Live cattle futures higher ahead of direct business

Market News

Live cattle futures higher ahead of direct business

At the Chicago Mercantile Exchange, live cattle were higher and feeder cattle were mostly higher ahead of the week’s direct business and the higher box beef prices.  December live cattle closed $.25 higher at $108.55 and February live cattle closed $.12 higher at $110.52.  November feeder cattle closed $.42 lower at $136.97 and January feeders closed $.07 lower at $134.05.

Direct cattle trade activity was typical for a Monday, quiet.  Showlists this week are higher in Nebraska, Colorado, and Kansas, but slightly lower in Texas.  Bids and asking prices have yet to surface.  And it’s more than likely significant trade volume will hold out until later in the week. 

At the Oklahoma National Stockyards, compared to last week, feeder steers and heifers sold $10 to $12 higher.  Steer and heifer calves were $10 to $15 higher.  The USDA says demand was good to very good and quality was average to attractive.  Less than ideal weather conditions limited this week’s offering and receipts were down slightly on the week and down significantly on the year.  Feeder supply included 57 percent steers and 38 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 458 to 499 pounds brought $156 to $173 and feeder steers 522 to 548 pounds brought $151.50 to $159.  Medium and Large 1 feeder heifers 510 to 549 pounds brought $130 to $133.50 and feeder heifers 564 to 598 pounds brought $129.85 to $130. 

Boxed beef closed firm to higher on good demand for moderate offerings.  Choice closed $.55 higher at $208.65 and Select is $1.38 higher at $192.62.  The Choice/Select spread was $16.03. Estimated cattle slaughter is 119,000 head – up 4,000 on the week and 3,000 on the year. 

Lean hog futures closed mostly lower on long-term supply and demand concerns and the lower cash trade.  December lean hogs closed $.37 higher at $65.95 and February lean hogs closed $.25 lower at $65.30. 

Cash hogs closed lower with a fairly light negotiated run.  Supplies of market-ready barrows and gilts are more than ample.  That, combined with the continued large slaughter runs, are weighing heavily on cash hog prices.  Processors keep pushing the daily slaughter totals higher and that’s helping keep the supply chain moving and help move at least some of the backlog of hogs in the production system from the COVID-related slowdowns and shutdowns, but it’s adding more pork to an already saturated market.  However, the industry remains optimistic demand for US pork will continue to see strength globally. Barrows and gilts at the National Daily Direct closed $1.11 lower with a base range of $56 to $62.01 for a weighted average of $59.96; the Iowa/Minnesota had no comparison but a weighted average of $59.85; the Western Corn Belt closed $.75 lower with a weighted average of $60.21.  Prices at the Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 higher at $40. 

Pork values closed firm – up $.34 at $84.14.  Ribs and hams were sharply higher.  Butts and picnics were higher.  Loins were weak. Estimated hog slaughter is 493,000 head – up 6,000 on the week and up 1,000 on the year.