Market News

Cattle, hog futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were higher on technical buying and supply implications following Friday’s Cattle on Feed report. October live cattle closed $5.02 higher at $220.95 and December live cattle closed $5.37 higher at $222.00.  October feeder cattle closed $6.75 higher at $330.25 and November feeder cattle closed $8.10 higher at $326.10. 

Direct cash cattle trade activity was quiet on Monday.  Bids and asking prices did not surface.  Showlists this week are mixed, lighter in Kansas and Nebraska, larger in Texas.  Look for the bulk of the week’s business to hold out until sometime Thursday or Friday.  As a reminder, deals last week were at $350 dressed in the North, fully steady with the previous week’s weighted average basis and live deals in the South were at $226, also fully steady with the prior week’s business. 

At the Joplin Regional Stockyards in Missouri, feeder steers weighing less than 600 pounds were $10 to $25 higher, while heavier weights were mostly steady.  Feeder heifers weighing less than 550 pounds were $5 to $25 higher, with heavier weighs selling from $10 lower to $8 higher.  The USDA says supply was moderate with good demand.  Receipts were down on the week and the year.  Feeder supply included 61 percent steers with 74 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 601 to 649 pounds brought $375 to $412 and feeder steers 901 to 930 pounds brought $310 to $326.50.  Medium and Large 1 feeder heifers 600 to 645 pounds brought $335 to $365 and feeder heifers 700 to 742 pounds brought $322 to $340. 

Boxed beef was sharply higher with solid demand for light offerings.  Choice was $4.41 higher at $376.35 and Select was $2.51 higher at $355.77.  The Choice/Select spread is $20.58. Estimated cattle slaughter was 105,000 head, up 2,000 on the week and down more than 4,000 on the year. 

Lean hog futures closed higher on short-covering and the higher midday move in pork. October lean hogs closed $.05 higher at $78.15 and December lean hogs closed $1.25 higher at $69.80. 

Cash hogs closed lower with a pretty light negotiated run. The cash hog market has struggled with consistency.  The industry will have its eyes on this week’s Quarterly Hogs and Pigs report from the USDA as it looks to gauge available supplies of market-ready hogs in relation to demand.  There have been some bright spots when it comes to demand in both global and domestic markets, but there are still lingering concerns about long-term strength. Barrows and gilts at the National Daily Direct closed $1.41 lower with a base range of $73 to $81.50 and a weighted average of $80.35; the Iowa/Minnesota and the Western Corn Belt both had no comparison but weighted average of $80.45.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sows were steady with moderate demand for light to 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 $1.93 at $88.91.  Bellies, loins, ribs, and hams were all up.  Butts were firm and picnics were lower. Estimated hog slaughter was 493,000 head, up 11,000 on the week and up about 8,000 on the year.