Market News

Cattle futures firm ahead of widespread cash business

At the Chicago Mercantile Exchange, cattle futures ended the day firm on optimism ahead of widespread direct cash business.  Firm wholesale values also provided some support.  Feeder cattle were mixed finding some support in the day’s lower move in corn.  February live cattle closed $.07 higher at $124.87 and April live cattle closed $.12 higher at $125.92.  January feeder cattle closed $.07 lower at $146.75 and March feeder cattle closed $.17 higher at $145.07.

It’s been a quiet week for direct cash cattle trade.  There are a few scattered bids on the table in Nebraska at $192 dressed and in Texas at $119 live.  Those bids are still far from the current asking prices of $125 to $126 live and $200-plus dressed.  The distance between the two could push significant trade volume until sometime on Friday. 

At the Springfield Livestock Marketing Center in Missouri, receipts are up on the week and the year.  Compared to last week steers under 650 pounds were steady, steers over 650 pounds were $5 to $10 lower.  Heifers under 500 pounds were steady and heifers over 500 pounds are $3 to $5 lower.  The USDA says demand was moderate and supply was moderate to heavy.  Feeder supply included 40 percent steers and 46 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 603 to 634 pounds brought $143 to $155.50 and feeder steers 714 to 749 pounds brought $130 to $143.  Medium and Large 1 feeder heifers 550 to 598 pounds brought $125 to $131.50 and feeder heifers 720 to 743 pounds brought $124.50 to $130.25. 

Boxed beef closed steady on Choice and higher on Select on moderate to fairly good demand and moderate offerings.  Choice closed $.12 higher at $213.96 and Select closed $1.30 higher at $207.77.   

Estimated cattle slaughter is 120,000 head – down 1,000 on the week and up 1,000 on the year. 

Lean hog futures closed mixed with a moderate trading range.  Wholesale values were supportive, but there is some pressure as the markets continue to struggle with supply and demand concerns.  February lean hogs closed $.30 higher at $64.07 and April lean hogs closed $.30 higher at $67.85. 

Cash hogs closed mixed with fairly light negotiated purchase totals.  Buyers took a little breather from their recent aggressive procurement efforts.  The supply of ready barrows and gilts is ample and supply and demand worries continue to create uncertainty in the market.  The market continues to watch the African Swine Fever situation in China.  A disruption to the global pork supply would eventually help provide some price support to pork markets.  Barrows and gilts at the Iowa/Southern Minnesota closed $.95 lower with a range of $49 to $53 for a weighted average of $51.10; the Western Corn Belt closed $.41 lower with a range of $49 to $53 for a weighted average of $51.56; the Eastern Corn Belt closed $.80 higher with a range of $47 to $51.12 for a weighted average of $50.96; and the National Daily Direct closed $.02 lower with a range of $47 to $53 for a weighted average of $51.14. 

Butcher hogs at the Midwest cash markets are steady at $30.  At Illinois, slaughter sow receipts are down on the week and up on the year.  Prices are $1 to $2 lower at $19 to $32 with light to moderate demand for light to moderate offerings.  Barrow and gilt prices are steady at $30 to $37 with moderate demand for moderate offerings. 

Pork values closed firm – up $.79 at $70.46.  Hams, bellies, butts, and loins were all firm to higher.  Ribs are steady.  Picnics closed weak.  Estimated hog slaughter is 477,000 head – up 1,000 on the week and up 37,000 on the year.