Market News
Lean hog contracts begin the week higher: July 6, 2009
Chicago Mercantile Exchange live cattle contracts settled mixed in light trade activity. The nearby’s were pressured the most by lower outside markets. August closed 45 points lower at 84.42, and October was down 40 at 89.82. Boxed beef cutout values were steady on light to moderate demand and offerings. Choice beef was down .18 at 137.71, and select was down .02 at 132.42.
Feeder cattle closed 35 to 100 points higher despite the weakness in the live pit. Support in the feeder pit came from lower corn values. August finished 35 points higher at 103.80, and September was up .82 at 102.95.
Feeder cattle receipts at the Oklahoma National Stockyards totaled 5,000 head. Feeder steers and heifers at mid-session were 1.00 to 2.00 higher. Stocker cattle and calves were not well tested, but a steady to higher undertone was noted. Demand was called very good for all classes even though some buying interest was not aggressive. Feeder steers, medium and large 1 weighing 550 to 600 lbs traded from 105.00 to 108.00. 5 to 6 weight heifers brought 99.00 to 103.50 per hundredweight.
Monday’s cattle slaughter was estimated at 121,000 head, 9,000 below last week, and 3,000 less than last year. Feedlot country was quiet with show list distribution now completed. The new offering is generally larger than last week, with the biggest increase evident in the South. Early asking prices are around 85 to 86 in the South, and 135 plus in the North.
Hog slaughter was estimated at 370,000 head, 38,000 less than last week, and 41,000 fewer than last year. Terminal barrows and gilts were fully steady from 35.00 to 40.00 on a live basis. The Missouri direct base carcass meat price was 1.00 to 3.00 higher from 51.00 to 54.00. Iowa/Minnesota barrows and gilts closed 2.72 higher on a carcass basis, the West was down .71 at 57.76 and the East was up 2.03 at 55.31. At least one packer was closed in observance of the holiday and that was reflected in the lower slaughter estimates. Some packers reportedly need hogs after going home for the holiday short on Friday, Tuesday’s market look steady to higher.
Lean hogs finished mostly 10 to 90 points higher as buying support returned to the market. Higher cash prices in the Iowa/Minnesota, Missouri and Eastern direct trade leant support to the market. If additional buying is seen in the market over the next couple of days associated with higher cash prices, the typical seasonal trend may be bucked for the time being according to DTN. July settled 67 higher at 60.65, and August was up .90 at 62.05.
Pork bellies settled 5 to 135 points higher with light buying support in the market to start the week. The upward tick is likely to be more associated with a bounce after Friday’s losses and supported by strong buying in the lean market. July closed 135 points higher at 55.20, August ended at 55.52 also up 135.
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