Cattle futures mixed, preparing for direct business

Market News

Cattle futures mixed, preparing for direct business

Chicago Mercantile Exchange live and feeder cattle futures were mixed, watching the distribution of this week’s show list. February live was down $.35 at $190.30 and April was $.32 lower at $193.02. January feeders were up $.25 at $261.62 and March was $.50 higher at $261.05.

Direct cash cattle markets were quiet. This week’s show list looks mixed, larger in Colorado, Kansas, and Nebraska, smaller in Texas. No bids or asking prices are available yet with widespread trade possibly waiting until Thursday or Friday. Early expectations are for another round of higher prices this week due to strong demand for beef and buyers not wanting to be caught short, even during the holidays. Last week, in light to moderate activity, live business in the South was mostly at $192, $1 higher than the previous week, while dressed trade in the North was primarily at $307, up $2. Trade volume and formula totals were below the week before.

Boxed beef closed sharply higher with moderate movement. Choice was up $2.99 at $325.37 and Select beef was $3.63 higher at $294.76 for a spread of $30.61. The estimated cattle slaughter of 123,000 head was up 5,000 on the week with no comparison to a year ago.

At midsession for the Joplin Regional Stockyards in Missouri, compared to the auction on the 16^th, feeder steers were $2 to $6 higher with feeder heifers down $2 to up $6. The USDA says receipts were up from that last test and above a year ago. The entire run were feeder cattle, 68% of those steers, the rest heifers, and 82% of the offering weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 700 to 800 pounds sold at $253 to $281 and 800-to-900-pound steers ranged from $247 to $264.85. Medium and Large 1 feeder heifers weighing 600 to 700 pounds were reported at $251 to $273 and 700-to-800-pound heifers brought $241.50 to $253.

Lean hog futures were down sharply on technical selling, ignoring the largely positive cash and wholesale fundamentals during the session. February was $2.52 lower at $81.62 and April was down $2.47 at $87.05.

Cash hogs were steady to higher with light closing negotiated numbers at the major direct markets. It was a slow start to the second consecutive holiday week and the trend for the remaining business hours in 2024 will depend on how current buyers want to stay ahead of the New Year. It does look like at least some buyers needed near-term supplies, leading to Monday’s higher finish, but it remains to be seen how aggressive the rest of the week is, especially if domestic pork demand falters.

National direct barrows and gilts closed $1.54 higher with a base price range of $73 to $80 for a weighted average of $78.81, with Iowa/Southern Minnesota up $1.26 at $79.67 and the Western Corn Belt $1.48 higher, also at $79.67. The butcher hog markets in Dorchester, Wisconsin and Garnavillo, Iowa were up $2 at $52. Illinois direct sows were steady at $32 to $44 on moderate to good demand for moderate offerings. Barrows and gilts were steady at $46 to $56 with moderate demand and offerings. Boars ranged from $15 to $30.

Pork closed $.71 lower at $94.36. Big losses in the hams and bellies canceled out gains in loins, butts, picnics, and ribs. The estimated hog slaughter of 490,000 head was unchanged on the week with no comparison to a year ago.