Market News

Cattle, hog futures lower on supply concerns

At the Chicago Mercantile Exchange, live cattle futures ended the day lower on the limited buying interest.  Feeder cattle futures were lower following last week’s Cattle on Feed report.  April live cattle closed $.02 lower at $128.50 and June live cattle closed $1.10 lower at $121.57.  May feeder cattle closed $.72 lower at $150.80 and August feeder cattle closed $1.05 lower at $159.62. 

Direct cash cattle trade activity has started the week quietly.  This week’s showlists are mostly larger – with the exception of Nebraska, which is smaller.  Interest was limited and bids and asking prices have yet to surface.  It’s likely significant trade volume will be delayed until the last half of the week. 

At Midsession at the Oklahoma National Stockyards – receipts are up on the week and the year.  Compared to last week feeder steers and heifers were mostly steady to $4 higher.  Steer calves were lightly tested and limited numbers were unevenly steady.  Heifer calves were $1 to $3 higher.  The USDA says demand was good to very good especially for light-weight grazing type cattle.  Feeder supply included 62 percent steers and 71 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 750 to 793 pounds brought $145 to $154 and feeder steers 800 to 839 pounds brought $140 to $149.  Medium and Large 1 feeder heifers 701 to 744 pounds brought $130 to $137 and feeder heifers 811 to 837 pounds brought $125 to $132.25. 

Boxed beef values closed higher to sharply higher on moderate to good demand and light offerings.  Choice closed $.83 higher at $234.48 and Select closed $2.15 higher at $222.64.  The Choice/Select spread closed at $11.84. 

Estimated cattle slaughter is 114,000 head – up 7,000 on the week and 2,000 on the year. 

Lean hog futures ended the day with steep losses on profit taking and sharply lower cash prices during the session.  The market is still uneasy about the lack information coming out of China as the country is still struggling with African Swine Fever.  There’s been optimism that exports of US pork would increase – but that has yet to materialize.  May lean hogs closed $1.17 lower at $89.02 and June lean hogs closed $2.97 lower at $93.77. 

Cash hogs ended the day weak on light to moderate negotiated purchase totals.  It’s a game of back and forth – some days the pressure from supply and demand concerns outweighs the potential for increased demand as China continues to battle African Swine Fever.  Market ready supplies of barrows and gilts are ample.  Barrows and gilts at the Iowa/Southern Minnesota closed $.33 lower with a range of $75 to $83 for a weighted average of $81.39; the Western Corn Belt closed $.41 lower with a range of $73 to $83 for a weighted average of $80.65; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily direct closed $1.05 lower with a range of $73 to $83 for a weighted average of $79.89.

Butcher hog prices at the Midwest cash markets are lower at $55.  At Illinois, slaughter sow prices were $3 to $4 higher at $4 to $60 with very good demand for light to moderate offerings.  Barrow and gilt prices were $3 to $4 higher at $51 to $60 with very good demand for moderate offerings. 

Pork values closed firm – up $.62 at $87.86.  Butts, hams, and ribs were all higher.  Picnics were steady.  Loins were weak.  Bellies closed lower.  Estimated hog slaughter is 324,000 head – down 106,000 on the week and down 138,000 on the year.