The livestock and pork markets have experienced a mix of gains and losses. Cattle futures saw significant increases as direct trade developed at higher prices, while boxed beef closed lower with moderate movement. In contrast, lean hog futures showed mostly positive trends, driven by spread trade and midday pork price movements. Cash hogs were mixed, influenced by weather concerns and market dynamics. The USDA's weekly export sales numbers are delayed until Friday, adding an element of uncertainty to the outlook.

Increased Cattle Futures Amidst Rising Trade Prices

Cattle futures witnessed a notable surge as direct trade emerged at elevated prices. The Chicago Mercantile Exchange reported sharp increases in live and feeder cattle futures, reflecting robust market activity. Despite light trading volumes, prices for live cattle rose significantly in Texas and Kansas, surpassing last week’s averages by $2 to $3. Buyers in Nebraska and Iowa set asking prices slightly above these levels, anticipating higher demand due to impending weather challenges.

Despite the upward trend in cattle prices, the wholesale market exhibited signs of softening. Boxed beef prices declined modestly, with Choice cuts dropping by $.74 to $323.48 and Select cuts falling by $.29 to $294.23. This widening gap between wholesale and futures prices suggests potential impacts on consumer demand. Additionally, the estimated cattle slaughter of 125,000 head was up 6,000 from the previous week but down 224 compared to the same period last year. Special value-added sales at regional stockyards also showed firm undertones, with receipts increasing from both prior sales and the previous year. Medium and Large 1 feeder steers weighing 500 to 600 pounds sold within a range of $310 to $360, indicating strong buyer interest in quality livestock.

Mixed Performance in Hog Markets Amid Weather Concerns

Hog markets displayed mixed performance, with lean hog futures mostly rising due to spread trade and midday pork price movements. Nearby contracts weakened slightly, while deferred months remained firm. Cash hogs were mixed, with light to moderate closing negotiated numbers for major direct markets. Many buyers appeared to have secured necessary near-term supplies, possibly in preparation for upcoming weather disruptions. A severe storm could impact early next week’s movements, leading to strategic buying patterns.

The average barrow and gilt weight in key reporting areas increased slightly from the previous week but was marginally lower year-over-year. National direct barrows and gilts closed steady, with a weighted average of $80.08. However, butcher hogs saw sharp increases in specific regions, such as Dorchester, Wisconsin, where prices rose by $3 to $55, and Garnavillo, Iowa, where they climbed by $8 to $60. Illinois Direct sows maintained steady prices between $32 and $44, with moderate to good demand despite limited offerings. Barrows and gilts also held steady, ranging from $46 to $56, reflecting balanced supply and demand dynamics. Pork prices closed lower at $89.32, with bellies experiencing a sharp decline, while loins, butts, and ribs saw slight increases. The estimated hog slaughter of 489,000 head decreased slightly from the previous week and year, highlighting ongoing volatility in the sector.