Market News

Lean hogs settled lower as buying momentum came to a screeching halt: June 22, 2009

Chicago Mercantile Exchange live cattle contracts settled 75 lower to 75 higher. The nearby contracts were higher supported by the strength in last week’s cash trade, but were curbed some by outside market losses. Deferred contracts were pressured by lower corn values on the Chicago Board of Trade. June was up .55 at 81.47, and August finished at 82.85 up 72. Boxed beef cutout values were generally steady on light to moderate demand and offerings. Choice boxes were .38 higher at 139.87, select was down .33 at 132.06.Feeder cattle closed 50 to 82 points higher on support from the friendly cattle on feed report on Friday, along with higher live contracts and losses in corn futures. August was up .82 at 98.92, and September closed .62 higher at 98.87.

Feeder cattle receipts at the Oklahoma National Stockyards totaled 9500 head. Compared to last week feeder cattle and calves opened steady to 2.00 higher. Early demand was moderate to good. Feeder steers medium and large 1 weighing 600 to 700 lbs traded at 99.00 to 105.00, and 6 to 7 weight heifers brought 94.50 to 97.50 per hundredweight.

Monday’s cattle slaughter was estimated at 129,000 head, 1,000 less than last week, but 4,000 more than last year. Formula totals for last week were larger in all areas especially Texas, and weekly totals were larger across the board. The new show lists appear larger in all states with the exception of Texas. Early asking prices according to private sources are around 84.00 to 85 in the South and 133.00 to 135.00 in the North.

Barrows and gilts at the terminals trended 1.00 lower to 1.00 higher from 31.50 to 39. The Missouri direct base carcass meat price was steady from 49.00 to 52.00. Iowa/Minnesota barrows and gilts trended .87 higher at 57.10 on a carcass basis, the West was up .78 at 57.41, and the East closed .26 lower at 54.27. Monday’s hog slaughter was estimates at 401,000 head, 9,000 less than last week, and 23,000 fewer than last week. High temperatures and humidity in the Midwest will mostly likely slow hog movement early in the week. Weight gains will also be affected by the summer heat. Tuesday’s market looks to be about steady.

Lean hogs settled unchanged to 125 points lower as the buying momentum seen late last week came to a screaming halt. Market bulls were unable to hold on to the gains posted on Friday as nearly all outside markets recorded losses. DTN says an additional concern of weak demand through the summer months was also seen in the market. July was down .97 at 60.45, and August was down .95 at 60.85. The lean carcass cutout was down .35 at 56.03. Pork trading was very slow, with light to moderate demand and offerings.

Pork bellies finished the session unchanged to 190 points higher. The upward tick in the market was attributed to be more associated with speculation of additional rebounding of the market following the weak dollar, rather than a fundamental change in the market. July was up 1.75 at 61.90, and August was 1.90 higher at 62.70.