Market News

Cattle futures higher ahead of USDA reports

At the Chicago Mercantile Exchange, live cattle were higher on this week’s anticipated higher cash trade, stronger wholesale values, and position squaring ahead of the Cattle on Feed report which comes out on Friday.  Feeder cattle were higher on the same factors with additional support from the day’s weaker corn trade.  December live cattle closed $1.55 higher at $115.25 and February live cattle closed $1.32 higher at $120.42.  November feeder cattle closed $1.25 higher at $144.75 and January feeder cattle closed $1.40 higher at $141.20. 

Direct cash cattle trade is underway.  There are a few scattered live deals have been reported in Eastern Nebraska at $109, that’s about $1 lower than last week’s weighted averages and in Kansas and Texas, also at $109, but $1 higher than last week’s weighted averages.  Bids in the rest of cattle country are at $108 live and $174 dressed with asking prices holding firm at $110+ live in the South and $178 dressed in the North.  Significant trade volume should develop over the balance of the week. 

At the Kingsville Livestock Auction in Missouri, receipts were up on the week.  Compared to last week’s sale steers and heifers sold mostly steady with a few spots $5 lower than last week’s highs.  The USDA says demand was good to very good for the groups and loads of high-quality yearlings offered and moderate for calves with a few extra buyers this week.  The supply was moderate.  Feeder supply included 46 percent steers and 68 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 661 to 695 pounds brought $145 to $155.50 and feeder steers 800 pounds brought $150.  Medium and Large 1 feeder heifers 550 to 590 pounds brought $135 to $147.25 and feeder heifers 647 to 699 pounds brought $142 to $147.75. 

Boxed beef closed higher to sharply higher on light to moderate demand offerings.  Choice closed $2.35 higher at $223.28 and Select closed $.86 higher at $198.94.  The Choice/Select spread closed at $24.34. Estimated cattle slaughter is 118,000 head – up 2,000 on the week and down 1,000 on the year. 

Outside of the nearby contract, lean hog futures closed lower on continued selling ahead of Thursday’s livestock slaughter and export sales report, supply and demand concerns, and weakness in cash hog prices and wholesale values.  December lean hogs closed $.32 higher at $65.82 and February lean hogs closed $1.17 lower at $75.10. 

Cash hogs closed weak with solid negotiated purchase totals.  The industry remains optimistic the demand picture for US pork will improve significantly as parts of the world continue to struggle with African Swine Fever and their herds have been declining.  However, until that demand potential is realized, cash trade has been reluctant to move higher.  Especially as there have been record amounts of pork coming online.  Hog weights this week are at 285.4 pounds, that’s up 1.8 pounds on the week and up 2.5 pounds on the year. 

Barrows and gilts at the Iowa/Southern Minnesota closed $.68 lower for a weighted average of $55.17; the Western Corn Belt closed $.79 lower for a weighted average of $55; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.61 lower with a base range of $51 to $57 for a weighted average of $55.24. 

Butcher hog prices at the Midwest cash markets are steady to $2 lower at $40 to $44.  At Illinois, slaughter sow prices were $1 to $2 higher at $28 to $42 with very good demand for moderate to heavy offerings.  Barrow and gilt prices were steady at $36 to $41 with moderate demand for moderate offerings. 

Pork values closed lower – down $1.06 at $75.04.  Bellies were off $4.52 today. Loins were also lower.  Hams and butts were weak.  Picnics were steady while ribs were sharply higher.  Estimated hog slaughter is 491,000 head – up 1,000 on the week and up 14,000 on the year.