Market News

Lean hog futures supported by higher cash business

At the Chicago Mercantile Exchange, live cattle took back most of yesterday’s losses in anticipation of strong export sales numbers tomorrow and spillover buying interest from today’s hog markets.  Feeder cattle were mostly lower on position squaring ahead of Friday’s Cattle on Feed report.  October live cattle closed $.30 higher at $111.47 and December live cattle closed $.67 higher at $116.65.  October feeder cattle closed $.37 higher at $152.52 and November feeder cattle closed $152.07.

Direct cash cattle trade is quiet with just a few scattered bids on the table.  Asking prices have been around $112 to $113 in the South and $178 to  $180 in the North.  It looks like significant business will be delayed until the latter part of the week.  Bids have been reported between $108 to $110 live and $173 dressed.

Boxed beef closed weak to lower on light to moderate demand and offerings.  Choice was down $.40 at $197.26 and Select closed $.76 lower at $189.09.

At the Hub City Livestock Auction in South Dakota, receipts were down slightly on the week.  Steer calves were mostly steady and lightweight heifer calves were mostly steady and heifer calves 550 to 600 pounds were $3.00 to $5.00 lower.  The USDA says demand was good for several strings, loads, and packages and an active market.  Calves had various preconditioning and calves were mostly moderate to moderate-plus flesh.  Feeder supply was 67 percent steers and 60 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 603 to 642 pounds were $162.50 to $177.50 and Medium and Large 1’s 958 to 991 were $146.00 to $158.00.  Feeder heifers, Medium and Large 1’s 459 to 498 were $166.00 to $170.00 and Medium and Large 1’s 606 to 645 pounds were $148.00 to $152.50.

Estimated cattle slaughter is 118,000 head, even with last week and up 4,000 on the year.

At the Chicago Mercantile Exchange, lean hogs bounced back from yesterday’s losses.  Expectations of bullish export activity lead to buying interest and continued steady to sharply higher cash business.  The USDA releases Livestock Slaughter numbers on Thursday.  December lean hogs closed $1.57 higher at $63.75 and February lean hogs closed $.85 higher at $68.00.

Cash hogs closed sharply higher.  The October rally continues.  With the continued strong packer margins and the number of market-ready hogs available – look for slaughter runs and market momentum to remain aggressive.

Barrows and gilts at the Iowa/Southern Minnesota closed $1.46 higher with a range of $53.00 to $63.75 and an average of $62.58; the Western Corn Belt closed $1.52 higher with a range of $53.00 to $63.57 and an average of $62.57; the Eastern Corn Belt had no comparison with a range of $59.00 to $63.00 and an average of $61.29; the National Daily Direct closed $1.78 higher with a range of $53.00 to $63.75 and an average of $62.13.

Butcher hogs at the Midwest cash markets are steady to $2.00 higher at $37.00 to $40.00.

At the Interior Missouri Direct, barrows and gilts are $5.00 to $8.00 higher at $52.00 to $54.00.  The USDA says both supply and demand are light to moderate.  Sows are $1.00 to $4.00 higher with sows under 500 pounds $24.00 to $30.00 and sows over 500 pounds $27.00 to $34.00.

At Illinois, slaughter sows are $2.00 higher at $26.00 to $36.00 with moderate to good demand for heavy offerings.  Boars under 300 pounds are $18.00 to $26.00 and boars over 300 pounds were $7.00 to $13.00.  Barrows and gilts are $1.00 higher at $37.00 to $42.00 with moderate to good demand for moderate offerings.

Pork closed $.93 lower at $73.88.  The majority of the primals closed lower.

Estimated hog slaughter is 464,00 head – up 1,000 from last week and up 25,000 on the year.