In a week marked by fluctuating market trends, cattle futures saw a significant rise at the Chicago Mercantile Exchange. Both live and feeder cattle experienced gains as direct business gradually developed throughout the week. Boxed beef prices also climbed, reflecting strong demand. February live cattle closed at $190.65, up by $0.55, while April futures rose to $193.35, an increase of $0.75. January feeder cattle surged by $2.07 to close at $261.37, and March feeders finished at $260.55, up by $1.05. Direct cash cattle transactions in the South were noted at $192, marking a $1 improvement over the previous week’s average. In the North, dressed deals were recorded at $307, showing a slight uptick from earlier figures. The USDA reported robust demand for various feeder categories, especially steers suitable for summer grazing. Despite the holiday-shortened week, overall market activity remained resilient.
Market Trends and Highlights: A Closer Look
In the heart of the trading week, the Chicago Mercantile Exchange witnessed notable movements in cattle futures. Live cattle prices demonstrated steady growth, with February contracts closing at $190.65, reflecting a $0.55 increase. Meanwhile, April futures reached $193.35, up by $0.75. Feeder cattle also showed impressive gains, with January contracts climbing to $261.37, a rise of $2.07, and March futures settling at $260.55, up by $1.05. Direct cash cattle transactions in the South concluded at $192, representing a $1 increase from the prior week's weighted average. Dressed deals in the North were marked at $307, up $2 from Nebraska’s previous week’s average.
In Nebraska, ahead of the holiday week, the market saw steers under 600 pounds gaining between $10 and $15, while those over 600 pounds remained steady to $2 higher. Heifers under 700 pounds saw modest increases of $6, whereas those over 700 pounds held steady to $5 higher. The USDA highlighted particularly strong demand for steers suitable for summer pastures, along with good demand across all feeder classes. Receipts increased both weekly and annually, with feeder supply predominantly composed of steers (62%) and offerings over 600 pounds (53%). Prices for medium and large feeder steers ranged from $335 to $394 for lighter weights and $290 to $359 for heavier ones. Feeder heifers fetched between $277 and $326 for lighter weights and $268 to $301 for heavier ones.
Boxed beef prices closed higher on solid demand, with Choice cuts rising to $322.38, up $1.99, and Select cuts reaching $291.13, an increase of $2.36. The spread between Choice and Select widened to $31.25. Estimated cattle slaughter stood at 123,000 head, a 6,000-head increase from the previous week, aligning closely with year-over-year figures. Saturday’s estimated slaughter was 36,000 head, up 21,000 from the previous week and marginally higher year-on-year.
Lean hog futures ended the day mixed, influenced by spread trading, despite pork values remaining strong during the session. February lean hogs closed slightly lower at $84.15, down $0.05, while April futures rose to $89.52, up $0.27. Cash hog prices declined due to limited negotiated sales. Barrows and gilts closed at $77.27 on average, down $1.81, with regional variations noted. Pork values dipped slightly to $95.07, with certain cuts like picnics, loins, and butts experiencing declines, while bellies, ribs, and hams saw increases. Estimated hog slaughter was 487,000 head, up 4,000 from the previous week and more than 8,000 higher year-over-year. Saturday’s estimated slaughter was 413,000 head, significantly up from the previous week and year.
From a journalistic perspective, this week's market performance underscores the resilience of the cattle sector amidst seasonal fluctuations. The steady increase in cattle futures and robust demand for boxed beef highlight the industry's adaptability and strength. Despite the holiday-shortened week, the market's ability to maintain positive momentum suggests a promising outlook for the coming months. The data also indicates that while some segments, such as lean hogs, faced challenges, the overall livestock market remains robust, driven by consistent global demand and strategic adjustments in supply chains.
