Market News

Cattle, hog futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were up modestly on an oversold bounce ahead of the week’s direct business. October live cattle closed $.95 higher at $212.67 and December live cattle closed $.85 higher at $214.57.  September feeder cattle closed $.55 higher at $321.45 and October feeder cattle closed $.50 higher at $317.02. 

Direct cash cattle trade was quiet, typical for a Monday.  Showlists this week are lower across all major feeding areas.  Bids and asking prices have yet to surface.  Significant trade volume could hold out until late in the week. 

At the Joplin Regional Stockyards in Missouri, feeder steers weighing less than 800 pounds sold $10 to $15 lower and steers weighing more than 800 pounds were $10 lower to $2 higher.  Feeder heifers sold from $5 lower to $3 higher.  The USDA says supply was light with moderate demand.  Receipts were down on the week.  Feeder supply included 65 percent steers with 80 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 804 to 828 pounds brought $331 to $337 and feeder steers 989 to 994 pounds brought $294 to $297.  Medium and Large 1 feeder heifers 609 to 643 pounds brought $335 to $360 and feeder heifers 866 pounds brought $295. 

Boxed beef closed lower and sharply lower on light demand for heavy offerings.  Choice was down $.41 at $375.82 and Select was $2.59 lower at $358.49.  The Choice/Select spread was $17.33. Estimated cattle slaughter was 104,000 head, up 6,000 on the week. 

Lean hog futures closed higher on oversold signals and the higher midday move in pork. October lean hogs closed $1.77 higher at $83.67 and December lean hogs closed $1.85 higher at $74.15. 

Cash hogs closed lower with a fairly light negotiated run.  The cash hog market has struggled to find consistent direction.  Processors have leverage and have been able to move needed numbers without having to get too aggressive in their procurement efforts.  Demand has had some bright spots in both global and domestic markets, but there are lingering concerns about long-term strength.  The industry is also monitoring the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct were $.84 lower with a base range of $86 to $89 with a weighted average of $88.73.  Prices at the Regional Direct Markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are at $64. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $43 to $55.  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 higher, up $1.61 at $97.67.  Bellies, ribs, loins, and picnics were all sharply higher.  Hams and butts were down. Estimated hog slaughter was 476,000 head, up 7,000 on the year.