Cattle Futures Slide Amid Market Uncertainty

The cattle futures market experienced a downturn this week, with both live and feeder cattle contracts closing lower at the Chicago Mercantile Exchange. The decline came ahead of the week's direct business and the highly anticipated release of the USDA's Cattle on Feed report on Friday.

Navigating the Volatile Cattle Market

Cattle Futures Retreat Ahead of Key Reports

The December live cattle contract closed $0.25 lower at $187.87, while the February live cattle contract closed $0.20 lower at $188.62. In the feeder cattle market, the November contract closed $1.70 lower at $247.22, and the January contract closed $2.22 lower at $243.82. This decline in futures prices reflects the cautious sentiment among market participants as they await the release of crucial industry data.

Quiet Direct Cash Cattle Trade

Direct cash cattle trade activity was relatively subdued on Wednesday, with bids proving elusive for much of the day. A handful of deals were reported in parts of Iowa at $186.50, while asking prices in the South stood at $190 live. The North, however, remained quiet, as both buyers and sellers appear to be holding their ground. Significant trade volume may not materialize until Thursday or Friday, as market participants await the Cattle on Feed report.

Mixed Signals in the Feeder Cattle Market

At the Kingsville Livestock Auction in Missouri, most cattle were steady on the week, with lightweight calves under 400 pounds selling with a higher undertone. Receipts were up on the week and the year, with feeder supply including 63% steers and 65% of the offering over 600 pounds. Medium and Large 1 feeder steers weighing 600 to 644 pounds brought $276 to $292, while those weighing 812 to 844 pounds brought $252 to $260.85. In the heifer market, Medium and Large 1 feeder heifers weighing 525 to 540 pounds brought $278.50 to $286, and those weighing 713 to 717 pounds brought $251.50 to $255.

Boxed Beef Prices Reflect Mixed Demand

Boxed beef prices closed mixed, with Choice beef $2.55 lower at $321.41 and Select beef $0.97 higher at $295.77. The Choice-Select spread narrowed to $25.64. Estimated cattle slaughter was 124,000 head, down 1,000 on the week and about even on the year.

Lean Hog Futures Reflect Spread Trading

In the lean hog futures market, prices ended the day mixed, with spread trading activity. The December lean hog contract closed $1.05 higher at $80.17, while the February contract closed $0.60 higher at $83.40. This reflects the recent mixed trend in the pork market and steady to firm cash business.

Strengthening Cash Hog Prices

Cash hog prices closed higher, with a solid negotiated run. Processors have increased their procurement efforts, bidding up to secure the necessary numbers. Demand for U.S. pork continues to be a bright spot, providing some price support. However, the inconsistency in domestic demand has created volatility in the market. Hog weights are up slightly on the week and the year, but supplies of market-ready hogs remain ample.

Pork Values Climb Higher

Pork values closed higher, up $0.95 at $98.22. Picnics and bellies were sharply higher, while loins were also higher. Hams, ribs, and butts, on the other hand, were lower. Estimated hog slaughter was 489,000 head, up 3,000 on the week and about 2,000 on the year.