Cattle futures mixed waiting on cash trade

Market News

Cattle futures mixed waiting on cash trade

Chicago Mercantile Exchange live and feeder cattle futures were mixed ahead of this week’s widespread direct business. December live was down $.35 at $131.77 and February was up $.22 at $136.32. November feeders were $.32 lower at $155.92 and January was $.75 higher at $158.47.

Direct cash cattle trade was quiet Monday as buyers and sellers are busy taking inventory. Bids and asking prices weren’t able to become established and its likely significant trade volume will hold out until Midweek or later. Deals last week had a full range of $125 to $132, mostly $132, which was $3 higher than the previous week’s weighted averages.  Northern dressed business ranged from $204 to $209, mostly $207, $4 higher than the prior week’s weighted average basis in Nebraska. 

Boxed beef closed lower on light demand for very light offering.  Choice is $1.10 lower at $283.20 and Select is $2.25 lower at $267.28. The Choice/Select spread is $15.92.

Estimated cattle slaughter is 121,000 head, even on the week and up 1,000 on the year.

In Missouri last week, compared to the previous week feeder steers and heifers were uneven.  Better quality weaned and vaccinated cattle were steady to $5 higher while a much larger offering of unweaned, new crop calves were steady to $5 lower.  Several load lots of heavy 8-weight steers were about steady to where they’ve been in recent weeks. Receipts were up on the week and the year.  Feeder supply included 51% steers and 44% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $132 to $175 and feeder steers 850 to 899 pounds brought $131 to $162.  Medium and Large 1 feeder heifers 500 to 548 pounds brought $125 to $165 and feeder heifers 700 to 748 pounds brought $120 to $160.  

Lean hog futures were mostly higher on spread trade and the higher midday move in pork. December was down $.07 at $75.80 and February was up $.62 at $81.17.

Cash hogs closed weak with moderate negotiated purchases.  Demand for US pork on the global market and domestically has been strong, which is expected to continue.  However, should a disruption to demand occur it would likely send prices tumbling. Processors continue to monitor the availability of market-ready hogs and remain able to move larger numbers at lower prices.

Barrows and gilts at the National Daily Direct were $.48 lower with a base range of $55 to $58 and a weighted average of $57.46; the Iowa/Minnesota had a weighted average of $56.81; the Western Cornbelt a weighted average of $56.78; the Eastern Cornbelt was not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets were $1 lower at $59.

Pork values closed lower – down 78 cents at $93.93. Bellies closed sharply lower, down $8.64. Loins and picnics also closed sharply lower. Hams were sharply higher. Ribs and butts were higher.

Estimated hog slaughter is 486,000 head, up 19,000 on the week and 6,000 on the year.