Cattle futures sharply higher ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle were up on oversold signals, ahead of the week’s direct business. February live cattle closed $4.87 higher at $220.80 and April live cattle closed $4.87 higher at $222.42. January feeder cattle closed $8.80 higher at $329.87 and March feeder cattle closed $8.40 higher at $323.92.

Direct cash cattle trade activity was quiet again on Tuesday. Bids didn’t surface, but asking prices were floated in parts of Texas at $225 live. Showlists are mixed, higher in Kansas, nearly steady in Nebraska/Colorado, but lower in Texas. Significant trade volume isn’t expected until sometime Thursday or Friday.

At the Callway Livestock Center in Missouri, feeder steers 450 to 700 pounds and heifers 400 to 650 pounds were mostly $10 to $25 higher. The USDA says demand was good on a moderate supply. Quality overall was good and the market was active. Receipts were down slightly on the week and up slightly on the year. Feeder supply included 62 percent steers with 46 percent of the offering weighing more than 600 pounds. Medium and Large 1 feeder steers 653 to 690 pounds brought $343 to $361 and feeder steers 802 to 843 pounds brought $327.25 to $331.50. Medium and Large 1 feeder heifers 628 to 637 pounds brought $355 to $363.25 and feeder heifers 778 to 781 pounds brought $286 to $290.

Boxed beef closed sharply lower with light demand for moderate offerings. Choice was $4.17 lower at $364.72 and Select was $7.10 lower at $350.78. The Choice/Select spread was $13.94. Estimated cattle slaughter was 122,000 head, down 3,000 on the week and down nearly 5,000 on the year.

Lean hog futures ended the day lower as the market remains concerned about demand strength. February lean hogs closed $.12 lower at $80.17 and April lean hogs closed $.45 lower at $83.82.