Market News

Cattle, hog futures start the week quiet

At the Chicago Mercantile Exchange, live cattle futures ended the day mixed ahead of widespread direct cash business in relatively quiet trade.  There are expectations for improved demand and that’s helping to provide some price support.  Feeder cattle were slightly higher on the same factors with support from the day’s lower move in corn.  August live cattle closed $.02 higher at $108.50 and October live cattle closed $.20 lower at $109.77.  August feeder cattle closed $.05 higher at $141.65 and September feeder cattle closed $.05 higher at $142.60. 

Direct cash cattle trade activity is off to its typically quiet start.  Bids and asking prices have yet to surface.  The momentum from the stronger trade at the end of last week could carry over into this week.  Showlists are mixed – higher in Kansas, Nebraska, and Colorado, but lower in Texas.  Significant trade volume isn’t likely to develop until the latter half of the week. 

At the Oklahoma National Stockyards, receipts were up on the week and the year.  At mid-session, compared to last week feeder steers and heifers are $2 to $4 higher with instances of $7 to $8 higher.  Steer and heifer calves were not well tested.  The USDA says demand was good and quality was plain to average.  More seasonal weather has arrived, and temperatures are hot.  Feedyards are hoping to fill pen space after Friday’s business.  Feeder supply is 52 percent steers and 83 percent of the offering is over 600 pounds.  Medium and Large 1 feeder steers 656 to 676 pounds brought $138 to $142 and feeder steers 859 to 896 pounds brought $129 to $141.  Medium and Large 1 feeder heifers 665 to 685 pounds brought $131 to $137.75 and feeder heifers 703 to 747 pounds brought $129 to $135. 

Boxed beef closed mixed – firm on Choice and weak on Select – on light to moderate demand and heavy offerings.  Choice closed $.47 higher at $213.27 and Select closed $.39 lower at $189.21.  The Choice/Select spread closed at $24.06.   Estimated cattle slaughter is 117,000 head – down 3,000 on the week and up 1,000 on the year. 

Nearby lean hog futures closed lower while deferred contracts ended the day higher.  Supply concerns, wholesale and cash weakness during the session pressured prices, while longer-term demand optimism helped boost levels in the deferred months.  July lean hogs closed $.27 lower at $70.77 and August lean hogs closed $.55 lower at $80.10. 

Cash hogs closed firm with moderate negotiated purchase totals.  Supply and demand continue to be the focus of the cash hog market.  The availability of market-ready barrows and gilts is ample and slaughter runs are well above year-ago totals adding more pork to a market that is already saturated.   However, optimism has returned as China is still struggling to control the spread of African Swine Fever and the country’s pork production declines.  There is still hope demand for US pork will increase on the global market and should be supportive to higher prices.     Barrows and gilts at the National Daily Direct closed $.37 higher with a range of $58 to $71.50 for a weighted average of $68.45.  Prices at the regional direct markets were not reported at the close due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $40.  At Illinois, slaughter sow prices were steady at $19 to $31 with moderate demand for moderate to heavy offerings.  Receipts were down on the week and the year.  Barrow and gilt prices were firm at $40 to $48. 

Pork values closed higher – up $1.25 at $72.90.  Bellies jumped $5.15.  Ribs and hams were higher.  Butts were firm.  Loins closed steady.  Picnics were weak.    Estimated hog slaughter is 410,000 head – down 69,000 on the week and 19,000 on the year.  Friday’s hog slaughter has been revised to 460,000 head.