Market News

Cattle futures supported by on Feed numbers

At the Chicago Mercantile Exchange, cattle futures ended the sharply day higher as the market responded positively to Friday’s Cattle on Feed report.  Sharply higher wholesale values were also supportive of today’s move.  December live cattle closed $1.30 higher at $118.07 and February live cattle closed $1.32 higher at $122.47.  November feeder cattle closed $2.82 higher at $156.92 and January feeder cattle closed $2.97 higher at $151.72.

Direct cash cattle trade is quiet.  The majority of the day’s focus is on the newly distributed showlists.  Ready numbers appear to be larger in Texas, steady in Kansas and Colorado, but lower in Nebraska.  Significant trade volume will likely be delayed until the latter half of the week.

At the Oklahoma National Stockyards, receipts are up on the week and the year.  Compared to last week’s light test feeder steers and heifers were mostly $3 to $5 higher.  Steer and heifer calves had little comparable weight ranges, but traded with a sharply higher undertone and instances of $13 to $19 higher.  The USDA says demand was very good for all classes.  Quality was average to attractive.  Feeder supply included 56 percent steers and 43 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 507 to 547 pounds brought $167 to $182 and feeder steers 676 to 687 pounds brought $155 to $161.50.  Medium and Large 1 feeder heifers 569 to 583 pounds brought $145 to $146 and feeder heifers 655 to 687 pounds to $144.50 to $154.50.

Boxed beef cutout values closed higher to sharply higher on moderate to good demand and light to moderate offerings.  Choice up $1.35 at $209.28 and Select up $3.42 at $197.55.  The Choice/Select spread closed at $11.62.  Estimated cattle slaughter is 118,000 head – up 3,000 on the week and 2,000 on the year.

Lean hog futures closed sharply higher on carry-over strength from the cattle markets and the sharp move higher in wholesale values at midday. The move higher is likely short-lived as slaughter runs are running well above year-ago levels and at heavier weights.  December lean hogs closed $1.57 higher at $53.17 and February lean hogs closed $1.27 higher at $60.30.

Cash hogs closed lower with moderate negotiated purchase numbers.  Supply and demand concerns continue.  We’re running into the seasonal peak for hog runs and the large supply, combined with the rising hog weights adds more pork to a market that struggles with demand uncertainty.

Barrows and gilts at the Iowa/Southern Minnesota closed $1.16 lower with a range of $52 to $58.50 for a weighted average of $57.29; the Western Corn Belt closed $1.14 lower with a range of $51 to $58.50 for a weighted average of $57.17; the Eastern Corn Belt had no comparison but a range of $56.50 to $58.90 for a weighted average of $58.72; the National Daily Direct closed $.59 lower with a range of $51 to $58.90 for a weighted average of $58.09.

Butcher hogs at the Midwest cash markets are steady at $38 and $44.   At Illinois, slaughter sow receipts are up on the week and even on the year.  Prices are $1 higher at $29 to $41 with moderate demand for moderate offerings.  Barrow and gilt prices are steady at $32 to $42 with moderate demand for moderate offerings.

Pork cutout values closed steady – $.03 lower at $78.39.  The primals were mostly steady to higher, with the bellies showing the most strength for the day. Estimated hog slaughter is 475,000 head – up 16,000 on the week and down 6,000 on the year.

 

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