Hog, cattle futures higher heading into midweek
At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of widespread direct business. February live cattle closed $.95 higher at $136.92 and April live cattle closed $1.17 higher at $141.35. January feeder cattle closed $1.62 higher at $160.85 and March feeder cattle closed $1.32 higher at $161.82.
There was a light direct cash cattle trade on Tuesday. A handful of live deals were reported at $135 in Texas, that’s about $2 to $3 lower than last week’s weighted averages. The holiday-shortened week will likely drop this week’s trade volume and business is expected to wrap up earlier than normal. Bids were at $134 live and $216 dressed.
At the Tri-State Livestock Auction in Nebraska, compared to last week steers and heifers were $1 to $5 higher. The USDA says demand was good on all offerings. Receipts were up on the week and the year. Feeder supply included 59% steers and 70% of the offering was over 600 pounds. Medium and Large 1 feeder steers 814 to 848 pounds brought $154 to $163.50 and feeder steers 860 pounds brought $162.26. Medium and Large 1 feeder heifers 652 to 660 pounds brought $153.50 to $158 and feeder heifers 702 to 734 pounds brought $145 to $150.
Boxed beef closed lower on light demand for light offerings. Choice closed $.99 lower at $261.39 and Select closed $.75 lower at $249.92. The Choice/Select spread is $11.47. Estimated cattle slaughter is 120,000 head – down 2,000 on the week and up 1,000 on the year.
Lean hog futures closed higher on oversold signals and support from the broader markets. February lean hogs closed $2.95 higher at $82.42 and April lean hogs closed $2.07 higher at $85.57.
Cash hogs closed higher with a solid negotiated run. Demand for US pork on the global market has been strong and while that is expected to continue, at least for the time being, there are some long-term demand concerns. Those concerns are putting additional pressure on prices. All eyes will be on this week’s Quarterly Hogs and Pigs report which comes out on Thursday. The industry continues to monitor the availability of market-ready hogs and processors remain able to move their desired numbers without having to get aggressive in their procurement efforts. Barrows and gilts at the National Daily Direct closed $2.18 higher with a base range of $57 to $64 and a weighted average of $60.54. Prices at the regional direct markets were not reported due to confidentiality.
Midwest cash markets are closed this week.
Pork values closed lower – down $1.58 at $84.91. Hams, loins, picnics, and bellies were all lower. Ribs and butts were higher. Estimated hog slaughter is 476,000 head – down 9,000 on the week and up 1,000 on the year.