Market News

Hog futures up on midday pork

At the Chicago Mercantile Exchange, cattle futures ended the day lower on the lack of any supportive fundamentals and technical selling.  August live cattle closed $1.05 lower at $107.20 and October contracts closed $1.10 lower at $108.15.  August feeder cattle closed $1.25 lower at $148.65 and September contracts closed $1.07 at $148.45.

Direct cash cattle trade is quiet today – which is typical for a Monday.  This week’s showlists look to be generally larger, especially in the South.  Nebraska is the only state showing a smaller offering of steers and heifers.  Significant trade volume will likely be delayed until Thursday or Friday.

At the Oklahoma National Stockyards, receipts are up on the week and the year.  Feeder steers and heifers are $1 to $3 lower, steer and heifer calves are $1 lower on a limited test.  The USDA says demand is moderate to good and the quality is plain to average.  Feeder supply includes 61 percent steers and 63 percent of the offering is over 600 pounds.  Prices for Medium and Large 1 feeder steers 500 to 600 pounds are $160.50 to $173 and feeder steers 700 to 800 pounds are $145 to $153.75.  Medium and Large 1 feeder heifers 500 to 600 pounds are $149 to $156 and feeder heifers 700 to 800 pounds are $132 to $144.50.

Boxed beef cutout values closed sharply higher on good demand and moderate offerings.  Choice up $1.82 at $208.43 and Select up $1.89 at $199.66.  The Choice/Select spread is $8.77.  Estimated cattle slaughter is 118,000 head – even on the week and up 3,000 on the year.

Lean hog futures closed higher on support from wholesale values.  However, the lack of fundamental support could turn contracts back negative. Contracts are at a discount to cash. August lean hogs closed $.72 higher at $55.25 and October lean hogs closed $47 higher at $51.65.

Cash hogs closed lower and continue to deteriorate.  Offerings are growing and are expected to do so over the next few months, but for prices to slow their decline some recovery is needed in terms of demand.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.59 lower with a range of $42 to $45.50 for a weighted average of $43.63; the Western Corn Belt closed $1.52 lower with a range of $42 to $44.50 for a weighted average of $43.62; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.21 lower with a range of $42 to $44.50 for a weighted average of $43.73.

Butcher hogs at the Midwest cash markets are steady at $36.  At Illinois slaughter sows are $1 higher at $20 to $32 with light to moderate demand for heavy offerings.  Barrows and gilts are $1 lower at $20 to $34 with light to moderate demand for moderate offerings.

Pork cutout values closed weak – down $.06 at $71.01.  The primals are mixed with the largest declines in the hams and bellies.  The butts were weak.  The loins, ribs, and picnics all closed higher.  Estimated hog slaughter is 467,000 head – up 72,000 on the week and 18,000 on the year.