Market News

Cattle futures higher, lean hogs closed lower

At the Chicago Mercantile Exchange, live and feeder cattle futures were sharply higher, supported by technical buying, the midday gains in boxed beef, and optimism about this week’s direct business. October live was up $2.57 at $222.25 and December was $2.92 higher at $225.15. October feeders were $5.35 higher at $337.85 and November was up $4.60 at $332.77.

Direct cash cattle trade is quiet with no trade developing. Show lists are higher in all major feeding states as seasonal supplies are increasing. Last week, Northern dressed cattle traded for mostly $350, which is $5 to $6 higher than the previous week’s weighted average. And Southern live cattle waited to trade until the week’s bitter end, but it was worth it, as Southern live cattle traded for mostly $226, which is $3 to $4 higher than the previous week’s weighted average.

At the Joplin Regional Stockyards in Missouri, compared to two weeks ago, feeder steers under 600 pounds sold $20 to $30 higher with heavier weights selling steady to $5 higher. Feeder heifers sold steady to $5 higher. Receipts were up on the week and year. Feeder supply included 61 percent steers and 73 percent of the offering was over 600 pounds. Medium and large 1 feeder steers 652 to 697 pounds brought an average price of $392.69. Medium and large 1 feeder heifers 765 to 790 pounds brought an average price of $306.99.

Boxed beef closed mixed. Choice was $.63 lower at $375.31.  Select was $1.42 higher at $345.55. The Choice/Select spread is $20.76.

Estimated cattle slaughter is 106,000, with no comparison for last week and down 3,000 on the year.

Lean hog futures were sharply lower, pressured by technical selling, in addition to inconsistent cash and wholesale trade. October was down $1.92 at $79.60 and December was $1.45 lower at $71.25.

Cash hogs closed lower with a light negotiated run. Processors were not as aggressive in their procurement efforts to start the week. The market has been inconsistent recently and the start to the week is no exception. The industry continues to monitor domestic and global demand. While it’s been strong in both areas recently, there are some long-term concerns. The industry is also monitoring the supplies of market-ready hogs and hog weights.

Barrows and gilts at the National Daily Direct were $2.56 lower with a base range of $74 to $86 with a weighted average price of $82.82; Iowa/Minnesota did not report due to confidentially reasons; Western Corn Belt was $.30 lower at $83.41; The Eastern Corn Belt did not report due to confidentiality reasons.

Butcher hog prices at the Midwest Cash Markets were higher at $63. At Illinois, slaughter sows were steady with moderate demand for light offerings at $43 to $55. Barrows and gilts were steady with moderate demand for moderate offerings at $55 to $65. Boards ranged from $22 to $32 and $10 to $13.

Pork values closed $.02 lower at $89.78. Loins, butts, picnics and ribs were higher while hams were lower and bellies sharply lower. Estimated hog slaughter is 492,000 with no comparison from last week and up 6,000 on the year.