Cattle and Hog Futures Fluctuate Amid Shifting Market Dynamics

The cattle and hog futures markets experienced mixed results to start the week, with live and feeder cattle mostly higher, while lean hog futures ended the day mostly lower. The direct cash cattle trade remained quiet, with showlists presenting a mixed picture across different regions. Meanwhile, the cash hog market has been lackluster, with processors holding the upper hand in negotiations. However, strong global demand for U.S. pork is providing some price support, even as concerns linger about the long-term strength of domestic demand.

Navigating the Ebb and Flow of the Cattle and Hog Markets

Cattle Futures Climb, but Cash Trade Remains Subdued

At the Chicago Mercantile Exchange, live and feeder cattle futures saw a positive start to the week, with December live cattle closing $0.35 higher at $187.92 and February lives closing $0.50 higher at $188.70. However, the direct cash cattle trade remained quiet, typical for a Monday. Showlists this week presented a mixed picture, with higher numbers in Nebraska/Colorado but lower numbers in Kansas and Texas. Bids and asking prices have yet to be established, and significant trade volume is likely to be delayed until later in the week.The Oklahoma National Stockyards saw feeder steers and heifers steady to $2 higher, while steer and heifer calves were $2 to $6 lower. The USDA reported moderate to good demand and average quality, with most of the cattle coming off grass. Receipts were up on the week but down on the year, with feeder supply including 62% steers and 47% of the offering over 600 pounds. Prices for Medium and Large 1 feeder steers and heifers ranged from $263 to $300 per hundredweight.

Boxed Beef Closes Higher Amid Strong Demand

The boxed beef market closed higher, with Choice beef $2.10 higher at $313.32 and Select beef $1.73 higher at $290.45. The Choice/Select spread stood at $22.36. Estimated cattle slaughter was 120,000 head, up 10,000 on the week but down 3,000 on the year.

Hog Futures Retreat Amid Concerns About Domestic Demand

In the hog futures market, lean hog contracts ended the day mostly lower, with December closing $1.85 lower at $75.80 and February closing $1.32 lower at $79.82. The decline was attributed to technical selling and questions about the strength of domestic demand.The cash hog market closed firm, with a handful of negotiated purchases. However, the cash hog market has been lackluster, with processors in the driver's seat and moving hogs at their desired pace. Global demand for U.S. pork continues to be strong, providing some price support, but there are concerns about the long-term strength of domestic demand and how it could impact the market.Barrows and gilts at the National Daily Direct were $0.13 higher, with a base range of $69 to $77 and a weighted average of $74.47. Prices at the Regional Direct Markets were not reported due to confidentiality. Butcher hog prices at the Midwest cash markets were steady at midday at $60.

Pork Values Climb, but Concerns Linger

Pork values closed higher, up $0.50 at $94.97. Bellies, ribs, loins, and hams were all higher, while butts were the lone primal to move lower. Estimated hog slaughter was 479,000 head, up 8,000 on the week but even on the year.Despite the positive movement in pork values, the industry continues to monitor the availability of market-ready hogs and hog weights, as well as the long-term strength of domestic demand. The mixed signals in the cattle and hog markets underscore the need for close attention to evolving market dynamics and their potential impact on producers and consumers alike.