Market News

Cattle futures steady ahead of widespread cash business

At the Chicago Mercantile Exchange, live cattle futures closed mostly steady to firm as the market waits for direction from the cash trade.  Feeder cattle futures found some support in the days weaker move in corn.  February live cattle closed $.05 lower at $122.85 and April live cattle closed $.10 lower at $124.80.  January feeder cattle closed $.40 higher at $147.95 and March feeder cattle closed $.65 higher at $145.92.

Direct cash cattle trade activity has picked up some today.  There were some scattered bids reported at $115 live and $185 to $187 dressed.  Asking prices are firm at $121 to $122 live and $192-plus dressed.  A handful of deals were completed in Iowa at $187.  The distance between bids and asking prices could push significant trade volume to the end of the week.

At the Bassett Livestock Auction in Nebraska, receipts are up on the week and the year.  Compared to last week feeder steers 500 to 650 pounds were unevenly steady and feeder heifers traded $10 higher.  The USDA says demand was good with several buyers today.  Feeder supply included 84 percent steers and 52 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 503 to 549 pounds brought $175 to $189.50 and feeder steers 655 to 693 pounds $159.50 to $169.75.  Feeder heifers 552 to 595 pounds brought $153 to $164 and feeder heifers 607 to 643 pounds brought $145.50 to $155.

Boxed beef closed mixed – steady on Choice and weak on Select on light to moderate demand and moderate offerings.  Choice closed $.22 higher at $212.47 and Select closed $.57 lower at $201.  The Choice/Select spread is at $11.47.  Estimated cattle slaughter is 122,000 head – up 1,000 on the week and 4,000 on the year.

Lean hog futures closed lower, pressured by outside markets and concerns that the pork sector won’t see as much buying activity from China as was originally anticipated.  February lean hogs closed $.87 lower at $64.82 and April lean hogs closed $1.60 lower at $70.35.

Cash hogs closed firm with moderate negotiated purchase totals.  Packers are taking advantage of large slaughter runs to meet their procurement needs.  However, the ample supply puts them in the driver’s seat to set prices.  They might have had to work little harder to move numbers today, but these massively large slaughter runs are expected to continue throughout the end of the year.  That will likely keep prices tempered unless any major news breaks and the demand picture finds some additional certainty.  Barrows and gilts at the Iowa/Southern Minnesota closed $.35 higher with a range of $43 to $47.50 for a weighted average of $46.53; the Western Corn Belt closed $.03 higher with a range of $42 to $47.50 for a weighted average of $46.17; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct ended the day unchanged with a range of $42 to $47.50 for a weighted average of $46.42.

Butcher hog prices at the Midwest cash markets are steady at $36 in Dorchester, Wisconsin.

Pork values closed higher – up $.73 at $73.17.  Butts and hams closed higher.  Bellies, ribs, and loins were firm.  Picnics closed weak.  Estimated hog slaughter is 476,000 head – up 5,000 on the week and 11,000 on the year.