Market News
Cattle, hog futures continue decline under broader market pressure
At the Chicago Mercantile Exchange, live cattle ended the day sharply lower on follow-through selling and the ongoing meltdown of the broader markets amid the coronavirus outbreak concerns. Feeder cattle were lower on the same factors. April live cattle closed $3.72 lower at $91.85 and June live cattle closed $4.50 lower at $85.25. March feeder cattle closed $4.50 lower at $108.50 and April feeder cattle closed $4.50 lower at $108.10.
An active direct cash cattle trade has developed across many areas, which is very atypical for a Monday. Southern live deals ranged from $105 to $110, that’s $1 higher to $4 lower than last week’s weighted averages. Colorado has some trade reported at $105, $5 lower than last week. Northern dressed deals are at $170, almost $5 lower than last week’s weighted average basis in Nebraska. Showlists this week are larger in Texas, about steady in Kansas, but lower in Nebraska and Colorado.
At the Joplin Regional Stockyards in Missouri, compared to last week steers and heifers were $10- to $15 lower with some steer calves $20 lower. The USDA says demand was moderate to light and the supply was light. Receipts of 1,724 head were down significantly on the week and on the year. Feeder supply included 52 percent steers and 36 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 515 to 545 pounds brought $145 to $149 and feeder steers 605 to 647 pounds brought $133 to $136.50. Medium and Large 1 feeder heifers 459 to 465 pounds brought $133 to $135 and feeder heifers 738 pounds brought $100.
Boxed beef closed sharply higher on heavy demand and offerings. Choice closed $16.22 higher at $224.36 and Select closed $14.73 higher at $216.71. The Choice/Select spread closed at $7.65.
Estimated cattle slaughter is 116,000 head – down 6,000 on the week and down 2,000 on the year. Saturday’s cattle slaughter has been revised to 47,000 head.
Lean hog futures ended the day sharply lower on follow-through selling and broader market pressure as the coronavirus outbreak continues to add volatility to the market. April lean hogs closed $2.40 lower at $53.97 and May lean hogs closed $4.50 lower at $58.20.
Cash hogs closed weak with large negotiated purchases. The industry continues to watch the supply and demand situation. Packers are moving larger numbers possibly to get ahead of any potential shutdown of a packing plant from the coronavirus outbreak. Domestic demand has remained strong and that’s overall supportive to prices and helping to mitigate any potential losses. Barrows and gilts at the National Daily Direct closed $.59 lower with a base range of $48 to $56 for a weighted average of $53.50; the Iowa/Minnesota closed $.52 lower for a weighted average of $53.73; the Western Corn Belt is $.50 lower for a weighted average of $53.73; the Eastern Corn Belt had no comparison for a weighted average of $53.10.
At Illinois, slaughter sow prices are steady with good demand for moderate to heavy offerings at $19 to $28. Barrow and gilt prices were $1 to $2 higher with moderate to good demand for moderate offerings at $32 to $38. Pork values closed sharply higher – up $3.54 at $73.38. All of the primals closed higher, with butts, bellies, and picnics leading the way.
Estimated hog slaughter is 497,000 head – up 6,000 on the week and up 32,000 on the year.
