Market News

Cattle futures mostly lower ahead of Wednesday’s reports

At the Chicago Mercantile Exchange, cattle futures closed mixed in light trade volume on position squaring ahead Wednesday’s reports and widespread direct cash business. December live cattle closed $.45 lower at $115.70 and February live cattle closed $.27 at $119.72.  January feeder cattle closed $.40 lower at $146.87 and March feeder cattle closed $.17 lower at $144.15.

Direct cash cattle activity is at a standstill.  We’ll have Cold Storage, Livestock Slaughter, and Cattle on Feed reports coming out which could start a flurry of trade activity late in the day.  Tomorrow’s Fed Cattle Exchange has an offering of 459 head.  Asking prices are expected to surface around $116 to $117 live and $178-plus dressed.

At the Tri-State Livestock Auction in Nebraska, receipts are up on the week and the year.  Compared to last week, steers under 600 pounds were steady to $7 lower, steers over 600 pounds were $5 higher on comparable weights.  Heifers were steady to $5 lower.  Feeder supply included 55 percent steers and 53 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 605 to 629 pounds brought $148 to $160 and feeder steers 700 to 709 pounds brought $148 to $158.  Medium and Large 1 feeder heifers 550 to 598 pounds brought $130 to $143.75 and feeder heifers 872 pounds brought $149.85.

Boxed beef cutout values closed steady to firm on moderate demand and heavy offerings.  Choice closed $.70 higher at $214.09 and Select closed $.14 lower at $198.42.  The Choice/Select spread closed at $15.66.  Estimated cattle slaughter is 119,000 head – even on the week and down 3,000 on the year.

Lean hog futures closed sharply lower on pressure from the sharply lower wholesale values and pressure from the cash trade.  December lean hogs closed $2.05 lower at $58.97 and February lean hogs closed $1.90 lower at $67.12.

Cash hogs closed lower with light negotiated purchases.  The market continues to struggle with demand uncertainty.  There is A LOT of pork entering a market where resolutions to trade rifts with some of the largest customers of US pork don’t seem to be anywhere in sight.  The large supplies are putting packers in the driver’s seat when it comes to setting prices.  Barrows and gilts at the Iowa/Southern Minnesota closed $.94 lower with a range of $48 to $52.50 for a weighted average of $51.44; the Western Corn Belt closed $.93 lower with a range of $48 to $52.50 for a weighted average of $51.41; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.51 lower with a range of $46 to $52.50 for a weighted average of $51.27.

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

The bottom dropped out of pork values today as they closed $3.09 lower at $65.72.  Bellies dropped $11.08.  Loins and picnics were sharply lower.  Ribs and butts were lower.  Hams were firm.  Estimated hog slaughter is 479,000 head – up 1,000 on the week and 17,000 on the year.