug out after a round of winter weather, which limited movement Monday and may lead to a bigger Saturday kill. Recent kill numbers have been impacted by weather and holidays, but there are questions about the accuracy of live supply projections. Demand is good, but the market is still nervous about potential changes to NAFTA. Mexico and Canada are big buyers of U.S. pork.

Pork closed $.86 higher at $83.03. Bellies dropped $4.34, giving back almost all of Monday’s gain, while loins, butts, picnics, ribs, and hams all gained at least $1.00, including a $4.26 gain in ribs. The estimated hog slaughter of 453,000 head was down 7,000 on the week, but up 25,000 on the year. Monday’s kill was revised to 398,000 head, 7,000 less than the initial projection.

Iowa/Southern Minnesota direct barrows and gilts closed $.10 lower at $62 to $70.50 for a weighted average of $69.53, the Western Cornbelt was down $.17 at $62 to $70.50 with an average of $69.44, and national direct business was $.25 lower at $62 to $70.50 for an average of $69.41. Butcher hogs at the Midwest cash markets were steady at $44 to $48. Missouri direct butchers were steady at $62 to $63 on light to moderate supply and demand. Sows were steady at $28 to $38. Illinois direct sows were $1 to $2 higher at $32 to $44 on very good demand for heavy offerings. Barrows and gilts were steady at $43 to $50 on moderate to good demand for moderate offerings. Boars ranged from $7 to $25.