Market News

Hog, cattle futures higher on expectations of demand increases

At the Chicago Mercantile Exchange, live cattle futures ended the day higher on the positive trade news with Mexico, lower steer weights, and while the cash trade was lower last week, it performed better than expected.  Feeder cattle were higher on the same factors.  June live cattle closed $2.77 higher at $109.70 and August live cattle closed $3.00 higher at $106.30.  August feeder cattle closed $2.57 higher at $139.82 and September feeder cattle closed $2.37 higher at $139.72. 

Direct cash cattle trade activity is off to a slow start.  The majority of today’s business in the collection and evaluation of new showlists.  While inquiries are limited, activity is expected to improve throughout the week.  Last week saw several days of light business with deals mostly at $113 to $114 live and $183 to $184 dressed, all of which were below the prior week’s weighted averages. 

At Midsession at the Oklahoma National Stockyards, receipts are down on the week and up on the year.  Compared to the last sale, feeder steers 600 to 700 pounds were trading with a lower undertone on a lighter test, with heavier weights $2 to $7 higher.  Feeder heifers were $3 to $8 higher.  Steer calves 500 to 600 pounds were steady to $5 higher and light weights were not well tested.  The USDA says demand was good with active bidding.  Feeder supply included 60 percent steers and 72 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 558 to 586 pounds brought $151 to $163 and feeder steers 801 to 840 pounds brought $125 to $136.50.  Medium and Large 1 feeder heifers 603 to 638 pounds brought $126 to $136 and feeder heifers 651 to 698 pounds brought $125 to $132.75. 

Boxed beef cutout values closed mixed – weak on Choice and higher on Select – on moderate demand and light offerings.  Choice closed $.65 lower at $221.66 and Select closed $1.87 higher at $208.79.  The Choice/Select spread closed at $12.87.

Estimated cattle slaughter is 121,000 head – even on the week and up 3,000 on the year. 

Lean hog futures closed higher on optimism that demand will increase in coming weeks as progress has been made with Mexico.  Wholesale values during the session were also supportive.  July lean hogs closed $2.85 higher at $86.20 and August lean hogs closed $2.22 higher at $84.85. 

Cash hogs closed weak with light to moderate negotiated purchase totals.  Supply and demand remain the big story in the cash hog markets.  There was progress reported over the weekend with Mexico and the market remains hopeful demand will start to increase sooner rather than later.  With the continued large slaughter runs and the additional pork coming online – heavy supplies continue to weigh on the market.  China remains the wild card.  The market is optimistic the US pork sector will see an increase in demand as China has to turn to the global market to meet its pork and protein needs, but trade talks haven’t made any progress recently. 

Barrows and gilts at the National Daily Direct closed $.62 lower with a base range of $67 to $76.50 for a weighted average of $75.27.  Prices at the major direct markets were not reported due to confidentiality. 

Butcher hogs at the Midwest cash markets are steady to $3 lower at $50 to $55.

Illinois direct sows are weak at $27 to $44 on light demand for light to moderate offerings. Barrows and gilts are weak at $48 to $54 on moderate demand and offerings. Boars range from $10 to $25.Pork values closed

Pork values ended the day firm – up $.98 at $84.06.  Ribs, picnics, and hams all closed higher to sharply higher.  Loins closed rim.  Butts and bellies ended the day weak. 

Estimated hog slaughter is 477,000 head – up 10,000 on the week and 33,000 on the year.