Cattle futures sharply lower to start the week

Market News

Cattle futures sharply lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle closed sharply lower, pressured by the lower boxed beef prices during the session.  Feeder cattle were under additional pressure from the day’s higher move in corn.  October live cattle closed $3.15 lower at $104 and December live cattle closed $3.47 lower at $105.15.  October feeder cattle closed $3.50 lower at $134.60 and November feeder cattle closed $4.95 lower at $130.07.

It was a typically quiet Monday for direct cash cattle trade activity.  However, there was a light trade that was reported in parts of Texas at $106, that’s $2 lower than last week’s weighted averages.  Showlists this week are higher in Kansas and somewhat lower in Texas and Nebraska/Colorado. It’s likely significant trade volume will be delayed until sometime midweek or later. 

At midsession at the Oklahoma National Stockyards, feeder steers are $3 to $8 lower.  Feeder heifers are $1 to $5 lower.  The USDA says demand was moderate for feeder cattle and steer calves were steady on improved quality.  Heifer calves are steady to $3 lower.  Receipts were about steady on the week and down on the year.  Feeder supply included 67 percent steers and 48 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 672 to 699 pounds brought $131 to $137 and feeder steers 805 to 849 pounds brought $126 to $136.  Medium and Large 1 feeder heifers 507 to 529 pounds brought $125 to $129.50 and feeder heifers 604 to 639 pounds brought $123 to $128.   

Boxed beef closed weak to lower on light demand for moderate offerings.  Choice closed $.29 lower at $209.74 and Select closed $1.68 lower at $191.84.  Estimated cattle slaughter is 118,000 head – up 1,000 on the week and the year. 

Lean hog futures closed mixed on spread adjustments.  The market is struggling with ongoing pull between heavy supplies and demand uncertainties.  December lean hogs closed $1.62 higher at $71.42 and February lean hogs closed $.10 lower at $70.85. 

Cash hogs closed mixed with fairly light negotiated purchases.  The availability of market-ready hogs is more than ample.  Processors continue to push daily slaughter totals higher.  While that’s helping to keep the supply chain moving and work through the backlog of hogs in the production system, it does add more pork to an already saturated market.  The industry remains optimistic demand for US pork will continue to increase, which will add some price support.  Barrows and gilts at the National Daily Direct closed $1.33 lower with a base range of $58.88 to $65 for a weighted average of $60.57; the Iowa/Minnesota closed $.74 higher for a weighted average of $63.63; the Western Corn Belt closed $.74 higher with a weighted average of $63.63. The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are at $40.  At Illinois, slaughter sow prices were steady with good demand for moderate offerings at $20 to $40.  Barrow and gilt prices were weak with good demand for moderate offerings at $41 to $45.  Boars ranged from $1 to $5. 

Pork values closed lower – down $1.09 at $98.10.  Loins and butts were sharply lower, and picnics were lower.  Hams, ribs, and bellies were higher to sharply higher.  Estimated hog slaughter is 488,000 head – up 10,000 on the week and down 2,000 on the year. 

.