Market News

Lean hogs start the week sharply lower

At the Chicago Mercantile Exchange, live cattle futures closed mostly lower ahead of widespread direct cash business with pressure from the lack of strong wholesale demand and carry-over from the lean hog trade.  Feeder cattle futures closed lower on the day’s higher move in corn and in wheat.  August live cattle closed $.20 higher at $102.42 and October live cattle closed $.12 lower at $104.02.  August feeder cattle closed $1.90 lower at $131.77 and September feeder cattle closed $1.70 lower at $132.35. 

Direct cash cattle trade is off to slow start this week.  There were a handful of deals reported in Iowa at $178 dressed – but not near enough to establish a trend.  Showlists for the week are lower in Texas, Kansas, Nebraska and Colorado. Bids and asking prices have yet to surface.  And it’s likely significant trade volume could be delayed until the second half of the week. 

At Midsession at the Oklahoma National Stockyards, receipts were down on the week and the year.  Compared to last week feeder steers were $3 to $6 higher with instances of as much as $8 higher.  Feeder heifers were steady to $2 higher.  Feeder supply included 51 percent steers and 76 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 705 to 748 pounds brought $137 to $145 and feeder steers 864 to 891 pounds brought $129 to $135.  Medium and Large 1 feeder heifers 602 to 642 pounds brought $126 to $137 and feeder heifers 808 to 821 pounds brought $114.75 to $124.50. 

Boxed beef ended the day steady on light to moderate demand and offerings.  Choice closed $.08 lower at $218.74 and Select closed $.26 higher at $199.81.  The Choice/Select spread closed at $19.93.    Estimated cattle slaughter is 121,000 head – down 1,000 on the week and up 5,000 on the year. 

Lean hog futures closed sharply lower on follow-through selling with expanded limits and long-term supply and demand concerns.  July lean hogs closed $3.40 lower at $72.85 and August lean hogs closed $3.67 lower at $74.22. 

Cash hogs closed weak with fairly strong negotiated purchase totals.  The market is focused primarily on the supply and demand situation.  Supplies are heavy and demand remains uncertain. All eyes will be on trade talks with China as they are set to resume talks with the US this week.  African Swine Fever continues to plague that part of the world and there is still hope that US pork will see increased demand on the global demand as China is forced to turn elsewhere to meet its pork and protein needs.  Barrows and gilts at the National Daily Direct closed $.34 lower with a base range of $64 to $75.50 for a weighted average of $73.51.  Prices at the major directs were not reported due to confidentiality. 

Butcher hog prices at the Midwest Cash Market are $1 higher at $53 and $54.  At Illinois, slaughter sow prices were $1 to $2 lower at $23 to $36 with light to moderate demand for moderate offerings.  Barrow and gilt prices were steady at $47 to $51 with moderate demand for moderate offerings. 

Pork values closed firm – up $.60 at $77.33.  Bellies were sharply higher.  Picnics closed higher.  Hams, butts, and loins were steady.  Ribs were sharply lower. Estimated hog slaughter is 448,000 head – down 19,000 on the week and up 14,000 on the year.