Market News

Hog futures higher to start the week

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were up ahead of the week’s direct business.  Feeders did have some support from the lower move in corn.  August live cattle closed $.45 lower at $209.37 and October live cattle closed $.25 lower at $207.10.  August feeder cattle closed $.35 higher at $302.80 and September feeder cattle closed $.40 higher at $302.62.

Direct cash cattle trade activity was quiet, typical for a Monday.  Showlists for the week are mixed, higher in Kansas, but lower in Nebraska/Colorado, and Texas.  Significant trade volume will likely be delayed until the latter half of the week.

At mid-session, at the Oklahoma National Stockyards, feeder cattle and calves were mostly steady. Unweaned calves were $5 to $10 lower.  The USDA says demand was moderate to good, but there was limited demand for short or unweaned calves.  Receipts were up on the week and the year.  Feeder supply included 48 percent steers and 65 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 602 to 647 pounds brought $344 to $382 and feeder steers 802 to 847 pounds brought $299 to $309.  Medium and Large 1 feeder heifers, unweaned, 631 to 639 pounds brought $313 to $315.50 and feeder heifers 702 to 739 pounds brought $292.50 to $305.50.

Boxed beef closed mixed with light to moderate demand for fairly light offerings.  Choice was $.28 lower at $390.22 and Select closed $6.15 higher at $383.10.  The Choice/Select spread narrowed to $7.12. Estimated cattle slaughter was 111,000 head – up 8,000 on the week and down more than 2,000 on the year.

Lean hog futures closed higher, with pork up during the session.  July lean hogs closed $.67 higher at $113.45 and August lean hogs closed $.60 higher at $113.05.

Cash hogs closed lower with a very light negotiated run.  Processors were not very aggressive in their procurement efforts to start off the week.   Demand for U.S. pork has been strong overall, both on the global market and domestically.  But, when it comes to global customers, China remains the wild card.  The industry is looking ahead to this week’s Quarterly Hogs and Pigs report from the USDA and continues to monitor available supplies of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $1.11 lower with a base range of $104 to $112 and a weighted average of $109.35 and the Western Corn Belt closed $1.83 lower with a weighted average of $109.91.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are $2 lower at $74. At Illinois, slaughter sow prices were $3 higher with moderate demand for light offerings at $57 to $69.  Barrows and gilts were $2 higher with moderate demand for moderate offerings at $65 to $75.  Boars ranged from $25 to $35 and $18 to $25.

Pork values closed higher, up $.64 at $122.78.  Bellies were sharply higher, and hams were higher.  Ribs, loins, butts, and picnics were sharply lower to weak.  Estimated hog slaughter was 465,000 head – down 13,000 on the week and up less than 1,000 on the year.