Market News

Cattle, hog futures higher at midweek

At the Chicago Mercantile Exchange, live cattle closed higher and feeders were mostly higher, watching direct business.  February live cattle closed $.87 higher at $138.55 and March feeder cattle closed $.20 higher at $165.62.

There was another round of light direct cash cattle trade on Wednesday following Tuesday’s light business.  Live deals in the South were at $137, fully steady with the week’s previous business.  There was also a handful of deals in Nebraska at $218 dressed, also fully steady with Tuesday’s trade.  Asking prices for cattle left on showlists are around $138 live in the South and $220 dressed in the North.  Wednesday’s Fed Cattle Exchange was uneventful with an offering of 3,580 head of which none actually sold.  There was a light, dressed trade that took place on Tuesday with deals at mostly $218, many of those are marked for delayed delivery.  There was also some scattered light business in the South at $137, $1 to $1.50 below last week’s business. 

At the Ozarks Regional Stockyards in Missouri, compared to last week steer calves under 550 pounds were steady to $5 higher while heavier weight steers were steady to $5 lower.  Heifer calves were $2 to $4 lower.  Yearlings were not well tested, however, they were met with lower undertones.  The USDA says demand was moderate on a moderate supply.  The market wasn’t active.  Receipts were down on the week and the year.  Feeder supply included 55% steers and 46% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 504 to 540 pounds brought $188 to $201 and feeder steers 601 to 644 pounds brought $164.50 to $173.50.  Medium and Large 1 feeder heifers 558 to 598 pounds brought $142.50 to $149.50 and feeder heifers 603 to 655 pounds brought $145. 

Boxed beef closed higher on good demand for moderate offerings.  Choice closed $2.11 higher at $291.60 and Select closed $2.04 higher at $280.43.  The Choice/Select spread is $11.17. Estimated cattle slaughter is 115,000 head – up 1,000 on the week and down 6,000 on the year. 

Lean hog futures were supported by the higher midday move in pork.  February lean hogs closed $.70 higher at $82.30 and April lean hogs closed $2.07 higher at $91.35. 

Cash hogs closed sharply higher as processors bid up to move their desired numbers.  The industry continues to monitor the availability of market-ready hogs.  Demand has been strong, both domestically and globally for US pork.  However, there are some long-term demand concerns which has kept a lid on prices.  Hog weights this week are down 0.8 of a pound to 291.4, that’s also 0.4 pounds below last year’s average. Barrows and gilts at the National Daily Direct closed $4.09 higher with a base range of $60 to $75.50 and a weighted average of $70.28; the Iowa/Minnesota had a weighted average of $73.81; the Western Corn Belt had a weighted average of $73.38; the Eastern Corn Belt had a weighted average of $62.83.

Butcher hog prices at the Midwest cash markets are steady at $47. At Illinois, slaughter sow prices were $1 to $2 lower with moderate demand for moderate to heavy offerings at $28 to $40.  Barrows and gilts were steady with moderate demand for moderate to heavy offerings at $40 to $46.  Boars ranged from $15 to $20 and $10 to $15. 

Pork values closed sharply higher – up $8.26 at $95.47.    Hams closed more than $30 higher.  Loins and picnics were also sharply higher.  Bellies were higher.  Ribs and butts were lower and sharply lower. Estimated hog slaughter is 457,000 head – up 24,000 on the week and down 43,000 on the year.