Market News

Hog futures contracts suffer triple digit losses

Chicago Mercantile Exchange live cattle contracts settled 12 to 120 points higher with the exception of the spot month down 25. Spreading out of the back months into August was the main feature of the Monday session. The deferred issues received support from sharply higher corn futures on the Chicago Board of Trade. August finished 25 points lower at 84.45, and October was up 12 at 90.32. Boxed beef cutout values were firm to higher on light to moderate demand and offerings. Choice boxed beef was up 1.17 at 142.81, and select was up .58 at 136.32.

Feeder cattle settled 5 to 57 points lower following the sharp gains in the grain markets as well as expectations that placements may have increased through the month of July.  August ended 35 points lower at 102.00, and September was down 57 at 101.97.

Feeder cattle receipts at the Oklahoma National Stockyards totaled 8200 head on Monday. At midsession feeder steers and heifers were 1.00 higher. Steer and heifer calves were 1.00 to 2.00 higher. Demand was very good for feeders and calves. Feeder steers medium and large 1 weighing 500 to 600 pounds traded from 105.75 to 114.00, 5 to 6 weight heifers brought 98.00 to 107.25 per hundredweight.

Monday’s cattle slaughter was estimated at 126,000 head, 1,000 more than last week and last year. Total trade volume totals in the three major feeding states were greater last week. The new show lists are mixed, larger in Nebraska and Colorado, smaller in Kansas, and about unchanged in Texas. Early asking prices are around 84 to 85 in the South and 134 to 135 in the North.

Barrows and gilts at the terminals were lightly tested from 32.00 to 38.00, steady to .50 lower. Missouri direct base carcass meat price closed steady to 2.00 lower from 49.00 to 50.00. Iowa/Minnesota hogs settled .94 lower at 51.69 on a carcass basis, the West was down 1.00 at 51.71, and the East closed at 51.48 down .87.  Hog slaughter was estimated at 316,000 head, 102,000 less than last week, and 62,000 head smaller than last year. Three plants were closed for a floater holiday and three others were dark due to a reduced summer slaughter schedule. Tuesday’s market is expected to see continued weak to lower prices.

Lean hogs settled sharply lower with the upward move on Friday just an end of the month positioning move. The weakness in pork demand as well as light packer activity on Monday continued to erode trader interest in the market. August settled 107 points lower at 54.95, and October closed 185 lower at 52.05. Pork trading was slow to moderate, with light to moderate demand and mostly moderate offerings. The pork carcass cutout value was down 1.01 at 58.40.

Pork bellies finished the session 25 to 50 points lower on moderate selling pressure following the continued slide in the lean hog market. Even though a new month is on the books, the overall tone of the hog market remains weak, leaving belly trade to follow the selling pressure. August ended 50 points lower at 61.75, and February was down 25 at 81.00.