Live cattle futures higher ahead of widespread direct business

Market News

Live cattle futures higher ahead of widespread direct business

At the Chicago Mercantile Exchange, live cattle closed higher and feeder cattle were mostly higher ahead of the week’s direct business and the stronger wholesale values during the session.  October live cattle closed $.12 higher at $104.12 and December live cattle closed $.30 higher at $105.45.  October feeder cattle closed $.10 lower at $134.50 and November feeder cattle closed $.70 higher at $130.77. 

A very scattered direct cash cattle trade took place in the South on Tuesday.  Live deals in Kansas were at $106, that’s fully steady with Monday’s business and $2 less than last week’s weighted averages.  Dressed deals in Nebraska were at $166 and in Iowa at $163 to $166. Asking prices for the day were around $108 live in the South, while the North remained quiet.  Bids in other areas were at $104 live in the South and $166 dressed in the North. 

At the Callaway Livestock Center in Missouri, compared to last week, steer and heifer calves 450 to 600 pounds were mostly $7 to $10 lower with spots of $12 lower.  Steers 650 to 750 pounds were steady to $4 lower.  Feeder heifers 600 to 659 pounds were mostly steady with a light test of heifers over 700 pounds sold with a lower undertone.  The USDA says demand was moderate to light with unweaned calves finding a few takers.  The best demand was on yearling steers 650 to 750-pounds.  Receipts were up on the week and the year.  Feeder supply included 64 percent steers and 63 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 697 pounds brought $144 to $151.50 and feeder steers 884 to 892 pounds brought $135.10 to $136.60.  Medium and Large 1 feeder heifers 508 to 547 pounds brought $136.50 to $145 and feeder heifers 619 to 624 pounds brought $140 to $144. 

Boxed beef cutout values closed steady to firm on moderate demand for heavy offerings.  Choice closed $.86 higher at $210.60 and Select closed $.17 lower at $191.67.  The Choice/Select spread is $18.93.  Estimated cattle slaughter is 121,000 head – up 1,000 on the week and 2,000 on the year. 

Lean hog futures closed lower on fund selling and the lower cash trade during the session.  December lean hogs closed $2.17 lower at $69.25 and February lean hogs closed $1.57 lower at $69.27. 

Cash hogs closed firm with a solid negotiated run.  Packers bid up to move their desired numbers.  While supplies of market-ready hogs remain more than ample and slaughter runs continue to push higher, the industry is optimistic demand for US pork will see a boost on the global market.  There’s been a shift in the global pork supply as several Asian countries have blocked imports of German pork following their detection of African swine fever in their wild boar population in September. Barrows and gilts at the National Daily Direct closed $.58 higher with a base range of $57.54 to $66 and a weighted average of $62.31; the Iowa/Minnesota closed $.84 higher for a weighted average of $65.01; the Western Corn Belt is $.84 higher with a weighted average of $65.01.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $40, which is steady with Monday, but $10 lower than last week’s last reported prices. At Illinois, slaughter sow prices were $2 higher with good demand for heavy offerings at $22 to $36.  Barrow and gilt prices were $2 to $4 lower with moderate to good demand for moderate to heavy offerings at $37 to $43.  Boars ranged from $1 to $5. 

Pork values closed lower – down $1.19 at $96.91.  Hams were sharply lower.  Butts and ribs were weak.  Loins, bellies, and picnics were all higher. Estimated hog slaughter is 488,000 head – even on the week and up 1,000 on the year.  Monday’s hog slaughter has been revised to 477,000 head.