Market News

Cattle futures waiting for cash business

At the Chicago Mercantile Exchange, live cattle ended the day firm to higher ahead of widespread direct cash business with additional support from higher wholesale values during the session.  Feeder cattle were mostly higher on the same factors.  October live cattle closed $1.35 higher at $112.35 and December live cattle closed $.42 higher at $113.87.  October feeder cattle closed $.22 higher at $145.22 and November feeder cattle closed $.15 lower at $145.92. 

Direct cash cattle trade activity has been at a standstill through midweek.  The lone bid that has surfaced is in Nebraska at $172 dressed.  Asking prices are around $111 to $112 live in the South and $180 dressed in the North.  Significant trade volume will likely be delayed until sometime Thursday or Friday. 

At the Kingsville Livestock Auction in Missouri, receipts are up on the week.  Compared to last week’s sales, feeder steers sold steady to firm and heifers sold steady to $5 higher.  Demand and quality were uneven, but demand was best for feedlot bound yearlings and moderate to light in spots for calves.  The majority of the run was still yearling cattle that had come off of grass.  Supply was moderate.  Feeder supply included 51 percent steers and 46 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 655 to 688 pounds brought $146.50 to $159 and feeder steers 733 to 746 pounds brought $148 to $157.25.  Medium and Large 1 feeder steers 556 to 596 pounds brought $141.50 to $152 and feeder steers 653 to 696 pounds brought $145 to $149.

Boxed beef closed steady to firm on moderate demand and moderate offerings.  Choice closed $.26 higher at $218.28 and Select closed $.11 lower at $191.37.  The Choice/Select spread closed at $26.91. 

Estimated cattle slaughter is 116,000 head, down 1,000 on the week and down 3,000 on the year. 

Lean hog futures ended the day mixed on spread adjustments.  The market is still hopeful demand for US pork will see a significant increase on the global market, but concerns still linger as supplies remain extremely heavy.  The industry will be interested to see this week’s export sales report. 

December lean hogs closed $1.50 lower at $70.62 and February lean hogs closed $.30 lower at $78.85. 

Cash hogs were mixed with really strong negotiated purchase totals.   Packers have been moving big numbers throughout the week.  The demand potential has been enough to keep prices supported, but if those purchases aren’t realized it could send prices tumbling.  Especially with the heavy supply and slaughter runs that keep getting bigger.  Barrows and gilts at the Iowa/Southern Minnesota closed $.47 higher with a weighted average of $60.35; the Western Corn Belt closed $.38 higher for a weighted average of $60.26; the Eastern Corn Belt closed $1.74 higher for a weighted average of $57.52; and the National Daily Direct closed $.40 lower with a base range of $51 to $62 for a weighted average of $58.82. 

Butcher hog prices at the Midwest cash markets are steady at $40. At Illinois, slaughter sow prices were $1 to $2 higher at $23 to $36 with good demand for moderate offerings.  Barrow and gilt prices were $1 higher at $35 to $40 with good demand for moderate offerings. 

Pork values ended the day weak – down $.34 at $77.72.  Bellies dropped $5.53.  Butts were also lower.  Loins and hams closed firm.  Picnics and ribs higher to sharply higher.  Estimated hog slaughter is 490,000 head, even on the week and up 12,000 on the year.