Market News

Cattle, hog futures under pressure

At the Chicago Mercantile Exchange, live and feeder cattle futures were lower on profit taking and the midday decline in beef, with traders waiting for the week’s direct business to get defined. December live was down $.32 at $223.77 and February was $.62 lower at $226.55. November feeders were $2.47 lower at $335.80 and January was down $1.42 at $330.40.

Direct cash cattle trade was quiet. Asking prices were noted in Nebraska at $228 to $230 live and $350 dressed. But otherwise, the fed cash cattle market still hasn’t seen any trade develop and bids surface at this point. Trade will likely be delayed until Thursday, if not Friday.

At the West Point Livestock Auction in Nebraska, compared to the last sale, feeder heifers from 750 to 850 pounds traded $2 to $10 higher. The USDA says demand was light to moderate. Receipts were down on the week and year. Feeder supply included 27 percent steers and 80 percent of the offering was over 600 pounds. Medium and large 1 feeder steers 500 to 548 pounds brought $419 to $437.50 with an average price of $431.06. Medium and large 1 feeder heifers 767 to 796 pounds brought $331.50 to $343 with an average price of $338.35.

Boxed beef cutout values closed sharply lower. Choice was $3.31 lower at $375.62, and Select was $2.13 lower at $354.21. The Choice/Select spread is $21.41.

Estimated cattle slaughter was 108,000 head, up 10,000 on the week, but down 9,000 on the year.

Lean hog futures were pressured by the cash and wholesale business during the session. Additionally, most contracts continue to look technically weak. December was down $1.27 at $69.10 and February was $1.40 lower at $69.92.

Cash hogs closed sharply lower. It’s been a rough start to the week for the market. Processors continue to have leverage and are moving their pace and price for back-to-back days partly due to the ample supply of market ready hogs.

Barrows and gilts at the National Daily Direct were $3.30 lower with a base range of $69 to $75.50 with a weighted average price of $72.44; Iowa/Southern Minnesota was $2.91 lower with a weighted average price of $72.71; Western Cornbelt was $3.03 lower with a weighted average price of $72.71.

Butcher hog prices at the Midwest cash markets were steady at $60. At Illinois, slaughter sows were steady with moderate demand for moderate offerings form $45 to $57. Barrows and gilts pries were steady with moderate demand for moderate offerings at $53 to $63. Boars ranged from $25 to $35 and $15 to $20.

Pork values closed $2.13 lower at $81.71. Bellies were sharply lower and loins, picnics, ribs and hams were lower. Butts were higher.

Estimated hog slaughter was 495,000 head, up 16,000 on the week and 11,000 on the year.