Cattle futures higher ahead of widespread direct business
Market News
Cattle futures higher to start the week
At the Chicago Mercantile Exchange, live and feeder cattle were higher, optimistic about this week’s direct business. February lives closed $1.15 higher at $195.20 and April lives closed $1.27 higher at $197.27. March feeders closed $1.37 higher at $265.55 and April feeders closed $1.80 higher at $266.20.
Direct cash cattle trade activity was quiet Monday. Showlists for the week are higher across all major feeding areas. Bids and asking prices didn’t surface and significant trade volume isn’t expected until midweek or later.
At mid-session, at the Oklahoma National Stockyards, feeder steers and steer calves were $2 to $6 higher. Feeder heifers were $3 to $4 higher. Heifer calves were $2 to $7 higher. Feeders and calves saw instances of up to $15 higher in spots. The USDA says demand was good and quality and weigh-up conditions were much better than the most recent offerings. Receipts were up on the week, but down on the year. Feeder supply included 61% steers and 62% of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 642 pounds brought $298 to $322 and feeder steers 651 to 698 pounds brought $275 to $299. Medium and Large 1 feeder heifers 500 to 549 pounds brought $278 to $300 and feeder heifers 606 to 641 pounds brought $258 to $275.
Boxed beef closed higher and sharply higher on solid demand for moderate offerings. Choice was up $1.86 higher at $327.10 and Select closed $6.61 higher at $303.33. The Choice/Select spread is $23.77. Estimated cattle slaughter was 109,000 head – down 14,000 on the week and up nearly 5,000 on the year.
Lean hog futures ended the day mixed, with concerns about long-term demand uncertainty. February lean hogs closed $1.12 lower at $79.65 and April lean hogs closed $.10 higher at $85.87.
Cash hogs closed mixed with a moderate negotiated run. Processors were able to move needed numbers without having to get too aggressive in their procurement efforts. Demand overall for U.S. pork has been solid on the global market, but domestic demand has been very inconsistent. The industry is also monitoring the supplies of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct were $.06 higher with a base range of $68 to $80 and a weighted average of $79.65; the Iowa/Minnesota closed $.12 lower with a weighted average of $79.80; the Western Corn Belt closed $.18 lower with a weighted average of $79.65. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets were steady at $55. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $32 to $44. 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 lower – down $1.71 at $87.83. Butts, hams, and loins were sharply lower. Picnics were lower. Bellies were sharply higher. Estimated hog slaughter was 447,000 head – down 34,000 on the week and down about 22,000 on the year.
