Market News

Cattle futures waiting for this week’s USDA reports

At the Chicago Mercantile Exchange, live cattle ended the day firm ahead of widespread direct cash business, support from wholesale values, and position squaring ahead of this week’s reports (which includes Cold Storage, Livestock Slaughter, and Cattle on Feed).  Feeder cattle were mixed waiting for direct cash business and Friday’s Cattle on Feed numbers.  December live cattle closed $.25 higher at $113.87 and February live cattle closed $.15 higher at $119.22.  November feeder cattle were unchanged at $142.85 and January feeder cattle closed $.35 lower at $139.10. 

Direct cash cattle trade is off to a predictably slow start to the week with business at a standstill.  Showlists this week appear to be slightly smaller in Nebraska and Colorado, lower in Kansas, and Texas.  Bids and asking prices have yet to surface.  Look for significant trade volume to be delayed until Midweek or later. 

At midsession at the Oklahoma National Stockyards, receipts are up on the week and the year.  Compared to last week, feeder steers and heifers are trading steady to $3 higher.  Steer and heifer calves were unevenly steady on a light test.  The USDA says demand was good and the trade was active.  Quality was average to attractive with many lots of uniform, thinner fleshed yearlings on offer.  Feeder supply included 72 percent steers and 71 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 703 to 743 pounds brought $145 to $158.25 and feeder steers 853 to 899 pounds brought $139.25 to $144.  Medium and Large 1 feeder heifers 559 to 599 pounds brought $135 to $143 and feeder heifers 754 to 792 pounds brought $131 to $139.

Boxed beef closed higher to sharply higher on light to moderate demand and offerings.  Choice closed $2.09 higher at $220.13 and Select closed $1.40 higher at $194.44. Estimated cattle slaughter is 118,000 head – up 1,000 on the week and even on the year.  Friday’s cattle slaughter has been revised to 107,000 head. 

Lean hog futures ended the day mostly higher outside of the December contract on demand optimism with support from the day’s higher wholesale values.  December lean hogs closed $.12 lower at $67.82 and February lean hogs closed $.70 higher at $78.17. 

Cash hogs closed steady to sharply higher with strong negotiated purchase totals.  The industry is looking to the demand potential and is finding strength to move higher.  Demand for US pork is expected to continue to increase as much of Asia continues to battle African Swine Fever and that part of the world is in need of pork.  That’s good news for the industry considering the heavy supplies of hogs coming online.  Should there be a disruption to demand it could send pork prices tumbling.  Barrows and gilts at the Iowa/Southern Minnesota closed $2.24 higher for a weighted average of $57.43; the Western Corn Belt closed $1.77 higher for an average of $57.29; the Eastern Corn Belt had no comparison but closed with a weighted average of $56.58; and the National Daily Direct closed $.24 higher with a base range of $51 to $49 for a weighted average of $56.94. 

Butcher hog prices at the Midwest cash markets are steady at $44. At Illinois, slaughter sow prices were firm at $25 to $38 with good demand for moderate offerings.  Barrow and gilt prices were firm at $36 to $41 with good demand for moderate offerings. 

Pork values closed higher – up $1.50 at $78.53.  Hams were sharply higher.  Picnics, bellies, and ribs were all firm.  Butts and loins were steady. Estimated hog slaughter is 488,000 head – down 3,000 on the week and up 13,000 on the year.