Market News

Cattle, hog futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were higher, supported by stronger boxed beef.  Waiting for direct business to develop. October live cattle closed $.67 higher at $179.27 and December lives closed $1.30 higher at $178.85.  October feeder cattle closed $1.57 higher at $239.32 and November feeders closed $1.37 higher at $236.62. 

Direct cash cattle trade activity was quiet Tuesday.  Bids and asking prices didn’t surface.  Showlists this week are mixed – higher in Nebraska/Colorado, but lower in Kansas and Texas.  Significant trade volume will likely hold out until the latter half of the week. 

In South Dakota last week, feeder steers were steady to $2 lower.  Heifers were not well compared.  The USDA says demand was moderate to good for yearling steers and heifers, especially for cattle coming off grass.  The decline in cattle futures has some proceeding cautiously, and prices have been impacted.  Receipts were up on the week and the year.  Feeder supply included 49% steers and 94% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 851 to 896 pounds brought $228 to $255 and feeder steers 906 to 946 pounds brought $221 to $244.  Medium and Large 1 feeder heifers 802 to 849 pounds brought $215 to $242.50 and feeder heifers 851 to 895 pounds brought $214 to $248. 

Boxed beef closed higher on good demand for moderate offerings.  Choice was up $1.33 at $310.67 and Select closed $4.29 higher at $300.11.  The Choice/Select spread is $10.56. Estimated cattle slaughter was 125,000 head – up 7,000 on the week and down about 3,500 on the year.

Lean hog futures ended the day higher, supported by higher pork values during the session.  October lean hogs closed $.30 higher at $82.52 and December lean hogs closed $1.02 higher at $73.80. 

Cash hogs closed sharply higher with a moderate negotiated run. Processors are starting the shortened holiday week more aggressive in their procurement efforts.  That could be good news for prices. Demand for U.S. pork on the global market has been strong, and that’s helping provide price support.  But domestic demand has been sluggish.  The industry is also watching available supplies of market-ready hogs and hog weights.  The calendar has turned to September and many industry experts will start looking ahead to the Quarterly Hogs and Pigs report which comes out later this month.   

Barrows and gilts at the National Daily Direct closed $2.26 higher with a base range of $76 to $80 and a weighted average of $78.90; the Iowa/Minnesota closed $2.03 higher with a weighted average of $79.01; the Western Corn Belt closed $2.22 higher with a weighted average of $79.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $6 lower at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $51 to $63.  Barrows and gilts were steady at $45 to $55.  Boars ranged from $18 to 428 and $8 to $15. 

Pork values closed higher – up $1.59 at $98.82. Hams, ribs, bellies, picnics, loins, and butts were all higher. Estimated hog slaughter was 484,000 head – up 5,000 on the week and up more than 11,000 on the year.