Market News

Cattle futures waiting for cash trade

At the Chicago Mercantile Exchange, cattle futures traded in a narrow range ahead of widespread direct cash business, lack of support in wholesale values, and ahead of the reports coming out on Friday which will give the industry the first real look at supply and demand numbers since the government shutdown.  Feeder cattle found some support in the days weaker move in corn.   February live cattle closed $.10 lower at $126.30 and April live cattle closed $.32 lower at $126.82.  March feeder cattle closed $.07 higher at $143.25 and April feeder cattle closed $.02 higher at $144.87.

Direct cash cattle trade didn’t improve much throughout the day.  There were a handful of deals reported in Iowa at $198 and $199 dressed and in Nebraska at $198.  Bids are at $121 live and $196 dressed.  Asking prices are holding firm at $126 to $127 live and $202 to $205 dressed.  Deals at Wednesday’s Fed Cattle Exchange were marked at $124 and that could set the mark for business this week.  But, it looks like significant trade volume will be delayed until sometime on Friday. 

At the Bloomfield, Iowa market, receipts were up from the most recent sale and down on the year.  Compared to the sale two weeks ago, feeder steers were mostly steady except 550 to 650-pound weight class, which were $2 to $5 higher and feeder heifers under 550 pounds were $2 to $3 higher.  The USDA says the trade was active and demand was good.   Medium and Large 1 feeder steers 607 to 639 pounds brought $159.50 to $167 and feeder steers 700 to 722 pounds brought $148.75 to $155.25.  Medium and Large 1 feeder heifers 605 to 646 pounds brought $140.50 to $150. 

Boxed beef closed lower on light to moderate demand and offerings.  Choice closed $.86 lower at $216.71 and Select closed $.84 lower at $211.54.  The Choice/Select spread closed at $5.18. 

Estimated cattle slaughter is 117,000 head – up 3,000 on the week and even on the year. 

Lean hog futures tumbled as the market continues to face pressure from the sluggish cash trade and lack of support from wholesale values.  Demand concerns continue to creep into the market dragging prices lower.  February lean hogs closed $.65 lower at $55.27 and April lean hogs closed $1.30 lower at $59.60. 

Cash hogs closed lower with light to moderate negotiated purchase totals.  Weather was certainly a factor in many areas slowing down the movement of hogs.  The supply of ready barrows and gilts is ample.  And with increasing hog weights and large slaughter runs there is more pork entering a market that continues to struggle with demand certainty.  China remains the wild card and buyers and sellers continue to watch how the trade and African Swine Fever situations play out. Barrows and gilts at the Iowa/Southern Minnesota closed $.84 lower with a range of $45 to $49 for a weighted average of $48.63; the Western Corn Belt closed $.30 lower with a range of $45 to $50.25 for a weighted average of $49.13; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.23 lower with a range of $45 to $50.25 for a weighted average of $49.52. 

Butcher hogs at the Midwest cash markets are $2 higher at $38.

Pork values closed weak – down $.44 at $65.17.  Bellies, butts, and picnics closed lower to sharply lower.  Hams were steady.  Loins and ribs were sharply higher.  Estimated hog slaughter is 462,000 head – up 42,000 on the week and 3,000 on the year.  Wednesday’s hog slaughter was revised to 473,000 head.