Market News

Cattle, hog futures start the week lower

At the Chicago Mercantile Exchange, live and feeder cattle were sharply lower ahead of the week’s direct business.  August live cattle closed $1.60 lower at $186.97 and October lives closed $1.75 lower at $186.80.  August feeder cattle closed $3.27 lower at $256.42 and September feeders closed $3.52 lower at $256.07. 

Direct cash cattle trade activity was quiet Monday.  Showlists this week are mixed, higher in Kansas, Nebraska, and Colorado, but lower in Texas.  Bids and asking prices weren’t established.  Significant trade volume will likely be delayed until the back half of the week.

At the Oklahoma National Stockyards, feeder steers were steady to $5 lower.  Feeder heifers were $2 to $5 higher.  Steer and heifer calves were steady to $4 higher.  The USDA says demand was good and quality was average.  Receipts were up on the week and the year. Feeder supply included 51% steers and 65% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 700 to 731 pounds brought $262 to $275 and feeder steers 855 to 897 pounds brought $244.50 to $257.  Medium and Large 1 feeder heifers 605 to 642 pounds brought $258 to $283.50 and feeder heifers 753 to 788 pounds brought $223 to $251.75. 

Boxed beef closed higher and sharply higher with good demand for solid offerings.  Choice is $1.04 higher at $314.81 and Select closed $4.06 higher at $301.52.  The Choice/Select spread is $13.28.    Estimated cattle slaughter was 115,000 head – even on the week and down about 6,000 on the year.

Lean hog futures ended the day lower, pressured by technical selling. August lean hogs closed $2.02 lower at $91.45 and October lean hogs closed $3.37 lower at $74.82. 

Cash hogs closed higher with a very light negotiated run.  While processors were more aggressive in their procurement efforts and bid up, there wasn’t much movement Monday.  Demand for U.S. pork on the global market has been strong, helping provide some price support.  Supplies of market-ready hogs are ample and there is plenty of pork available as hog weights are still running well above year-ago levels. Barrows and gilts at the National Daily Direct closed $1.94 higher with a base range of $78 to $85 and a weighted average of $84.07; the Iowa/Minnesota and the Western Corn Belt had no comparison but a weighted average of $84.40.  Prices at the Eastern Corn Belt were not reported due to confidentiality

Butcher hog prices at the Midwest cash markets are $5 lower at $55. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $49 to $59.  Boars ranged from $18 to $28 and $8 to $15.

Pork values closed higher – up $1.61 at $106.78.  Bellies were sharply higher.  Loins, butts, picnics, and ribs were all higher. Hams were lower. Estimated hog slaughter was 482,000 head – up 29,000 on the week and up about 5,000 on the year.