Cattle futures lower at midweek

Market News

Cattle futures lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of wide-spread direct business and Friday’s On Feed report from the USDA.  February live cattle closed $1.42 lower at $188.32 and April live cattle closed $1.10 lower at $190.47.  January feeder cattle closed $.47 lower at $257 and March feeder cattle closed $.90 lower at $257.37. 

Direct cash cattle trade activity was relatively quiet for most of the day Wednesday.  Bids did surface at $195 live and $305 dressed, but were passed.  Asking prices were around $193 to $195 live in the South, but weren’t established in the North.  Significant trade volume will likely be delayed until sometime Thursday or Friday.

At the Interstate Regional Stockyards in Missouri, there were limited comparisons.  Feeder steers under 650 pounds were steady to $4 lower.  Steers over 650 pounds were firm to $4 higher.  Feeder heifers under 600 pounds were unevenly steady and the few over 600 pounds were steady to $3 lower.  Receipts were down on the week and the year.  Feeder supply included 43% steers and 36% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 569 to 579 pounds brought $300 to $300.50 and feeder steers 650 to 695 pounds brought $270 to $295.50.  Medium and Large 1 feeder heifers 450 to 489 pounds brought $285.50 to $310 and feeder heifers 560 to 584 pounds brought $260 to $268. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was $.79 lower at $314.84 and Select closed $2.95 lower at $285.55.  The Choice/Select spread is $29.29.   Estimated cattle slaughter was 123,000 head – down 2,000 on the week and down about 1,000 on the year.

Lean hog futures ended the day mixed, mostly higher on spread trade, with pork values up at midday.  February lean hogs closed $.85 higher at $88.90 and April lean hogs closed $.85 higher at $88.90. 

Cash hogs closed higher with a fairly light negotiated run.  Processors weren’t too aggressive in their procurement efforts Wednesday afternoon. The industry continues to monitor available supplies of market-ready hogs and hog weights, which increased nearly a half-pound this week, but are still slightly below year-ago levels. It’s also looking ahead to next week’s Quarterly Hogs and Pigs report from the USDA.  Demand for U.S. pork on the global market remains a bright spot, and is helping provide some overall price support.  Barrows and gilts at the National Daily Direct closed $.24 higher with a base range of $77 to $79 and a weighted average of $78.03; the Iowa/Minnesota closed $.35 higher with a weighted average of $78.02; the Western Corn Belt closed $.41 higher with a weighted average of $78.02.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $52.  At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $32 to $44.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed higher – up $1.58 at $96.35.  Hams and bellies were both sharply higher.  Ribs were higher.  Picnics, butts, and loins were all lower. Estimated hog slaughter was 488,000 head – up 1,000 on the week and up about 9,000 on the year.