In the world of market news, cattle futures are eagerly awaiting the development of direct business. At the Chicago Mercantile Exchange, live cattle showed a mixed trend, with most prices moving lower ahead of this significant development. Feeders, on the other hand, closed higher due to the lower movement in corn. February live cattle settled at $189.75, down by $0.22, while April live cattle closed at $191.57, down by $0.17. January feeder cattle ended $1.92 higher at $257.47, and March feeders closed $1.90 higher at $258.27.
Direct Cash Cattle Trade Activity
On Tuesday, direct cash cattle trade activity remained quiet once again. Bids failed to surface, and asking prices were floated in the South at $193 to $195 for live cattle. The North was relatively quiet. It is likely that significant trade volume will be postponed until the latter half of the week, especially with the Friday's Cattle on Feed report from the USDA.In Missouri at the Callaway Livestock Center, steers in the 450 to 500-pound range were mostly $3 to $10 higher. Steers weighing 500 to 550 pounds were steady to firm. Steers ranging from 550 to 650 pounds saw a price increase of $4 to $7, with some spots reaching $10 higher. Steers between 650 and 700 pounds were steady to firm. Feeder heifers in the 400 to 500-pound range were steady to firm. Most heifers in the 500 to 600-pound range were steady to $5 higher, and there were spots of $10 higher for heifers in the 500 to 550-pound range. Heifers weighing 600 to 650 pounds were also steady to firm. The USDA reported that the overall quality of the week's offering was very good, with an attractive supply of steer and heifer calves. There were several standout sales this week. Receipts were down compared to the previous week but up compared to the same period last year. The feeder supply consisted of 62% steers, and 55% of the offering was over 600 pounds. Medium and Large 1 feeders weighing 510 to 549 pounds fetched $324 to $355, while feeder steers weighing 602 to 639 pounds brought $296 to $322. Medium and Large 1 feeder heifers weighing 553 to 595 pounds brought $280 to $305.50, and feeder heifers weighing 600 to 620 pounds brought $280 to $292.Boxed Beef and Its Performance
Boxed beef closed lower as there was a light demand for moderate offerings. Choice beef dropped by $1.74 to $315.63, and Select closed $1.07 lower at $288.50. The Choice/Select spread is $27.13. The estimated cattle slaughter for the day was 123,000 head, which is 3,000 more than the previous week but nearly 1,000 less than the same period last year.Lean Hog Futures and Cash Hog Prices
Lean hog futures ended the day mostly lower due to spread trade. February lean hogs closed $0.35 lower at $83.20, and April lean hogs closed $0.20 lower at $88.05. Cash hogs also closed lower with a fairly light negotiated run. Processors were not overly aggressive in their procurement efforts on Tuesday after a solid start to the week. The industry is looking forward to next week's Quarterly Hogs and Pigs report to gain a better understanding of the supply situation. Demand for U.S. pork on the global market remains strong, providing some price support. However, there are long-term concerns about domestic demand. At the National Daily Direct, barrows and gilts closed $1.60 lower with a base range of $71 to $80 and a weighted average of $77.79. The Iowa/Minnesota market closed $1.98 lower with a weighted average of $77.67, and the Western Corn Belt closed $1.82 lower with a weighted average of $77.61. Prices at the Eastern Corn Belt were not reported due to confidentiality. At the Midwest cash markets, butcher hog prices remained steady at $52. In Illinois, slaughter sow prices were $2 lower with moderate demand for heavy offerings at $32 to $44. Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58. Boars ranged from $20 to $30 and $15 to $25. Pork values closed lower by $0.50 at $94.77. Butts, ribs, hams, and loins all showed a downward trend, while picnics and bellies were higher. The estimated hog slaughter for the day was 488,000 head, which was even compared to the previous week and about the same as the same period last year.
