Market News

Cattle futures drift ahead of cash business

At the Chicago Mercantile Exchange, live cattle futures were mixed with a weak undertone pressured weaker wholesale values and waiting for direction from this week’s cash trade.    Feeder cattle were also lower on long liquidation. February live cattle closed $.45 higher at $125.42 and April live cattle closed $.30 higher at $126.67.  January feeder cattle closed $1.27 lower at $144.85 and March feeder cattle closed $.50 lower at $144.40. 

Direct cash cattle trade was a virtual standstill bids and asking prices have yet to be established.  There were a handful of sales reported Monday in Iowa at $194 to $197 dressed – but it certainly isn’t enough to establish a trend.  Look for significant trade volume to be delayed until sometime Thursday or Friday. 

At Midsession at the Oklahoma National Stockyards receipts are down on the week and up on the year.  Compared to last week, feeder steers are $3 to $5 lower and feeder heifers are steady to $4 higher.   Steer and heifer calves were too lightly tested for an accurate trend; however a mostly lower undertone is noted.  The USDA says demand was moderate to good.  So far, there has been an active bidding on heavier heifers.  Quality was average to attractive for a fair amount of larger lots of long weaned, home raised cattle on offer.  Feeder supply included 68 percent steers and 76 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 653 to 694 pounds brought $144 to $151 and feeder heifers 651 to 692 pounds brought $133 to $138.50. 

Boxed beef cutout values closed weak to lower on light to moderate demand and heavy supply.  Choice closed $.44 lower at $212.02 and Select closed $.81 lower at $205.46.  The Choice/Select spread is $6.56.    Estimated cattle slaughter is 119,000 head – up 1,000 on the week and up 3,000 on the year. 

Lean hog futures closed lower as the market faces continued pressure from heavy supplies and wavering demand.  Contracts are at a premium to cash.  February lean hogs closed $.80 lower at $61.85 and April lean hogs closed $.52 lower at $66.82.   

Cash hog prices closed sharply higher on light to moderate negotiated purchase totals.  Weather is likely going to play a serious role in the markets this week.  Significant amounts of snowfall over the weekend will likely slow slaughter pace and there’s another large winter storm in the forecast for this coming weekend which could add additional challenges.  Depending on the length of the slowdown – we could start to see increased hog weights adding more pork to the market that already has an ample supply and is struggling with demand concerns.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.36 higher with a range of $47 to $53 for a weighted average of $51.99; the Western Corn Belt closed $1.19 higher with a range of $47 to $53 for a weighted average of $51.80; the Eastern Corn Belt was not reported due to confidentiality; National Daily Direct closed $.77 higher with a range of $47 to $53 for a weighted average of $51.66. 

Butcher hogs at the Midwest cash markets are steady at $34.  At Illinois, slaughter sow receipts were even on the week and down on the year.  Prices are $1 lower at $17 to $32 with light to moderate demand for moderate offerings.  Boars under 300 pounds are $10 to $14 and boars over 300 pounds are $6 to $8.  Barrow and gilt prices are steady at $30 to $36 with moderate demand for moderate offerings. 

Pork values closed steady – up $.23 at $71.19.  Bellies, butts, and loins were higher.  Picnics are steady.  Hams are weak and ribs are sharply lower. Estimated hog slaughter is 463,000 head – down 17,000 on the week and up 80,000 on the year.