Market News

Cattle, hog futures mostly higher to start the week

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were higher ahead of the week’s direct business and support from the sharply higher boxed beef.  August live cattle closed $.37 higher at $219.25 and October live cattle closed $.35 higher at $215.87. 

It was a typically quiet day for direct cash cattle trade activity.  Showlists for the week are mixed, higher in Texas, somewhat higher in Nebraska/Colorado, but lower in Kansas.  Bids and asking prices have yet to be established.  Look for significant trade volume to develop in the latter half of the week.

At the close, at the Oklahoma National Stockyards, feeder steers and heifers were $5 to $10 higher.  Steer and heifer calves were lightly tested and mostly steady.  The USDA says demand was very good with and the market was active.  The recent heavy rains have made moving cattle more challenging. Receipts were down on the week and the year.  Feeder supply included 55 percent steers and 76 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 604 to 645 pounds brought $341 to $369, and feeder steers 850 to 894 pounds brought $292 to $308.50.  Medium and Large 1 feeder heifers 605 to 649 pounds brought $320 to $344, and feeder heifers 702 to 746 pounds brought $292.50 to $312. 

Boxed beef closed sharply higher on solid demand for fairly light offerings.  Choice is $2.17 higher at $367.25 and Select is $2.20 higher at $358.93.  The Choice/Select spread is $8.32. Estimated cattle slaughter was 115,000 head – even on the week and down more than 7,000 on the year.

Lean hog futures closed lean hogs closed mostly higher, optimistic about demand.  July lean hogs closed $.10 higher at $107.20 and August lean hogs closed $.70 higher at $110.10. 

Cash hogs were sharply higher with a light negotiated run. Processors had to get more aggressive in their procurement efforts Monday afternoon to move needed numbers.  Demand has been a crucial factor in the market.  The industry is optimistic the summer grilling season will continue to boost domestic demand and help provide some additional price support.  Global demand for U.S. pork has been steady, but there is ongoing uncertainty about the trade relationship with China, one of the largest buyers of US pork. Barrows and gilts at the National Daily Direct were $2.67 higher with a base range of $100 to $107 and a weighted average of $103.22; the Iowa/Minnesota closed $1.50 higher with a weighted average of $104.33; the Western Corn Belt closed $2.21 higher with a weighted average of $104.71. 

Butcher hog prices at the Midwest cash markets are steady at $72. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $49 to $61.  Barrows and gilts were steady with moderate demand for moderate offerings at $57 to $67.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed lower, down $1.22 at $110.29.  Hams were sharply lower.  Bellies, picnics, and loins were all about steady.  Ribs and butts were higher. Estimated hog slaughter was 480,000 head – up 17,000 on the week and up about 17,000 on the year.