The cattle futures market experienced a downward trend to start the week, with both live and feeder cattle contracts closing lower on technical selling. Traders are positioning themselves ahead of the week's anticipated direct business, which is expected to set the tone for the market's direction in the coming days.

Navigating the Shifting Sands of the Cattle Futures Market

Cattle Futures Retreat as Traders Prepare for Direct Business

At the Chicago Mercantile Exchange, live cattle futures for December closed $0.85 lower at $185.07, while the February contract shed $0.97 to settle at $185.92. The feeder cattle market also saw declines, with the January contract closing $0.77 lower at $242.42 and the March contract finishing $0.90 lower at $240.25. This downward movement reflects the cautious sentiment among traders as they anticipate the week's direct cash cattle trade activity.

Mixed Showlists and Quiet Cash Cattle Trade

The direct cash cattle trade on Monday was relatively quiet, with showlists presenting a mixed picture. Showlists were somewhat higher in Nebraska and Colorado, higher in Kansas, but somewhat lower in Texas. Bids and asking prices failed to materialize, suggesting a lack of urgency among market participants. The bulk of the week's business is expected to unfold in the coming days, as traders and producers alike await the market's next move.

Feeder Cattle and Calves Struggle Amid Weather Challenges

At the Oklahoma National Stockyards, feeder cattle and calves were not well tested, with the few comparable sales remaining nearly steady. The USDA reported that demand was moderate to good, but heavy rains have limited recent livestock movement in the region. Receipts were down significantly on both a weekly and yearly basis. The feeder supply included 56% steers and 54% of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 601 to 642 pounds brought $253 to $264, while those weighing 708 to 733 pounds fetched $248 to $254. For feeder heifers, Medium and Large 1 animals weighing 500 to 522 pounds sold for $242 to $257, and those weighing 663 to 672 pounds brought $238 to $241.

Boxed Beef Prices Climb Amid Solid Demand

In the boxed beef market, prices closed higher with solid demand for moderate offerings. Choice beef was $0.57 higher at $316.91, while Select beef closed $2.13 higher at $287.16. The Choice-Select spread stood at $29.75. Estimated cattle slaughter for the week was 120,000 head, down 1,000 from the previous week and more than 2,500 lower than the same period last year.

Lean Hog Futures Finish Mixed as Cash Hog Prices Decline

In the lean hog futures market, prices ended the day in a mixed pattern, reflecting spread trading. The December contract closed $0.85 lower at $83.22, while the February contract shed $0.70 to settle at $85.32. In the cash hog market, prices closed lower with a relatively light negotiated run. Processors have been starting the week slowly and have not been aggressive in their procurement efforts, leading to the price decline. Despite the recent boost in domestic demand, there are long-term concerns about its consistency. The industry continues to monitor the availability of market-ready hogs and hog weights.

Pork Values Remain Steady as Demand Fluctuates

Pork values were about steady, up $0.04 at $104.01. While loins, butts, ribs, and picnics were sharply higher, hams and bellies were lower and sharply lower. Butcher hog prices at the Midwest cash markets remained steady at $63. Estimated hog slaughter for the week was 489,000 head, up 1,000 from the previous week but down nearly 1,000 compared to the same period last year.