Market News

Cattle futures up sharply Monday, hogs weak

Chicago Mercantile Exchange live and feeder cattle futures were higher, supported by oversold signals as traders watched the distribution of the show list. Feeders had additional support from the lower move in corn. October live was up $1.27 at $176.97 and December was $1.17 higher at $176.37. September feeders were $2.77 higher at $241.35 and October was up $3.10 at $234.47.

Direct cash cattle markets were quiet. It was a normal start to the week, with no bids or asking prices as buyers and sellers got a look at this week’s show list, which does look at least somewhat larger in all the major feeding areas. Widespread trade will wait until the back half of the week. Last week’s business was mostly $2 lower on the live basis in the south at $183 and generally down $5 dressed in the north at $293. Most of those sales were for nearby delivery, but a significant portion of the trade was for deferred delivery. Formula and trade volume totals were mixed, up in Texas and Kansas, down in Nebraska. The USDA’s most recent Cattle on Feed report showed a higher move in placements during July, implying increased market ready numbers starting later this year.

Last week in Missouri, the USDA says feeder steers and heifers weighing less than 700 pounds were $7 to $12 lower, while supplies weighing more than 700 pounds were steady to $5 lower. Receipts were up from the previous report and last year. 57% of the weekly feeder offering in Missouri weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds were reported at $235 to $305 and 700-to-800-pound steers sold at $235 to $285.75. Medium and Large 1 feeder heifers weighing 500 to 600 pounds ranged from $237 to $300 and 600-to-700-pound heifers brought $220 to $277.

Boxed beef closed lower with moderate movement. Choice was down $1.44 at $315.90 and Select beef was $.27 lower at $300.19 for a spread of $15.71. The estimated cattle slaughter of 116,000 head was down 1,000 on the week and 9,036 on the year.

Lean hog futures were down modestly on the lower midday move in pork. Losses were limited by traders waiting to see how the week’s cash business shakes out. October live was down $.15 at $80.40 and December was $.05 lower at $70.70.

Cash hog business was steady to lower with moderate closing negotiated numbers at the major direct markets. As is the case for most Mondays, buyer interest was limited as they got a look at the available ready supplies and weekend retail clearance numbers. Buyers could raise bids Tuesday, or continue to press the market, depending on demand signals, which at least Monday, did not look friendly ahead of Labor Day weekend.

National direct barrows and gilts closed $.59 lower with a base price range of $78 to $81 for a weighted average of $80.17, with Iowa/Southern Minnesota down $1.32 at $79.93 and the Western Corn Belt $1.27 lower at $79.92. The Eastern Corn Belt was not reported due to confidentiality. The butcher hog markets at Dorchester, Wisconsin and Garnavillo, Iowa were steady at $66. Illinois direct sows were steady at $53 to $65 on moderate demand for light to moderate offerings. Barrows and gilts were steady at $47 to $57 on moderate demand for moderate offerings. Boars ranged from $8 to $28.

Pork closed $4.07 lower at $94.98. Loins, butts, hams, and bellies were down sharply, canceling out modest gains in picnics and ribs. The estimated hog slaughter of 484,000 head was up 1,000 on the week and 6,614 on the year.