Cattle futures finish the week higher
Market News
Cattle futures up on higher direct trade
Chicago Mercantile Exchange live and feeder cattle futures were up sharply, watching direct trade develop at higher prices. February live was up $2 at $193.60 and April was $1.77 higher at $196.05. March feeders were $3.22 higher at $266.20 and April was up $2.97 at $266.52.
Direct cattle business was light. Trade developed at $195 to $196 on the live basis in Texas and Kansas, $2 to $3 higher than last week’s weighted average. Asking prices were $196+ live, with bids at $198 live and $310 dressed in Nebraska and Iowa. Widespread activity in the north could wait until Friday, even if many buyers are short bought, trying to stay ahead of weather, and attempting to meet demand expectations. Still, the wholesale market is showing some signs of softening, with prices possibly impacting demand.
Boxed beef closed lower with moderate movement. Choice was down $.74 at $323.48 and Select beef was $.29 lower at $294.23 for a spread of $29.25. The estimated cattle slaughter of 125,000 head was up 6,000 on the week, but down 224 on the year.
In a special value-added sale at the Joplin Regional Stockyards in Missouri, there was no test to the last special, but compared to the regular sale Monday, there was a firmer undertone. The USDA says receipts were up from both that previous special sale and last year. 63% of the offering were feeder steers and half of the total run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 500 to 600 pounds were reported at $310 to $360 and 600-to-700-pound steers sold at $276 to $317. Medium and Large 1 feeder heifers weighing 500 to 600 pounds ranged from $280 to $310 and 600-to-700-pound heifers brought $261 to $270.
Lean hog futures were mostly higher on spread trade and the higher midday move in pork, with nearby contracts weak and deferred months firm to up modestly. February was down $.15 at $81.15 and April was $.02 lower at $86.55.
Cash hogs were mixed with light to moderate closing negotiated numbers for the major direct markets. It looks like many buyers at those direct markets have the needed near near-term numbers in hand and higher moves at the Midwest butcher markets could have just been an effort to get ahead of weather. A severe storm might impact movement early next week. The average barrow and gilt weight in the Iowa/Southern Minnesota/South Dakota reporting area for the week ending December 28th was 292.3 pounds, up 2.6 on the week, but down 0.2 on the year. The USDA’s weekly export sales numbers are delayed until Friday.
National direct barrows and gilts closed steady with a base price range of $74 to $81 for a weighted average of $80.08, while Iowa/Southern Minnesota had no recent comparison at $80.35 and the Western Corn Belt was down $.22 at $79.86. Butcher hogs were sharply higher, with Dorchester, Wisconsin up $3 at $55 and Garnavillo, Iowa $8 higher at $60. Illinois Direct sows were steady at $32 to $44 with moderate to good demand for light offerings. Barrows and gilts were steady at $46 to $56 on moderate demand and offerings. Boars ranged from $15 to $30.
Pork closed $.98 lower at $89.32. Bellies dropped sharply, with picnics and hams down, while loins, butts, and ribs were higher. The estimated hog slaughter of 489,000 head was down 1,000 on the week and 2,092 on the year.
