Market News

Cattle futures pressured by lower boxed beef

At the Chicago Mercantile Exchange, live and feeder cattle were pressured by the recent trend in beef.  February live cattle closed $2.20 lower at $153.62 and April live cattle closed $1.95 lower at $157.62.  January feeders closed $1.97 at $181.80 and March feeders closed $2.22 lower at $184.15. 

It was a quiet Tuesday for direct cash cattle trade business.  Packer inquiry was limited and no bids surfaced.  Asking prices were at $157-plus live in the South, while the North remained quiet.  Look for business to pick up over the balance of the week. 

At the Callaway Livestock Center in Missouri, compared to last week feeder calves 450 to 500 pounds and 550 to 600 pounds were firm to $4 higher.  Steers 500 to 550 pounds and 600 to 650 pounds were $5 to $10 higher and steers over 650 pounds were firm with a firm undertone on a light offering.  Feeder heifers 400 to 600 pounds were $5 to $7 higher with heifers over 600 pounds firm.  The USDA says demand was good to very good on a heavy supply.  Supply included a top-quality offering of calves with several consignments of fancy black steers and heifers weighing from 400 to 650 pounds that sold on a very active market.  Feeder supply included 54% steers and 41% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 501 to 544 pounds brought $199 to $217 and feeder steers 551 to 599 pounds brought $193.50 to $202.  Medium and Large 1 feeder heifers 503 to 549 pounds brought $176 to $186 and feeder heifers 552 to 597 pounds brought $174 to $184. 

Boxed beef closed lower on light demand for moderate offerings.  Choice closed $.66 lower at $242.65 and Select closed $1.97 lower at $219.14.  The Choice/Select spread is $24.15.  Estimated cattle slaughter was 128,000 head – even on the week and up 4,000 on the year. 

Lean hog futures ended the day lower on demand uncertainties and the lack of direction from the cash market.  February lean hogs closed $3.60 lower at $86.92 and April lean hogs closed $3.02 lower at $92.80. 

Cash hog closed mixed with a solid negotiated run. Demand for US pork has held relatively strong on the global market despite concerns about a slowing economy.  However, should there be a disruption it could put pressure on prices.  Processors were a little more aggressive in their procurement efforts and moved larger numbers early on today.  The industry is also watching the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.43 higher with a base range of $78 to $84.75 and a weighted average of $82.12; the Iowa/Minnesota closed $.84 lower with a weighted average of $83.16; the Western Corn Belt closed $.68 lower with a weighted average of $83.16 the Eastern Corn Belt had no comparison but a weighted average of $81.40. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were $1 lower with moderate demand for light offerings at $43 to $55.  Barrows and gilts were $1 lower with moderate demand for moderate offerings at $56 to $66.  Boars ranged from $15 to $20 and $10. 

Pork values closed sharply higher – up $3.36 at $89.92.  Bellies, picnics, hams, loins, and butts were all higher.  Ribs closed lower. Estimated hog slaughter was 491,000 head – up 4,000 on the week and up 20,000 on the year.  Monday’s hog slaughter has been revised to 483,000 head.