At the Chicago Mercantile Exchange, live cattle were showing mixed trends, while feeders were on the rise. Feeders received additional support from the lower move in corn and concerns about availability. This indicates the complex interplay of factors influencing these markets. The different closing prices for various months highlight the volatility and the need for careful analysis.
Direct cash cattle trade activity faced an uneventful start to the week. The lack of bidding and asking prices on Monday set the tone for a potentially slow start. However, with the upcoming holiday and the typical post-holiday lull, the focus is now on midweek when the bulk of the business is expected to occur. This shows the importance of timing and market dynamics in the cattle trade.
At the Oklahoma National Stockyards, feeder steers and heifers saw significant price increases. They were $4 to $10 higher, with some instances reaching up to $15 higher. Steer and heifer calves also showed gains of $10 to $15, and in some cases, up to $20 higher. The USDA reported good to very good demand and average quality. Receipts were down on the week but up on the year. The composition of the feeder supply, with 58% steers and 47% over 600 pounds, provides valuable insights into the market.
The price ranges for different weight categories of feeder steers and heifers further illustrate the diversity and complexity of the market. Medium and Large 1 feeder steers weighing 552 to 597 pounds brought $296 to $323, while those weighing 653 to 698 pounds brought $260 to $289. Similarly, Medium and Large 1 feeder heifers in the 564 to 597-pound range brought $264 to $299, and those in the 600 to 648-pound range brought $242 to $269. These details offer a clear picture of the market conditions at the stockyards.
Boxed beef closed higher, with solid demand for solid offerings. Choice beef increased by $2.30 to $309.71, and Select beef rose by $1.67 to $273.74. The Choice/Select spread is $35.97. Estimated cattle slaughter was 120,000 head, up 2,000 on the week but down more than 4,000 on the year.
Lean hog futures also ended the day higher, supported by sharply higher pork values during the session. December lean hogs closed $.30 higher at $81.97, and February lean hogs closed $.25 higher at $85.92. Cash hog prices were not reported on Monday due to confidentiality. Processors were not very aggressive in their procurement efforts at the start of the week. However, with the Thursday holiday, there could be significant movements earlier in the week.
The global market demand for U.S. pork has been strong, providing some price support. But the inconsistency in domestic demand adds pressure to the market. The industry is closely monitoring the availability of market-ready hogs and hog weights. The five-day rolling averages for different regions give an indication of the market trends. For example, the five-day rolling average for barrows and gilts at the National Daily Direct is at $83.31, the average for the Iowa/Minnesota is $84.31, and the five-day rolling average for the Western Corn Belt was $83.71.
Butcher hog prices were lower at midday, down $2 at $53. Pork values closed higher, up $1.56 at $93.33. Various cuts such as ribs, hams, picnics, loins, and butts were all sharply higher, while bellies were sharply lower. Estimated hog slaughter was 489,000 head, even on the week and up about 13,000 on the year. This shows the dynamic nature of the hog market and the various factors at play.