Market News

Cash hogs close mixed as buyers watch demand signals

Chicago Mercantile Exchange live cattle futures were mostly higher and feeders were up, preparing for this week’s direct cash cattle business. April live was down $.22 at $187.32 and June was up $.12 at $182.95. March feeders were $.35 higher at $251.37 and April was up $1.80 at $255.35.

Cash cattle country was very quiet on Monday. Bids and asking prices were not established. Significant trade volume will likely be delayed until Wednesday or later. Last week, Northern dressed deals were marked at mostly $287 to $288, steady to $1 below the previous week’s business.  Southern live deals were at mostly $180, $2 lower than the prior week’s weighted averages.

According to the Oklahoma Weekly Cattle Auction Summary, feeder steers and heifers were mostly steady across the state last week. USDA says demand was moderate to good cattle future took a dive midweek. Steers calves sold steady to $4 higher, heifer calves were $2 to $4 higher. Medium and Large 1 feeder steers 750 to 799 pounds brought $225 to $248. Medium and Large 1 feeder heifers 750 to 792 pounds sold for $202 to $225.85.

Boxed beef cutout values closed steady to higher with Choice up $.28 at $297.37 and Select up $.42 at $287.82. The Choice/Select spread was $9.55.

Estimated cattle slaughter was 125,000 head – unchanged on the week and down nearly 1,000 on the year.

Lean hog futures were modestly higher on short covering and demand expectations. April was up $.45 at 485.67 and June was $.42 higher at $98.17.

Cash hogs were mixed, mostly steady to modestly higher, with light closing negotiated numbers for the major direct markets. After a quiet start to the week, buyers are taking a look at the available near-term market ready numbers while also watching demand signals. Given the slow business over the last couple of days and the pattern of business in recent weeks, there’s a good chance the market will see higher prices and stronger movement Wednesday. Export demand continues to be solid and domestic demand has generally held up well, despite the ongoing uncertainties about the full effects of California’s Proposition 12.

Barrows and gilts at the National Daily Direct were up $.82 with a base range of $65 to $73.50 and weighted average price of $70.25. The Iowa/Minnesota was up $.12 with a weighted average price of $69.87. The Western Corn Belt was $.10 lower with a weighted average price of $69.48. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs at the Midwest cash markets are trending steady at $50; slaughter sows are mostly steady at $39 to $42; boars are marked at $14. At Illinois, slaughter sows were steady at $38 to $50 and boars were marked at $8 to $25.

Pork values closed lower – down $1.34 at $92.44.

Estimated hog slaughter was 490,000 head – up 4,000 on the week and up nearly 8,000 on the year.