Market News

Live cattle and lean hogs start the week higher

At the Chicago Mercantile Exchange, live cattle were mostly higher ahead of wide-spread direct business.  Feeder cattle were lower, pressured by the higher move in corn. October live cattle closed $.72 higher at $179.02 and December live cattle closed $.25 higher at $178.37.  September feeder cattle closed $.22 lower at $239.27 and October feeder cattle closed $.07 lower at $235.87.  

It was a typically quiet start to the week for direct cash cattle business.  Bids and asking prices didn’t surface Monday.  Showlists this week are mixed — somewhat higher in Texas, but slightly lower in Nebraska/Colorado, and lower in Kansas.  Significant trade volume will likely be delayed until the latter half of the week. 

At the Oklahoma National Stockyards, feeder cattle were lightly tested again.  Feeder steers were mostly steady to $2 lower, with the most decline in steers over 800 pounds.  Feeder heifers were unevenly steady. Steer and heifer calves were $3 to $6 lower.  The USDA says demand was moderate to good.  Extreme heat has continued and there were lighter receipts again this week.  Receipts were also down on the year. Feeder supply included 58% steers and 57% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 565 to 590 pounds brought $278 to $289 and feeder steers 654 to 690 pounds brought $257 to $284.  Medium and Large 1 feeder heifers 650 to 695 pounds brought $238 to $257 and feeder heifers 703 to 744 pounds brought $228 to $241.50.

Boxed beef closed lower with light demand for moderate offerings.  Choice was $1.90 lower at $315.55 and Select closed $.58 lower at $302.01.  Estimated cattle slaughter is 117,000 head – up 5,000 on the week and down about 5,000 on the year.  

Lean hogs ended the higher on oversold signals. October lean hogs closed $1.72 higher at $76.80 and December lean hogs closed $1.52 higher at $68.75.  

Cash hogs closed lower with very light negotiated purchases.  Processors appear to be easing into the week’s business, and aren’t aggressive in their procurement efforts.  Demand for U.S. pork on the global market is strong, and that has helped provide price support.  There continues to be some long-term domestic demand uncertainty, which does add pressure to prices.  Barrows and gilts at the National Daily Direct were $.28 lower with a base range of $82 to $83 and a weighted average of $82.72.  Prices at the Regional Direct Markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $69. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $51 to $63.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed lower – down $1.58 at $97.09. Bellies were sharply lower.  Hams and loins were higher.  Picnics, butts, and ribs were higher.    Estimated hog slaughter is 483,000 head – even on the week and up about 13,000 on the year.