Market News

Cattle, hog futures move higher

At the Chicago Mercantile Exchange, live and feeder cattle were higher waiting for direct business to develop.  October lives closed $1.37 higher at $182.12 and December lives closed $1.30 higher at $181.60.  September feeders closed $2.17 higher at $244.35 and October feeders closed $2.17 higher at $242.10. 

Direct cash cattle trade activity was quiet again Wednesday.  Bids remain elusive.  Asking prices were around $187 to $188 live in the South, but still weren’t established in the North.  Significant trade volume will likely be delayed until sometime Thursday or Friday.

At the Ozarks Regional Stockyards in Missouri, feeder steers and heifers were $2 to $4 higher.  Steer and heifer calves under 700 pounds sold $4 to $8 higher with spots of $12 higher.  The USDA says demand was good on a moderate supply.  Cooler temperatures and improved futures markets helped sale barn activity return to more normal levels.  Quality was average and there were several load lots in the offerings.  Receipts were up on the year.  Feeder supply included 58% steers and 53% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 703 to 733 pounds brought $250 to $269 and feeder steers 750 to 784 pounds brought $242.50 to $260.  Medium and Large 1 feeder heifers 603 to 648 pounds brought $225 to $240 and feeder heifers 756 to 776 pounds brought $218 to $228. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was $2.05 lower at $314.88 and Select closed $.11 lower at $300.50.  The Choice/Select spread is $14.38. Estimated cattle slaughter was 122,000 head – even on the week and down about 500 on the year.

Lean hog futures ended the day higher, supported by cash and wholesale business during the session.  October lean hogs closed $3.07 higher at $75.92 and December lean hogs closed $2.50 higher at $67.25. 

Cash hogs closed higher with a moderate negotiated run.  Another solid day for the cash hog market.  Processors were a little more aggressive in their procurement efforts to move needed numbers.  Prices the last couple of days have reflected that.  Demand is crucial to the industry’s success and U.S. pork remains popular on the global market, helping provide price support.  Supplies of market-ready hogs are ample.  Hog weights continue to pull back over the summer months, this week down to 281 pounds, that’s down more than half a pound from last week, but still nearly 4 pounds above year-ago levels. Barrows and gilts at the National Daily Direct were $1.26 higher with a base range of $79 to $86 and a weighted average of $84.43; the Iowa/Minnesota closed $.59 higher with a weighted average of $83.83; the Western Corn Belt closed $1.24 higher with a weighted average of $84.55.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are $3 higher in Dorchester, WI at $69 and steady in Garnavillo, Iowa at $69. At Illinois, slaughter sow prices were $3 higher with moderate demand for moderate offerings at $51 to $63.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $18 to $28 and $8 to $15.

Pork values closed lower – down $1.02 at $99.31. Loins, hams, and butts were all lower.  Ribs and bellies were higher.  Picnics were about steady. Estimated hog slaughter was 481,000 head – even on the week and up about 11,000 on the year.