The livestock markets have seen mixed fortunes this week, with live and feeder cattle mostly higher ahead of the week's direct business, while lean hog futures ended the day lower on overbought signals. The cash hog market, however, has seen a sharp rise, with processors becoming more aggressive in their procurement efforts to secure the necessary supplies. The industry is closely monitoring the availability of market-ready hogs and hog weights, as demand remains paramount, both domestically and globally.

Navigating the Volatile Hog Futures Market

Cattle Futures Remain Steady Ahead of Direct Trade

At the Chicago Mercantile Exchange, live and feeder cattle futures saw modest movements, with December live cattle closing slightly lower and February live cattle closing marginally higher. January feeders closed lower, while March feeders closed higher. The direct cash cattle trade activity has been relatively quiet, with bids and asking prices not surfacing on Tuesday. Showlists are mixed, with some regions seeing higher prices and others experiencing lower prices. Significant trade volume is likely to be delayed until the latter half of the week.

Feeder Cattle Prices Surge at Callaway Livestock Center

At the Callaway Livestock Center in Missouri, the feeder cattle market saw a sharp uptick in prices, particularly for steer calves weighing 400 to 500 pounds, which sold with a sharply higher undertone. Steers in the 500 to 600 pound range were steady to firm, while those in the 600 to 700 pound range were steady to $5 higher. Feeder heifers also saw strength, with 450 to 600 pound heifers steady to firm, and 600 to 655 pound heifers selling with a higher undertone. The USDA noted that demand was good on a moderate supply, with the best demand on the good quality offerings of long-weaned 400 to 650 pound steers.

Boxed Beef Prices Mixed as Slaughter Remains Steady

In the boxed beef market, prices closed mixed, with Choice beef closing higher and Select beef closing lower. The Choice/Select spread widened to $31.97. Estimated cattle slaughter was 124,000 head, even on the week and down slightly from the previous year.

Hog Futures Pressured by Overbought Signals

Lean hog futures ended the day lower, with December and February contracts both closing significantly lower. The market appears to be reacting to overbought signals, as the industry closely monitors the availability of market-ready hogs and hog weights. Cash hog prices, however, have seen a sharp rise, with processors becoming more aggressive in their procurement efforts to secure the necessary supplies. Demand remains strong, both domestically and globally, which is providing support for hog prices.

Pork Values Decline Sharply, but Butcher Hog Prices Steady

Pork values closed sharply lower, down $2.58 at $101.43, with bellies, loins, butts, and hams all seeing significant declines. Ribs and picnics were the only cuts to see higher prices. Butcher hog prices at the Midwest cash markets, however, remained steady at $63. Estimated hog slaughter was 488,000 head, even on the week and up slightly from the previous year.