Cattle futures higher, lean hogs mixed

At the Chicago Mercantile Exchange, live and feeder cattle futures were higher, oversold, and with at least some optimistic about this week’s direct cattle business. The USDA’s Cattle on Feed report is out this Friday with the semi-annual inventory report scheduled for next Friday. February live was up $.22 at $232.37 and April was $.60 higher at $234.57. March feeders were $1.22 higher at $357.67 and April was up $1.55 at $356.45.

Cash cattle country was quiet , with bids and asking prices were not established. Significant trade volume will likely be delayed until the second half of the week.

At the Tina Livestock Market Cattle Auction in Missouri, compared to last week, feeder steers traded unevenly steady with 6 weight steers trading as much as $15 higher. Feeder heifers sold firm to $15 higher with a very nice offering of feeder calves with lots of quality and good demand. Feeder supply included 67 percent steers with 49 percent of the offering over 600 pounds. Medium and large 1 feeder steers 651 to 680 pounds brought $390 to $443 with an average price of $421.75. Medium and large 1 feeder heifers 581 to 598 pounds brought $380 to $411 with an average price of $398.85.

Boxed beef closed mixed. Choice was $.43 higher at $364.76, and Select was $.49 lower at $359.84. The Choice/Select spread is $4.92.

Estimated cattle slaughter is 114,000, down 7,000 on the week and year.

Lean hog futures were mixed on spread trade and the firm midday pork, with the USDA’s monthly cold storage update out Friday. February was $.42 lower at $87.85 and April was down $.02 at $95.17.

Cash hogs closed with a light negotiated run. The cash hog market has yet to gain much traction, with processors maintaining the upper hand. Supplies of market-ready hogs remain ample, and rising weights are adding to overall pork availability. The industry is also keeping a close eye on demand. While there have been some encouraging signs early in the year, uncertainty continues to cloud the longer-term outlook.