Market News

Hog, cattle futures higher on an oversold bounce

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher on an oversold bounce.  October live cattle closed $1.95 higher at $96.15 and December live cattle closed $2.05 higher at $101.22.  September feeder cattle closed $1.07 higher at $133.90 and October feeder cattle closed $1.22 higher at $131.50. 

Direct cash cattle trade activity is quiet.  There have been just a handful a bids noted at $100 live.  A few scattered bids were reported in parts of the North at $160 dressed.  Asking prices are just starting to surface in the North at $168 to $170 dressed, they’ve yet to be stated in the South.  Significant trade volume isn’t like to develop until midweek or later. 

At the Callaway Livestock Auction in Missouri, receipts were up from two weeks ago and up slightly on the year.  Compared to the most recent sale, the best test was on steers 500 to 650 pounds and heifers 500 to 600 pounds, both were mostly $10 to $12 lower.  A light test of 650 to 700-pound steers were $3 to $4 lower.  All other weights were too lightly tested, and all sold with a lower undertone.  The USDA says demand and supply were moderate.  Feeder supply included 52 percent steers and 68 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $141 to $149.25 and feeder steers 703 to 721 pounds brought $141.25 to $148.60.  Medium and large 1 feeder heifers 558 to 598 pounds brought $125 to $133.50 and feeder heifers 602 to 640 pounds brought $129.50 to $135.50. 

Boxed beef closed lower on light demand and moderate offerings.  Choice closed $1.57 lower at $225.38 and Select closed $.94 lower at $200.98.  Estimated cattle slaughter is 116,000 head – up 3,000 on the week and down 4,000 on the year. 

Lean hog futures closed mostly higher, contracts were oversold and due for a bounce.  The market found additional support from higher wholesale values during the session. October lean hogs closed $.12 higher at $62.72 and December lean hogs closed $1.82 higher at $61.77. 

Cash hogs closed lower with fairly strong negotiated purchase numbers.  The market remains under pressure from the uncertainty of the supply and demand picture.  While there is still hope demand will increase for US pork on the global market, it hasn’t happened yet.  And with heavy supplies of ready barrows and gilts and the large slaughter runs – there is a lot of pork being added to a saturated market.  Trade talks with China are planned for October but nothing is set in stone and until that happens – there’s not much, aside from a big increase in demand for US pork that will turn prices around. Barrows and gilts at the Iowa/Southern Minnesota closed $1.75 lower for a weighted average price of $48.92; the Western Corn Belt closed $1.68 lower for a weighted average of $48.95; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct is $1.72 lower with a base range of $45 to $50.50 for a weighted average of $48.93. 

Pork values closed steady – up $.08 at $71.99.  Ribs, hams, and loins were higher to sharply higher.  Butts were weak.  Picnics and bellies were lower.  Estimated hog slaughter is 485,000 head – up 12,000 on the week and 13,000 on the year.