Market News

Cattle futures lower ahead of Cattle On Feed numbers

At the Chicago Mercantile Exchange, live cattle ended the day lower on follow-through selling, the steady start to direct cash business, and waiting for Friday’s Cattle on Feed report.  Feeder cattle were mostly lower on the same factors.  February live cattle closed $.20 lower at $126.17 and April live cattle closed $.45 lower at $126.77.  January feeder cattle closed $1.15 lower at $143.92 and March feeders closed $1.62 lower at $143.05. 

A light to moderate direct cash cattle trade developed on Thursday.  Live deals were at mostly $124 in the South, fully steady with last week’s averages.  There were a few scattered deals reported in the North at $198 dressed, but not near enough to establish a trend.  Asking prices will likely be restated around $126 live and $202 dressed. 

At the Winter Livestock Auction in Dodge City, Kansas, compared to last week feeder steers 650 to 800 pounds were mostly $2 to $3 lower, 800 to 950 pounds had a higher undertone noted on a limited test.  Feeder heifers were mostly $1 to $2 higher.  The USDA says demand was good to very good and quality was average to attractive.  Receipts of 3,100 head were down on the week and up on the year.  Feeder supply included 47 percent steers and 57 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 598 pounds brought $157 to $169 and feeder steers 718 to 748 pounds brought $142.50 to $146.50.  Medium and Large 1 feeder heifers 600 to 627 pounds brought $140 to $151.50 and feeder heifers 714 to 747 pounds brought $137.50 to $139.50. 

Boxed beef closed mixed – firm on Choice and lower on Select on light to moderate demand and offerings.  Choice closed $.45 higher at $214.96 and Select closed $1.45 lower at $212.02.  The Choice/Select spread closed at $2.94.  Estimated cattle slaughter is 123,000 head – up 1,000 on the week and up 7,000 on the year. 

Lean hog futures ended the day higher on demand optimism and the recent push higher in wholesale values.  February lean hogs closed $.20 higher at $67.55 and April lean hogs closed $.70 higher at $74.52. 

Cash hogs closed steady to firm with strong negotiated purchases.   The supply and demand story continues to drive the market.  China is expected to ramp up purchases of US agricultural goods, including pork.  But those remain to be seen and until they are – the hog market will proceed with cautious optimism, especially as pork production is expected to grow another 4 percent this year.  Barrows and gilts at the National Daily Direct closed $.16 higher with a base range of $47 to $53 for a weighted average of $51.90; the Iowa/Southern Minnesota closed $.18 lower for a weighted average of $51.97; the Western Corn Belt closed $.02 lower for a weighted average of $51.96; the Eastern Corn Belt closed $.67 higher for a weighted average of $51.87. 

Butcher hogs at the Midwest cash markets are $2 higher at $38.  At Illinois, slaughter sow prices are firm with moderate demand for moderate to heavy offerings at $12 to $20.  Barrow and gilt prices were firm with moderate demand for moderate offerings at $28 to $36. 

Pork values closed firm – up $.55 at $78.74.  Bellies, hams, ribs, and picnics were all higher.  Loins and butts were weak to lower.  Estimated hog slaughter is 498,000 head – even on the week and up 32,000 on the year.  Tuesday’s kill has been revised to 493,000 head.