Market News

Cash business, pork pressure hog futures

Chicago Mercantile Exchange live cattle futures were pressured by profit taking and the lower midday boxed beef ahead of this week’s widespread direct cash cattle business. This week’s Fed Cattle Exchange event was a non-starter in almost every sense. August was down $.57 at $109.47 and October was $.72 lower at $108.32.

Feeder cattle were sharply lower on profit taking and position squaring relative to the cash index. August was $3.10 lower at $142.25 and September was down $3.62 at $143.12.

Direct cash cattle markets were mostly quiet, aside from some fairly light business in the North at $175 to $177 dressed. Asking prices were $115 to $117 on the live basis and $180 to $182 dressed, with bids of $110 live and $175 to $178 dressed. Widespread business this week could wait until Friday’s USDA cattle on feed report. This week’s offering at the Fed Cattle Exchange was 1,184 head and none sold.

Boxed beef closed lower on light to moderate demand and heavy offerings. Choice was down $1.44 at $197.51 and Select was $.83 lower at $195.04. The estimated cattle slaughter of 115,000 head was down 1,000 on the week, but up 1,000 on the year.

At the Ozarks Regional Stockyards feeder cattle sale in Missouri, compared to the previous week, feeder steers and heifers were $2 to $6 lower. The USDA says demand was good, improving as the day went on, and the supply was moderate. 53% of the feeder offering were steers and 55% of the total feeder run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 500 to 600 pounds sold at $155 to $172 and Medium and Large 1 to 2 steers weighing 600 to 700 pounds brought $134 to $149. Medium and Large 1 feeder heifers weighing 500 to 600 pounds ranged from $138 to $149 and 600 to 700 pound feeders were reported at $132.50 to $143.

Lean hog futures were lower on the steady to lower cash during the session and the sharply lower midday pork, which included a more than $15 drop in the belly primal. Profit taking was also a factor, along with a lack of follow through buying after some attempts at higher trade. October was $1.75 lower at $68.77 and December was down $1.22 at $63.47.

Cash hogs were steady to lower. Buyers were able to lower the cost of live inventory, with help from the good processing margins and increasing market ready numbers. That seasonal increase in market ready numbers is really expected to get going around Labor Day. The average Iowa/Southern Minnesota hog weight for the week ending August 12th was 276.6 pounds, up 1.1 on the week and 2 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $.49 lower at $71 to $78 for a weighted average of $77.01, the Western Cornbelt was down $.47 at $71 to $78 with an average of $77.03, and the Eastern Cornbelt was $.78 lower at $74 to $77 for an average of $75.49. National direct business was down $.48 at $71 to $78 with an average of $76.58. Butcher hogs at the Midwest cash markets were steady at $50 to $55. Missouri direct butchers were steady to $2 lower at $69 to $71 on light to moderate supply and demand. Sows were mostly steady to $2 lower at $58 to $70. Illinois direct sows were steady at $58 to $72 with good demand for moderate to heavy offerings. Barrows and gilts were steady at $47 to $55 on moderate demand and offerings. Boars ranged from $10 to $38.

Pork closed $2.30 lower at $91.55. Loins and hams were lower, while bellies dropped $13.59. The estimated hog slaughter of 446,000 head was unchanged on the week and up 11,000 on the year.