Cattle futures higher ahead of widespread direct business
Market News
Cattle futures lower at midweek
At the Chicago Mercantile Exchange, live and feeder cattle were lower on profit-taking, waiting on direct business to develop. February live cattle closed $1.87 lower at $193.70 and April lives closed $2.25 lower at $195.52. March feeders closed $2.95 lower at $264.97 and April feeder cattle closed $2.32 lower at $266.15.
Direct cash cattle trade activity was quiet again Wednesday. Bids didn’t surface. Asking prices were floated at $200 live in Kansas, while the North remained quiet. Significant trade volume will likely be delayed until sometime Thursday or Friday.
At the Hub City Livestock Auction in South Dakota, the best test on steers was 550 to 599 pounds, and 600 to 699 pounds were $8 to $12 higher. The best test on heifers came at 500 to 549 pounds, which were $10 to $15 lower. The USDA says demand was good to very good for the first calf offering of the year. There were many packages and loads on offer, and most calves were weaned and preconditioned. Flesh varied, and the quality was mostly average to attractive. Cattle ranged from backgrounded and grass to finishing-type cattle. The market was active. Receipts were up slightly from the most recent sale, but down on the year. Feeder supply included 60% steers and 71% of the offering was over 600 pounds. Medium and Large 1 feeder steers 651 to 691 pounds brought $296 to $320.50 and feeder steers 802 to 847 pounds brought $260 to $280.25. Medium and Large 1 feeder heifers 602 to 648 pounds brought $277 to $301 and feeder heifers 801 to 847 pounds brought $244 to $252.25.
Boxed beef closed higher with solid demand for heavy offerings. Choice was $2.82 higher at $328.61 and Select closed $1.46 higher at $306.89. The Choice/Select spread is $21.72. Estimated cattle slaughter was 122,000 head – up about 6,000 on the year.
Lean hog futures ended the day mixed on spread trade, with pork values higher during the session. February lean hogs closed $.30 higher at $79.47 and April lean hogs closed $.65 lower at $85.07.
Cash hogs closed modestly lower with a solid negotiated run. Processors were able to move needed numbers without having to get aggressive in their procurement efforts and bid up. While demand for U.S. pork on the global market remains strong, it continues to face some challenges domestically. The industry continues to monitor the availability of market-ready hogs and hog weights, which crept up almost a pound from the previous week and are slightly above year-ago weights. Barrows and gilts at the National Daily Direct closed $.38 lower with a weighted average of $78.51; the Iowa/Minnesota closed $.19 lower with a weighted average of $78.72; the Western Corn Belt closed $.32 lower with a weighted average of $78.59. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $55. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $33 to $45. Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56. Boars ranged from $20 to $30 and $15 to $25.
Pork values closed higher – up $2.13 at $90.53. All of the primals were higher, with hams and picnics leading the way. Ribs were lower. Estimated hog slaughter was 490,000 head – up about 14,000 on the year.
