Market News

Cattle futures lower heading into Friday

At the Chicago Mercantile Exchange, live cattle futures were mostly lower and feeders were down with a bearish set of weekly export numbers, watching direct business develop. December live was down $.05 at $147.87 and February was $.12 lower at $151.62. November feeders were $.90 lower at $176.42 and January was down $.22 at $177.85.

There was light to moderate direct cash cattle trade on Thursday in the South. Bids were $144, $1 higher than both last week’s weighted average and Wednesday’s deals. Some asking prices remain firm around $145 in the South, and $233-plus in the North.

At the Mitchell Livestock Auction in South Dakota, compared to last week, there were light numbers and a trend was not applicable.  A higher undertone was noted on steers 800 to 900 pounds.  Steers 1050 to 1100 pounds were $3 lower.  A higher undertone was noted on heifers up to 800 pounds. Heifers 800 to 1,000 pounds sold $2 to $3 higher.  Many loads lots in larger weight cattle.  The USDA says demand was good.  Receipts were down on the week and year.  Feeder supply was 42 percent steers and 96 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 573 to 592 pounds brought $171.50 to $187 and steers 656 to 680 pounds brought $168.50 to $175.  Medium and Large 1 feeder heifers 851 to 892 pounds brought $166.25 to $171.35 and heifers 900 to 938 pounds brought $160 to $163.60.

Boxed beef cutout values closed mixed with moderate to good box movement. Choice is up $.30 at $247.36 and, Select is $2.23 lower at $216.99. The Choice/Select spread is $30.37. Estimated cattle slaughter is 127,000 head, steady on the week, but up 6,000 on the year.

Lean hog futures were higher, supported by solid weekly export sales and the higher midday move in pork. December live was up $1.27 at $77.77 and February was $1.42 higher at $80.30.

Cash hogs closed sharply lower. Processors didn’t have to work hard for bids and weren’t aggressive in their procurement efforts.  Tuesday and Wednesday saw two very large days where processors were busy ahead of Monday’s holiday. Barrows and gilts at the National Daily Direct were $3.59 lower with a base range of $79 to $98 with a weighted average of $89.40; the Iowa/Minnesota was $3.77 lower with a weighted average of $91.33; the Western Corn Belt was $.54 lower at $91.72; Eastern Corn Belt was down $1.71 with a weighted average of $88.94.

Butcher hogs were steady at $62. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings from $58 to $70.  Barrows and gilts were steady with moderate demand for moderate offerings from $58 to $68. Boars ranged from $39 to $41 and $9 to $19.

Pork values closed $2 higher at 101.29.  Loins and butts are sharply lower.  Picnics, ribs, hams and bellies are higher.

Estimated hog slaughter is 489,000, up 13,000 on the week and 8,000 on the year.