Market News

Supply concerns pressure pork prices

At the Chicago Mercantile Exchange, cattle futures closed mostly higher in a choppy trading session ahead of today’s Cold Storage report.  The numbers were fairly neutral to cattle.  Traders will look ahead to Friday’s Cattle on Feed report and the market will likely be chopping as it finishes up positioning ahead of its release.  The slow cash market is also failing to provide any direction.  June live cattle closed $.02 lower at $104.90 and August live cattle closed $.02 higher at $100.65.  May feeder cattle closed $.02 higher at $133.95 and August feeder cattle closed $.22 higher at $140.72.

It’s was another quiet day for direct cash cattle trade and we’re waiting on the first rounds of bids and asking prices to appear.  Significant trade volume isn’t likely to pop up until Wednesday or Thursday.  BUT with the long holiday weekend – it wouldn’t be a surprise if this week’s trade would be completed by late Thursday.

At the Tri-State livestock auction in Nebraska, receipts were down slightly on the year.  Heavier weight steers were steady.  The USDA says demand was good for the cattle offered.  Feeder supply included 84 percent steers and 78 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 799 pounds were $143.10 and feeder steers 968 pounds were $128.00.  Medium and Large 1 feeder heifers 452 to 499 pounds were $160.00 to $171.00 and feeder heifers 768 pounds were $128.50.

Boxed beef closed lower on light to moderate demand and moderate offerings.  Choice ended the day $1.47 lower at $229.35 and Select down $1.66 at $205.86.  The Choice/Select spread is $23.49.  Estimated cattle slaughter is 119,000 head – even with last week and even on the year.

Lean hog futures ended the day lower on pressure from supply concerns.  Wholesale pork values were not supportive at midday and today’s Cold Storage report showed pork belly stocks up 93 percent from year ago levels.  Contracts are still at a premium to cash.  Exports have fallen behind – and that’s adding product to the market.  June lean hogs closed $.87 lower at $73.12 and July lean hogs closed $1.72 lower at $75.12.

Cash hogs closed higher.  The trade continues to watch the availability of market-ready numbers.  Supply is still a concern, especially with demand uncertainties.  Keep an eye on this week’s kill totals.  Should the seasonal slow-down in slaughter numbers head into full swing, it will likely provide at least some price support to producers.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.10 higher with a range of $59.00 to $65.00 with a weighted average of $64.71; the Western Corn Belt closed $1.03 higher with a range of $59.00 to $65.00 and a weighted average of $64.62; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct was unchanged with a range of $59.00 to $65.16 and a weighted average of $64.78.

Butcher hogs at the Midwest cash markets are steady at the Zumbrota, Minnesota market at $40.00.  The markets in Wisconsin and Iowa are closed this week.  At the Interior Missouri Direct, barrows and gilts are $1.00 to $2.00 higher at $54.00 to $58.00 on light to moderate trade.  Sows are steady to $2.00 lower at $28.00 to $41.00.  At Illinois, slaughter sow receipts are down on the week and the year.  Sows are $1.00 lower at $30.00 to $42.00 with moderate demand for heavy offerings.  Barrows and gilt prices are steady at $37.00 to $46.00 with moderate demand for moderate offerings.

Pork values closed steady – down $.04 at $76.14.  The primals were mixed with the loin, butts, ribs, and bellies closing higher. Estimated hog slaughter is 458,000 head – down 3,000 on the week and up 18,000 on the year.