Market News

Cattle futures lower waiting for cash trade

At the Chicago Mercantile Exchange, cattle futures ended the day lower.  There is serious concern about long-term beef demand.  And live cattle futures were pressured by the lack of direction from the cash trade.  Contracts are at a premium to cash.  February live cattle closed $1.40 lower at $125.12 and April live cattle closed $1.30 lower at $126.07.  March feeder cattle closed $1.32 lower at $141.50 and April feeder cattle closed $1.45 lower at $142.95. 

Direct cash cattle trade remains relatively quiet.  Bids and asking prices are scarce.  There were some scattered deals reported in Kansas at $122 live, Nebraska at $123 live, and in Iowa at $196 dressed.  Look for packer inquiry to continue to improve as the week progresses.  Showlists are higher across most feeding areas with the exception of Kansas, which has a somewhat smaller offering. Significant trade volume will likely be delayed until later in the week.  Wednesday’s Fed Cattle Exchange has an offering of 4,139 head. 

At the close, at the Joplin Regional Stockyards in Missouri, receipts are down on the week and the year.  Compared to last week steers were unevenly steady, heifers under 559 pounds were steady to $3 higher and heifers over 550 pounds were steady.  The USDA says demand was moderate to good and supply was light.  Feeder supply included 46 percent steers and 34 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 553 to 583 pounds brought $152 to $168 and feeder steers 653 to 691 pounds brought $138 to $143. 

At the Manchester Livestock Auction in Iowa, beef steers and heifers are trending $2.50 higher, while Holstein steers were steady.  Feeder steers brought $126 to $129.25 and feeder heifers brought $126 to $128.75.  Holstein steers brought $87 to $95. 

Boxed beef closed higher on moderate to fairly good demand and light offerings.  Choice closed $1.08 higher at $216.34 and Select closed $.86 higher at $211.72.  Estimated cattle slaughter is 118,000 head – down 2,000 on the week and up 8,000 on the year. 

Lean hog futures closed mostly higher in a narrow trading range. Stronger wholesale values during the session provided some support.  But, the market is still has concerns about the supply and demand picture. Spread adjustments were also a feature.  February lean hogs closed $.25 higher at $61.47 and April lean hogs closed $.17 lower at $66.10. 

Cash hogs closed mixed with light to moderate negotiated purchase totals.  Look for slaughter runs to push higher this week.  Some less than ideal winter weather has moved through much of the country – which could but some constraints on available ready numbers.  The market continues to watch processing margins, hog weights, the African Swine Fever situation in China, and the supply and demand picture. Barrows and gilts at the Iowa/Southern Minnesota closed $.09 higher with a range of $50 to $53.50 for a weighted average of $52.94; the Western Corn Belt closed $.14 lower with a range of $46 to $53.50 for a weighted average of $52.38; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.15 lower with a range of $46 to $53.50 for a weighted average of $52.20. 

Butcher hogs at the Midwest cash markets are steady in Dorchester, Wisconsin at $34.  At Illinois, slaughter sow receipts are down on the week and up on the year.  Prices are $1 lower at $16 to $30 with light to moderate demand for moderate offerings.  Barrow and gilt prices are steady at $30 to $36 with moderate demand for moderate offerings.  Boars under 300 pounds are $10 to $14 and boars over 300 pounds are $6 to $8.

Pork values closed $1.20 lower at $69.63.  Bellies finished the day $9.45 lower.  The rest of the primals all closed steady to firm.  Estimated hog slaughter is 475,000 – down 5,000 on the week and up 22,000 on the year.