Market News

Cattle futures close higher, lean hogs mixed

At the Chicago Mercantile Exchange, live and feeder cattle futures were sharply higher on technical buying, with feeders see additional support from the losses in corn. October live cattle was up $2.15 at $212.92 and December was $2.22 higher at $214.80. September feeder cattle were $3.45 higher at $322.45 and October was up $3.82 at $318.07.

Direct cash cattle trade was quiet. A few bids were on the table at $220 live in Nebraska, but otherwise, the major feeding areas have been at a standstill for most of week. Trade has been very limited this week, mainly at $345 dressed in the north, $10 lower than last week’s weighted average. Buyers want to improve their margins, while sellers are not enthusiastic about another week of losses.

At the Hub City Livestock Auction in Aberdeen, South Dakota, compared to last week, best test on steers 1050 to 1099 pounds $6 to $12 lower and best test on heifers 900 to 949 pounds $7 to $8 lower on a narrow comparison. The USDA says there was a moderate to active market. Receipts were up on the week and year. Feeder supply included 54 percent steers and the entire offering was over 600 pounds. Medium and large 1 feeder steers 953 to 998 pounds brought $301.75 to $320.75 with an average price of $308.54. Medium and large 1 feeder heifers 917 to 935 pounds brought $288.50 to $302.50 with an average price of $294.41.

Boxed beef was sharply lower. Choice was $3.77 lower at $381.36. Choice closed $3.49 lower at $359.19. The Choice/Select spread is $22.17.

Estimated cattle slaughter is 105,000 head, up 5,000 on the week, but down 14,000 on the week.

Lean hog futures were mixed, mostly modestly higher on spread trade and technical buying. October was down $.27 at $80.62 and December was up $.22 at $71.20.

Cash hogs were steady to lower with moderate closing negotiated movement at the major direct markets. Processors have likely met their procurement efforts earlier in the week. There are some bright spots with demand but long-term concerns linger. The market continues to monitor the availability of market ready supplies and hog weights.  

Barrows and gilts at the National Daily Direct were down $.99 with a weighted average of $89.76, Iowa/Southern Minnesota was down $.98 at $89.74, and the Western Corn Belt was $1.07 lower at $89.71.

Butcher hog prices at the Midwest cash markets were $2 lower at $64. At Illinois, slaughter sows were steady with moderate demand for moderate offerings. Barrows and gilts were steady with moderate demand for moderate offerings at $55 to $65. Boars ranged from $22 to $32 and $10 to $13.

Pork values. closed $1.75 lower at $93.80. Loins, butts, picnics, ribs, and bellies were all down.

Estimated hog slaughter is 486,000, up 44,00o on the week, but down 1,000 on the year.