Market News

Cattle, hog future higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct cash business.  October live cattle closed $1 higher at $184.22 and December live cattle closed $.85 higher at $188.27.  October feeder cattle closed $2.30 higher at $261.45 and November feeders closed $2.12 higher at $262.75. 

Direct cash cattle trade activity started the week in its typical quiet fashion. Showlists are somewhat lower in Nebraska/Colorado and lower in Kansas and Texas.  Bids and asking prices didn’t surface.  It’s likely significant trade volume will be delayed until sometime midweek or later. 

At the Oklahoma National Stockyards, feeder steers were $1 to $4 higher and feeder heifers were mostly steady to $3 lower.  Steer calves were $1 to $3 lower and heifer calves were $2 to $5 lower.  The USDA says demand was good for feeder cattle and moderate for calves.  Quality was mostly plain to average.  Timely moisture and cooler temps are beneficial to farmers in the area.  Receipts were up from two weeks ago and on the year.  Feeder supply included 52% steers and 42% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 704 to 734 pounds brought $261 to $266 and feeder steers 766 to 795 pounds brought $248 to $255.75.  Medium and Large 1 feeder heifers 510 to 547 pounds brought $245 to $264 and feeder heifers 613 to 635 pounds brought $226 to $242. 

Boxed beef closed lower on light demand for solid offerings.  Choice was $2.79 lower at $310.11 and Select closed $.61 lower at $285.44.  The Choice/Select spread is $24.67.    Estimated cattle slaughter was 125,000 head – down 1,000 on the year. 

Lean hog futures ended the day higher, with pork values sharply higher at midday.  October lean hogs closed $1.02 higher at $82.55 and December lean hogs closed $.20 higher at $74.65. 

Cash hogs closed firm with a very light negotiated run. Processors have been very inconsistent.  Some days, they are getting more aggressive in their procurement efforts and biding up, and that was the case Monday as they had to work a little harder to move numbers.  The industry continues to watch demand, both on the global market and domestically.  There are concerns that domestic demand could slump as the summer grilling season winds down.  There’s already a lot of talk about what could happen in the upcoming Quarterly Hogs and Pigs report. Barrows and gilts at the National Daily Direct closed $.03 higher with a base range of $73 to $82 and a weighted average of $79.17; the Iowa/Minnesota closed $.09 higher with a weighted average of $79.63; the Western Corn Belt closed $.18 higher with a weighted average of $79.63; the Eastern Corn Belt had closed $.42 higher with a weighted average of $78.90. 

Butcher hog prices at the Midwest cash markets are steady at $60.  At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $40 to $52.  Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56.  Boars ranged from $25 to $32 and $10 to $15. 

Pork values closed higher – up $1.65 at $99.45.  Bellies, ribs, loins, hams, and butts were all higher.  Picnics were lower.  Estimated hog slaughter was 480,000 head – even on the year.