Cattle futures supported by stronger boxed beef

Market News

Cattle futures supported by stronger boxed beef

The USDA is having technical issues, so the release of this (Monday_ afternoon’s reports will be delayed.  Brownfield will update the information online as soon as possible.  Some of the reports that have been impacted are afternoon boxed beef prices, afternoon pork values, and afternoon cash hog prices. 

At the Chicago Mercantile Exchange, live cattle ended the day mostly higher and feeders were higher, supported by the sharply higher box beef prices during the session.  February live cattle closed $.17 lower at $114.87 and April live cattle closed $.15 lower at $121.70.  March feeder cattle closed $.20 higher at $137.92 and April feeders closed $.32 higher at $141.07. 

Direct cash cattle trade activity started the week quietly with bids and asking prices not yet established.  Showlists this week are mixed, slightly higher in Texas, but lower in Kansas and Nebraska/Colorado.  It’s likely the bulk of this week’s business will be delayed until at least Midweek or later. 

At Midsession at the Oklahoma National Stockyards, compared to last week feeder steers were $2 to $5 lower on light offerings and feeder heifers were $1 to $2 lower on a limited comparable test.  Steer and heifer claves are $2 to $4 higher.  The USDA says demand was moderate to good for calves.  Receipts were up on the week and the year.  Feeder supply included 61 percent steers and 58 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 558 to 596 pounds brought $146 to $166.75 and feeder steers 600 to 647 pounds brought $142 to $166.  Medium and Large 1 feeder heifers 554 to 598 pounds brought $120 to $142 and feeder heifers 650 to 695 pounds brought $123 to $127.25.

Estimated cattle slaughter is 117,000 head – up 2,000 on the week and down 3,000 on the year. 

Lean hog futures ended the day mixed on spread trade, with sharply higher wholesale values during the session and stead to weak cash business. 

Closing cash hog prices have been delayed due to technical issues at the USA.  The industry remains glued to the supply and demand picture. Supplies of market-ready barrows and gilts continue to be more than ample and daily slaughter runs continue to push higher.  While that’s beneficial to the supply chain, it also adds more pork to the market.  There is still optimism that demand for US pork will remain strong both globally and domestically, and that is largely supportive to prices.  But, if there is a hiccup anywhere in demand, it could send prices tumbling. 

Butcher hog prices at the Midwest cash markets are steady at $42. 

At Illinois, slaughter sow prices were firm with good demand for heavy offerings at $36 to $48.  Barrow and gilt prices were weak with good demand for moderate to heavy offerings at $35 to $40.  Boars ranged from $15 to $20 and $5 to $10. 

Estimated hog slaughter is 483,000 head – down 3,000 on the week and down 8,000 on the year.