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Live cattle mixed, feeders up ahead of inventory report

Chicago Mercantile Exchange live cattle were mixed and feeders were higher ahead of the week’s direct business and Tuesday’s semi-annual USDA Cattle Inventory report. The U.S. inventory at the start of 2023 was down 3% on the year and numbers point to an even tighter supply in the coming months. February live was up $.10 at $158.85 and April was down $.32 at $163.02. March feeders were $2.22 higher at $186.15 and April was up $1.77 at $190.05.

Direct cash cattle markets were quiet. Early asking prices are $158+ on the live basis, not established yet for dressed. This week’s show list looks mixed, smaller in Texas, but larger in Kansas, Colorado, and Nebraska. Many of the major feedlots are seeing bitterly cold conditions, which should start to ease over the next couple of days, about when packer inquiry is expected to improve.

Boxed beef closed mixed with good movement. Choice was down $2.01 at $266.09 and Select beef was up $1.40 at $252.92. The estimated cattle slaughter of 123,000 head was steady on the week and up 4,000 on the year.

At the Imperial Auction Market feeder cattle sale in Nebraska, there was no test with no available comparison to the previous week. The USDA says that receipts were down from the previous test on the 17th and a year ago. Demand was good for all offerings. 64% of the offering were steers and 85% of the total run weighed less than 600 pounds. Medium and Large 1 feeder steers weighing 480 to 530 pounds sold at $211 to $232 and 580-to-630-pound steers were reported at $195 to $218. Medium and Large 1 feeder heifers weighing 360 to 375 pounds ranged from $213 to $215 and 500 to 570 pound heifers brought $193.50 to $212.

Lean hog futures were mixed on spread trade and long-term demand uncertainties. There are indications that the market ready supply might not be as tight as projected and while there have been some bright spots for pork demand, the overall perception has been at least partially skewed by production levels. February was $.27 lower at $74.87 and April was down $.10 at $86.42.

Cash hogs were steady to higher with solid closing negotiated sales. It looks like buyers were willing to bid up, at least a little, to move the needed near-term numbers and stay current with marketings. Sustained pork demand is a bearish question mark hanging over the industry.

National direct barrows and gilts closed $.77 higher with a base price range of $65 to $73 for a weighted average of $70.85, with Iowa/Southern Minnesota up $.70 at $71.19, the Western Corn Belt $.58 higher at $71.07, and the Eastern Corn Belt up $1.00 at $71.02. Midwest butcher hog markets were steady at $60 in Dorchester, Wisconsin and $66 in Garnavillo, Iowa. Illinois direct sows were steady at $30 to $42 on light to moderate demand and offerings. Barrows and gilts were steady at $54 to $64 with moderate demand for moderate offerings. Boars ranged from $10 to $20.

Pork closed $.03 lower at $80.25. Loins, picnics, and hams were lower, while butts, ribs, and hams were sharply higher. The estimated hog slaughter of 483,000 head was down 1,000 on the week, but up 5,000 on the year. Monday’s slaughter was revised to 475,000 head, 16,000 less than the initial estimate.

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