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Hog futures supported by higher cash business

At the Chicago Mercantile Exchange, live cattle were lower and feeders were mixed waiting for the week’s direct business to develop.  August lives closed $.57 lower at $187.12 and October live cattle closed $.77 lower at $186.67.  August feeder cattle closed $.27 higher at $257.25 and September feeders closed $.15 higher at $257.10. 

Direct cash cattle trade activity was quiet again Wednesday.  Bids remain elusive.  Asking prices surfaced at $190 to $192 live in the South, while the North remained quiet.  Look for the bulk of the week’s business to hold out until sometime Thursday or Friday. 

At the OKC West Livestock Auction in Oklahoma, feeder steers were steady to $3 higher.  Feeder heifers were too lightly tested for a trend.  The USDA says demand was good for feeders.  Steer and heifer calves were sold $4 to $8 lower.  Demand overall was tempered by the triple digit temperatures.  Receipts were down on the week and up on the year.  Feeder supply included 79% steers and 87% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 750 to 781 pounds brought $259 to $269 and feeder steers 853 to 875 pounds brought $243.50 to $255.  Medium and Large 1 feeder heifers 660 to 695 pounds brought $252 to $259.50 and feeder heifers 751 to 793 pounds brought $238 to $251. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice was $.29 higher at $314.77 and Select closed $1.22 lower at $300.16.  The Choice/Select spread is $14.61. Estimated cattle slaughter was 122,000 head – even on the week and down a little more than 1,000 on the year.

Lean hog futures ended the day higher, supported by the sharply higher cash business during the session. August lean hogs closed $1.07 higher at $92.27 and October lean hogs closed $1.15 higher at $75.92. 

Cash hogs closed higher with a huge negotiated run. Packers came out aggressive in their procurement efforts Wednesday, bidding up to move needed numbers.  Demand has been strong on the global market and packers are doing what they can to keep chains moving.  Hog weights dropped nearly a pound this week, but are still well above year-ago levels.  Supplies of market-ready hogs are ample. Barrows and gilts at the National Daily Direct closed $1.08 higher with a base range of $78 to $87 and a weighted average of $85.76; the Iowa/Minnesota closed $.33 higher with a weighted average of $85.94; the Western Corn Belt closed $.33 higher with a weighted average of $85.83; the Eastern Corn Belt is $7.73 higher with a weighted average of $85.67.

Butcher hog prices at the Midwest cash markets are steady at $55. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $49 to $59.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed lower – down $1.18 at $105.60. Loins, butts, picnics, bellies, and hams were all lower.  Ribs were higher. Estimated hog slaughter was 481,000 head – up 2,000 on the week and up more than 6,000 on the year.

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