Market News

Cattle, hog futures move lower

At the Chicago Mercantile Exchange, live and feeder cattle were lower on profit-taking, ahead of the week’s direct business and Friday’s Cattle on Feed report. October live cattle closed $1.55 lower at $220.70 and December live cattle closed $1.80 lower at $223.35.  October feeder cattle closed $4.00 lower at $333.85 and November feeder cattle close $3.87 lower at $328.90. 

Direct cash cattle trade activity was quiet Tuesday.  Bids were at $224 live in the South and $342 to $350 dressed in the North.  Asking prices remained elusive. Show lists are higher in all major feeding areas as seasonal supplies are on the rise. Significant trade volume is likely going to hold out until sometime Thursday or Friday.

At the Oklahoma National Stockyards, feeder steers and steer calves were $15 to $25 higher.  Some un-weaned steers weighing less than 500 pounds were up to $20 higher.  Feeder heifers $10 to $15 higher and heifer calves were $15 to $20 higher.  The USDA says demand was good for feeder cattle, moderate to good for calves.  Quality was average with some attractive.  Receipts were up from the most recent sale, but down on the year.  Feeder supply included 59 percent steers with 58 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 650 to 699 pounds brought $350 to $388 and feeder steers 753 to 795 pounds brought $342 to $357.  Medium and Large 1 feeder heifers 601 to 643 pounds brought $341 to $383 and feeder heifers 658 to 697 pounds brought $334 to $355. 

Boxed beef closed higher with solid demand for moderate offerings.  Choice was $.77 higher at $376.08 and Select was $1.81 higher at $356.36. The Choice/Select spread is $19.72. Estimated cattle slaughter was 108,000, down 1,000 on the week and down more than 14,000 on the year.

Lean hog futures closed lower on technical selling and the weakness in pork values. October lean hogs closed $.52 lower at $79.07 and December lean hogs closed $1.60 lower at $69.65. 

Cash hogs closed higher with a solid negotiated run.  The cash hog market continues to struggle with consistency.  Processors had to get a little more aggressive in their procurement efforts Tuesday to move needed numbers.  The industry continues to monitor the availability of market-ready hogs and hog weights and it is starting to look ahead to next week’s Quarterly Hogs and Pigs report for additional data. The trade is also watching demand, both on the global market and domestically. Barrows and gilts at the National Daily Direct closed $1.76 higher with a base range of $83 to $88 and a weighted average of $84.58; the Iowa/Minnesota had no comparison but a weighted average of $83.60; the Western Corn Belt closed $.20 higher with a weighted average of $83.61.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $1 higher at $64. At Illinois, slaughter sows were steady with moderate demand for 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 lower, down $2.28 at $87.50.  Bellies and picnics were both sharply lower.  Loins, butts, and ribs were also lower.  Hams were sharply higher. Estimated hog slaughter was 488,000 head, up 10,000 on the week and about even on the year.