Market News

Cattle, hog futures lower heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct business.  August lives closed $.30 lower at $186.45 and October lives closed $.37 lower at $185.75.  August feeder cattle closed $1.12 lower at $260.65 and September feeders closed $1.07 lower at $261.40. 

Direct cash cattle trade activity has been quiet.  Bids were elusive.  Asking prices were around $192 to $194 live in the South and $315+ dressed in the North. Buyers and sellers appear to be in a standoff and it looks like significant trade volume is going to hold out until sometime on Friday.

At the Winter Livestock Auction in Kansas, steer and heifer calves were not well tested.  Yearling steers and heifers were $3 to $6 higher.  The USDA says demand was good on a light supply. Receipts were down on the week and the year.  Feeder supply included 38% steers and 80% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 860 to 889 brought $258.50 to $259 and feeder steers 913 pounds brought $259.75.  Medium and Large 1 feeder heifers 634 pounds brought $289 and feeder heifers 760 to 779 pounds brought $240 to $257. 

Boxed beef closed mixed with moderate demand for moderate offerings.  Choice was $.48 higher at $323.33 and Select closed $.16 lower at $302.70.  The Choice/Select spread is $20.63.   Estimated cattle slaughter was 121,000 head – even on the week and down about 5,000 on the year.

Lean hog futures were pressured by the sharply lower pork values during the session, ahead of the Quarterly Inventory report. July lean hogs closed $.45 lower at $89.45 and August lean hogs closed $.87 lower at $88.10. 

Cash hogs closed higher with a light negotiated run.  Processors were a little more aggressive in their procurement efforts on Thursday and bid up to move needed numbers.  Demand for US pork on the global market has been strong, highlighted by an extraordinary export sales report from the USDA on Thursday.  The industry continues to monitor the availability of market-ready hogs and hog weights, which are running well above year-ago levels.   Barrows and gilts at the National Daily Direct closed $.39 higher with a base range of $82 to $93.50 and a weighted average of $89.03; the Iowa/Minnesota closed $1.59 higher with a weighted average of $90.25; the Western Corn Belt closed $1.31 higher with a weighted average of $90.25; the Eastern Corn Belt had no comparison but a weighted average of $85.92. 

Butcher hog prices at the Midwest cash markets were steady at $66. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $61 to $73.  Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62.  Boars ranged from $18 to $28 and $8 to $15.

Pork values closed lower – down $.62 at $94.90.  Ribs were sharply lower.  Bellies and butts were lower.  Picnics, hams, and loins were all higher. Estimated hog slaughter was 476,000 head – up 1,000 on the week and up about 21,000 on the year.