Market News

Hog, cattle futures start the week on a positive note

At the Chicago Mercantile Exchange, live cattle futures ended the day higher, contracts were oversold and due for a bounce.  There is also some expectation of a stronger cash trade this week.  Feeder cattle futures ended the day higher on the same factors.  August live cattle closed $1.35 higher at $105.62 and October lives closed $1.22 higher at $106.70.  August feeder cattle closed $1.40 higher at $136.92 and September feeders closed $1.37 higher at $137.17. 

Direct cash cattle trade is off to a slow start.  Bids and asking prices have yet to surface.  This week’s showlists are mixed – larger in Texas, Nebraska, and Colorado, but smaller in Kansas.  Packers remain extremely short-bought so we could start to see business begin earlier in the week.  But, significant trade volume could also be delayed until the latter half of the week.

At Midsession, at the Oklahoma National Stockyards, receipts are up on the week and down on the year.  Compared to last week, feeder steers were $3 to $7 lower on a limited test.  Feeder heifers were steady to $2 lower.  Steer and heifer calves were too lightly tested for an accurate trend.  Demand was moderate and quality was plain to average.  Feeder supply included 57 percent steers and 67 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 783 to 797 pounds brought $130.75 to $132 and feeder steers 911 to 944 pounds brought $116.75 to $122.50.  Medium and Large 1 feeder heifers 654 to 693 pounds brought $125 to $133 and feeder heifers 703 to 733 pounds brought $123 to $126. 

Boxed beef ended the day steady to weak on light to moderate demand and moderate offerings.  Choice closed $.41 lower at $221.82 and Select closed $.25 lower at $202.51.  The Choice/Select spread closed at $19.31.   Estimated cattle slaughter is 120,000 head – down 1,000 on the week, but up 4,000 on the year. 

Lean hog futures ended the day higher; contracts were oversold and that sparked interest through the entire complex.  There is also still some hope demand for US pork will increase as China continues to battle African Swine Fever.  July lean hogs closed $1.70 higher at $83.05 and August lean hogs closed $1.62 higher at $82.25. 

Cash hogs ended the day weak with moderate negotiated purchase totals.  The market is struggling to find a balance with supply and demand.  The availability of market-ready hogs is ample and the large slaughter runs are well above last year’s pace.  But, demand remains uncertain.  While China’s hog herd is declining because the spread of African Swine Fever hasn’t slowed, the contentious trade situation isn’t helping to boost US pork supplies headed into China at the rate that the market had originally anticipated.  Barrows and gilts at the National Daily Direct closed $.29 lower with a base range of $67 to $77 for a weighted average of $75.42.  Prices at the major directs were not reported at close due to confidentiality. 

Butcher hogs at the Midwest cash markets had no comparison but are at $54. At Illinois, slaughter sow prices were steady at $26 to $40 with light to moderate demand for heavy offerings.  Barrow and gilt prices were steady at $47 to $51 with moderate demand for moderate offerings. 

Pork values closed steady – down $.24 at $82.97.  Loins and hams were lower.  Picnics were firm.  Butts, bellies, and ribs were higher to sharply higher.  Estimated hog slaughter is 467,000 head – down 4,000 on the week and up 51,000 on the year. 

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