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Cattle futures remain optimistic about direct trade
Chicago Mercantile Exchange live and feeder cattle were higher, optimistic about this week’s direct business. February live was up $1.30 at $191.60 and April was $1.25 higher at $194.27. January feeders were $1.40 higher at $263.02 and March was up $1.92 at $262.67.
Direct cattle markets were quiet. Asking prices were $195+ on the live basis with nothing for the dressed basis and no reported bids. Widespread trade is unlikely to get underway until Thursday or Friday. This week’s show list looks mixed, larger in Colorado, Kansas, and Nebraska, smaller in Texas. Expectations are for another round of higher business this week, propelled by solid beef demand and buyers not wanting to get caught short.
Boxed beef closed lower with moderate movement. Choice was down $1.15 at $324.22 and Select beef was $.24 lower at $294.52. The estimated cattle slaughter of 102,000 head was up 64,000 on the week, but down 19,928 on the year.
At the Bloomfield Livestock Iowa/Missouri Beef Improvement Organization special preconditioned sale in Iowa, there was no recent price comparison. The USDA says the supply was heavy and trade was active with very good demand, which also featured active bidding from the internet and over the phone. Receipts were above the previous test in late December 2023. The entire offering were feeder cattle, 58% of those were steers, and 61% of the run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 650 pounds were reported at $312 to $316.50 and 700-to-800-pound steers sold at $258.25 to $284. Medium and Large 1 feeder heifers weighing 550 to 600 pounds ranged from $287 to $302 and 600-to-650-pound heifers brought $271.50.
Lean hog futures were pressured by the lower midday move in pork and domestic demand questions for the new year. February was down $.32 at $81.30 and April was $.47 lower at $86.57.
Cash hogs were steady to higher with moderate closing negotiated numbers at the major direct markets. There was one last round of steady to higher activity in 2024 as buyers tried to secure the needed near-term numbers. That was despite some end of year weakness in the wholesale pork market and questions about domestic demand. Weather in early 2025 could have an impact on movement in some areas.
National direct barrows and gilts closed $1.27 higher with a base price range of $74 to $81 with a weighted average of $80.08, while the Western Corn Belt was up $.41, also at $80.08. Iowa/Southern Minnesota and the Eastern Corn Belt had no reported trends. The butcher hog markets in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $52. Illinois direct sows were steady at $32 to $44 with moderate to good demand for moderate offerings. Barrows and gilts were steady at $46 to $56 with moderate demand and offerings. Boars ranged from $15 to $30.
Pork closed $4.02 lower at $90.30. Loins, butts, picnics, hams, and bellies were down sharply, canceling out a modestly higher move for ribs. The estimated hog slaughter of 411,000 head was up 240,000 on the week, but down 73,840 on the year.
