Market News

Lean hogs and nearby bellies take a pounding

Live cattle contracts settled 30 to 82 points lower on the Chicago Mercantile Exchange on Thursday. Traders expressed concern over the uncertainty in this week’s cash cattle market. Sharply lower lean hogs had a negative impact on live cattle futures contracts.  August settled 82 points lower at 83.20, and October was down 70 at 89.12. Boxed beef cutout values were steady to weak on moderate to heavy offerings. Choice beef ended .10 higher at 140.70; select was down .89 at 134.67

Feeder cattle settled 7 points higher to 25 lower on spillover pressure from the live pit, sell stops and August/October bear spreads. Lower corn values on the Chicago Board of trade appeared to have little impact on feeder contracts. August feeders settled 25 points lower at 101.10, and September was down 17 at 100.97.

Feeder cattle receipts at the Springfield Livestock Marketing Center in Missouri totaled 2080 head. Compared to last week steers and heifers were 1.00 to 2.00 lower. Feeder steers, medium and large 1 weighing 500 to 600 pounds traded from 101.00 to 113.50, 7 to 8 weights from 92.50 to 102.50. 500 to 600 pound heifers brought 90.00 to 102.50 and heifers from 700 to 800 pounds at 86.50 to 91.00 per hundredweight at Springfield.

Cattle slaughter was estimated at 123,000 head, 4,000 less than last week, and 2,000 under last year. Cattle trading and demand was, moderate in Nebraska on Thursday. Compared to last week, live sales were steady to 1.00 lower at mostly 82.00. Dressed sales were 1.00 to mostly 2.00 lower at 130.00. Live sales were reported in Iowa at 81.00 to 81.50, 1.00 to 1.50 lower, dressed sales were 1.00 to 2.00 lower from 129.00 to 130.00. The South remained quiet with bids from 80 to 81 with asking prices at 84 +.

Barrows and gilts at the terminals trended 1.00 to 2.00 lower from 30 to 35 on a live basis. The Missouri direct base carcass meat price closed steady to 1.00 lower from 45 to 48. Iowa/Minnesota barrows and gilts closed .42 lower at 49.61 on a carcass basis, the West was .53 lower at 49.67, and the East was down 1.31 at 47.82. Thursday’s hog slaughter was estimated at 428,000 head, 13,000 more than last week, and 2,000 greater than last year. Packers continue to secure plenty of hogs with lower bids, and they sense a need to do exactly that given the fact carcass values keep slipping lower and lower according to DTN’s John Harrington. Friday’s market is predicted to show continued weakness.

Lean hogs settled 172 to 297 points lower. The most significant losses were in the October and December 2009 contract months. Lower cash prices and poor product demand along with heavy slaughter continues to weigh on the lean hog futures. August was down 227 points at 51.07, and October was down 262 at 47.57. Pork trading was slow to moderate, with light demand and mostly moderate offerings. Pork carcass cutout value was down 2.23 at 54.64.

Pork bellies settled 70 to 300 points lower on spillover pressure from the lean pit that can’t seem to find a bottom. This pushed the August contract limit down at 54.75, and February was 70 points lower at 80.30.