Market News

Cattle futures lower ahead of cash business

At the Chicago Mercantile Exchange, cattle futures closed lower ahead of widespread direct cash business and pressure from wholesale values.  December live cattle closed $.77 lower at $114.60 and February live cattle closed $.15 lower at $118.60.  January feeder cattle were unchanged and March feeder cattle were $.32 lower at $143.80.

Direct cash cattle trade has been fairly quiet.  There are just a few scattered bids on the table at $109 live and $175 to $176 dressed.  Asking prices have been few and far between, but we expect them to pick up during the day on Thursday.  While asking prices may begin to take better shape, don’t look for significant trade volume to happen until later in the day on Thursday or Friday.

At the Ozarks Regional Stockyards in Missouri, receipts are down on the week and the year.  Compared to the last sale, steer and heifer calves under 400 pounds were steady to $2 higher, steer and heifer calves 400 to 600 pounds were steady to $5 lower.  Steer and heifer calves over 600 pounds were $3 to $6 lower.  The USDA says demand was moderate to good on moderate supply.  Feeder supply included 49 percent steers and 36 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 600 pounds brought $150 to $166 and feeder steers 600 to 700 pounds brought $135 to $156.  Medium and Large 1 feeder heifers 500 to 600 pound brought $130 to $138 and feeder heifers 600 to 700 pounds brought $128 to $132.

Boxed beef cutout values closed lower on light demand for moderate offerings.  Choice closed $.92 lower at $213.16 and Select closed $1.80 lower at $197.18.  The Choice/Select spread is $15.98. Estimated cattle slaughter is 118,000 head – down 1,000 on the week and 2,000 on the year.

Lean hog futures closed mixed in light trade volume.  Contracts were pressured by the lower wholesale values.  However, concerns over the spread and containment of African Swine Fever in China continue to provide some price support.   December lean hogs closed $.30 lower at $57 and February lean hogs closed $.17 higher at $62.35.

Cash hogs closed mixed with moderate negotiated purchase totals.  Ample supplies of ready barrows and gilts is putting packers in the driver’s seat when it comes to setting prices.  However, they did have to work a little harder to move numbers this morning.  There is some renewed hope that the US pork sector could see a boost in demand from the outbreak of African Swine Fever in China.  But, the industry continues to proceed with cautious optimism.  Barrows and gilts at the Iowa/Southern Minnesota closed $.64 higher with a range of $47 to $52 for a weighted average of $50.78; the Western Corn Belt closed $.54 higher with a range of $47 to $52 for a weighted average of $50.70; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.18 lower with a range of $46 to $52.44 for a weighted average of $51.37.

Butcher hogs at the Midwest cash markets are steady at $36 in Dorchester, Wisconsin and $1 lower at $33 in Zumbrota, Minnesota. At Illinois, slaughter sow receipts are up on the week and the year.  Prices are steady at $30 to $44 with moderate demand and moderate offerings.  Barrow and gilt prices are $1 lower at $28 to $37 with moderate demand for moderate offerings.

Pork cutout values closed $1.67 lower at $69.02.  The picnics, loins, ribs, bellies, and hams were all lower.  Butts were steady. Estimated hog slaughter is 478,000 head – up 6,000 on the week and 13,000 on the year.