Market News

Cattle, hog futures higher on wholesale support

At the Chicago Mercantile Exchange, cattle futures closed mostly higher on position squaring ahead of Wednesday’s reports.  Strong wholesale values at midday were also supportive of the move higher.  December live cattle closed $.80 higher at $116.15 and February contracts closed $.27 higher at $120.  January feeder cattle closed $.75 higher at $147.27 and March feeder cattle closed $.35 higher at $144.32.

Direct cash cattle activity was quiet – and typical for a Monday. Showlists this week are lower in Texas, Colorado, and Nebraska, but higher in Kansas.  It’s a big week for reports with Cattle on Feed, Cold Storage, and Livestock slaughter all come out on Wednesday and with the holiday it’s likely we won’t see significant trade volume until the end of the week.

At the Oklahoma National Stockyards receipts are down on the week and the year.  At mid-session, feeder steers are $1 to $4 higher on an early test.  Feeder heifers are $1 higher on a light early test.  Steer and heifer calves are $5 to $7 higher.  The USDA says demand was moderate to good and quality is mostly average.  Feeder supply included 57 percent steers and 49 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 688 pounds are $141 to $151.50 and feeder steers 701 to 745 pounds brought $140 to $150.  Medium and large 1 feeder heifers 503 to 548 pounds brought $140 to $151.50 and feeder heifers 612 to 648 pounds brought $130 to $141.

Boxed beef cutout values closed firm to higher with good demand and moderate offerings.  Choice closed $.48 higher at $213.39 and Select closed $1 higher at $198.57.  The Choice/Select spread closed at $14.82.   Estimated cattle slaughter is 119,000 head – up 8,000 on the week and down 2,000 on the year.

Lean hog futures closed higher on support from sharply higher wholesale values at midday.  Rumors that African Swine Fever continues to disrupt China’s pork supply is adding support, especially in the deferred contracts.  December lean hogs closed $.95 higher a t$61.02 and February lean hogs closed $2.27 higher at $69.02.

Cash hogs close higher with moderate negotiated purchase totals. Packers started the week with strong bids in hopes of moving big numbers with the shortened holiday schedule.  The market continues to struggle with demand uncertainty.  There is some guarded optimism as the President has indicated China is wanting to negotiate a trade deal.  But, there’s still a long way to go before there is some resolution.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.17 higher with a range of $46 to $53 for a weighted average of $52.41; the Western Corn Belt closed $1.21 higher with a range of $46 to $53 for a weighted average of $52.21; the Eastern Corn was not reported due to confidentiality; and the National Daily Direct closed $.17 higher with a range of $46 to $53 for a weighted average of $51.77.

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

Pork cutout values closed firm – $.63 higher at $68.81.  The butts, loins, hams, and ribs all closed higher.  Bellies and picnics were lower. Estimated hog slaughter is 479,000 head – up 38,000 on the week and up 18,000 on the year.