Cattle futures lower to start the week
Market News
Cattle futures lower to start the week
At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of widespread direct business and Friday’s On Feed numbers. February live cattle closed $2.05 lower at $189.97 and April live cattle closed $1.25 lower at $191.75. January feeder cattle closed $2.10 lower at $255.55 and March feeder cattle closed $1.30 lower at $256.37.
Direct cash cattle trade activity had a typically quiet start to the week. Showlists appear to be lower across all major feeding areas. Bids and asking prices didn’t surface. Significant trade volume will likely be delayed until midweek or later, especially with Friday’s On Feed numbers from the USDA.
At midsession, at the Oklahoma National Stockyards, feeder steers were $5 to $10 higher. Feeder heifers were fully steady. Steer calves were $8 to $13 higher. Heifer calves were steady. The USDA says demand was good, and while quality overall was average, there were a few fancy drafts. Receipts were down on the week but up on the year. Feeder supply included 56% steers and 40% of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 595 pounds brought $316 to $337 and feeder steers 609 to 641 pounds brought $277 to $313. Medium and Large 1 feeder heifers 504 to 538 pounds brought $281 to $305 and feeder heifers 605 to 645 pounds brought $254 to $266.50.
Boxed beef closed higher and sharply higher with good and very good demand for moderate offerings. Choice was $.98 higher at $317.37 and Select closed $5.71 higher at $289.57. The Choice/Select spread is $27.80. Estimated cattle slaughter was 118,000 head – down 1,000 on the week and down more than 5,000 on the year.
Lean hog futures ended the day mostly lower on spread trade and technical selling, despite higher cash and wholesale business. February lean hogs closed $2.05 lower at $83.55 and April lean hogs closed $1.50 lower at $88.25.
Cash hogs closed modestly higher with a moderate negotiated run. Processors are getting a jump on the week’s business and have been more aggressive in their procurement efforts. Demand for U.S. pork on the global market has been strong, which helps provide overall price support. But domestic demand has been inconsistent, which does create some market uncertainty. The industry continues to monitor the availability of market-ready hogs and is looking to next week’s Quarterly Hogs and Pigs report. Barrows and gilts at the National Daily Direct closed $.46 higher with a base range of $77 to $80 and a weighted average of $79.39; the Iowa/Minnesota closed $.10 higher with a weighted average of $79.65; the Western Corn Belt closed $.06 higher with a weighted average of $79.43. 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 light offerings at $34 to $46. Barrows and gilts were $2 lower 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 $.92 at $95.53. Ribs and bellies were both sharply higher. Butts and loins were higher. Hams and picnics were lower. Estimated hog slaughter was 487,000 head – down 2,000 on the week and up more than 7,000 on the year.
