Market News

Cattle and hog contracts close firmer in Chicago

Chicago Mercantile Exchange live cattle contracts settled unchanged to 115 points higher. Contracts closed off of the day’s highs as traders waited for the feed lot trade to develop, spreaders bought October and sold the August and December contracts.  August once again failed to crack the 86.00 resistance level and settled 67 higher at 85.60; October was up 115 at 91.42. Boxed beef cutout values were weak to lower on fairly good demand and moderate to heavy offerings. Choice boxed beef was down 1.44 at 136.44, and select was .79 lower at 130.91.

Feeder cattle settled 10 to 92 higher on the meltdown in corn futures and spillover support from the live pit. August feeders finished 85 points higher at 103.90, and September was up 87 at 104.07.

Feeder cattle receipts at the Springfield, MO Livestock Marketing Center totaled 1612 head on Wednesday. Compared to last week steers and heifers trended steady with the exception of calves under 500 lbs 3.00 to 5.00 higher. Feeder steers medium and large 1 and 1-2 weighing 500-600 lbs traded from 99.00 to 112.00, 5 to 6 weight heifers brought 89.50 to 100.00 per hundredweight. 700 to 800 lb steers brought 93.50 to 100.00, 7 to 8 weight heifers at Springfield traded at 88.50 to 94.50.

Thursday cattle slaughter was estimated at 123,000 head, 3,000 less than last week and last year. Packer inquiry remained guarded on Thursday afternoon, but there were a few more bids on the table from 80 to 81 live and 128 to 130 dressed. Asking prices remain firm at 84 to 85, and 134 +. The higher close in the cattle futures no doubt is working to strengthen feedlot resolve.

Barrows and gilts at the terminals closed 1.00 to 2.000 higher from 34.00 to 44.00. The Missouri direct base carcass meat price closed 1.00 higher from 52.00 to 54.00. Iowa/Minnesota hogs closed .09 lower at 56.84 on a carcass basis, the West was up .79 at 57.60, and the East was .24 higher at 56.26. Hog slaughter was estimated at 405,000 head, 7,000 more than last week, but 15,000 less than last year. Slaughter for the first four days of the week is 1,567,000 head the same as last week. Packer margins are improving. Iowa/Minnesota hog weights last week 264.9 lbs, 1.7 lbs heavier than the previous week, and 4.4 lbs more than last year. Friday’s cash bids are predicted to be steady to higher.

Lean hogs settled 120 higher to 70 points lower. The front months were higher on bull spreading and improving fundamentals. The deferred months were pressured by cheaper corn and the specter of greater tonnage in 2010. August made a strong showing on its first day as the lead month ending 120 points higher at 65.22; October was up 137 at 60.47. Pork trading was slow, with moderate to good demand and light to moderate offerings. The lean carcass cutout was .59 higher at 63.97.

Pork bellies ended 20 to 200 points higher partly on the strength in the front month hogs. August was up 20 points at 60.50, and October ended at 62.05 up 200.