Market News

Cattle futures waiting for On Feed numbers

At the Chicago Mercantile Exchange, live cattle ended the day mixed on position squaring ahead of Friday’s Cattle on Feed report.  Feeder cattle were mostly lower on technical selling.  December live cattle closed $.52 higher at $119.30 and February live cattle closed $.42 higher at $125.47.  November feeder cattle were unchanged at $146.60 and January feeder cattle closed $.05 higher at $144.07. 

A solid day for direct cash cattle trade and it didn’t even need to wait for Friday’s Cattle on Feed report.  A light to moderate live trade developed in the South at mostly $116, $1 higher than last week’s weighted averages.  Dressed deals in the North were at mostly $184, $2 higher than last week’s weighted average basis.  Asking prices remain firm for cattle left on showlists at $117 to $118 live in the South and $188 dressed in the North. 

At the Kingsville Livestock Auction, compared to last week steer calves under 600 pounds were $3 to $5 lower and steers over 600 pounds were steady to firm.  Heifers were mostly $5 lower.  The USDA says demand was moderate for calves and good for yearlings and supply was moderate to heavy with several smaller packages of cattle and unweaned calves.  Receipts of 2,546 were up on the week.  Feeder supply included 57 percent steers and 49 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 710 to 744 pounds brought $150.50 to $153 and feeder steers 903 to 913 brought $137.50 to $148.75.  Medium and Large 1 feeder heifers 586 to 594 pounds brought $127.25 to $129 and feeder heifers 823 to 832 pounds brought $125.25 to $130. 

Boxed beef closed weak to lower on light to moderate demand and offerings.  Choice closed $.80 lower at $238.21 and Select closed $.70 lower at $214.77.  The Choice/Select spread is $23.44.  Estimated cattle slaughter is 117,000 head – down 1,000 on the week and down 4,000 on the year. 

Lean hog futures ended the day lower on lack of support from the cash trade and contracts premium to cash. Traders are also waiting to see what happens with this month’s Livestock Slaughter and Cold Storage reports from the USDA, which come out this week. December lean hogs closed $1.70 lower at $60.45 and February contracts closed $2.85 lower at $66.77. 

Cash hogs closed steady with solid negotiated purchase numbers.  The market continues to tread water.  Holding onto hope that demand for US pork will eventually see a significant boost on the global market.  At the same time, hog inventory continues to grow.  Until the pork industry starts to see significantly more pork moving onto the global market it will be very difficult for prices to get out of their current rut. Barrows and gilts at the Iowa/Southern Minnesota closed $.16 higher for a weighted average of $42.34; the Western Corn Belt closed $.20 higher for a weighted average of $42.38; the Eastern Corn Belt had no comparison but a weighted average of $42.38; and the National Daily Direct closed $.06 higher with a base range of $40 to $42.39 for a weighted average of $42.63. 

Butcher hogs at the Midwest cash markets are steady at $36.  At Illinois, slaughter sow prices were $1 lower with moderate demand for heavy offerings at $25 to $36.  Barrow and gilt prices were steady with moderate demand for moderate offerings at $25 to $30. 

Pork values closed higher – up $1.91 at $86.58.  Hams gained more than $10 again today.  Loins were higher.  Butts were weak.  Picnics, ribs, and bellies were all lower.  Estimated hog slaughter is 493,000 head – up 1,000 on the week and up 17,000 on the year.