Market News

Live cattle, hog futures close lower ahead of a busy week of reports

At the Chicago Mercantile Exchange, live cattle ended the day lower ahead of the week’s cash business and Friday’s on Feed numbers.  Feeder cattle closed higher, finding support from some weakness in corn. June live cattle closed $.07 lower at $120.97 and August live cattle close d$.52 lower at $121.02.  August feeder cattle closed $.07 higher at $155.10 and September feeder cattle closed $.15 higher at $157.37.   

It was a typically quiet start to the week for direct cash cattle trade activity.  Bids and asking prices have yet to surface.  Showlists this week are higher across all major feeding areas.  Look for more business to develop as the week progresses. 

At the Oklahoma National Stockyards, feeder steers were $1 to $3 lower and feeder heifers have been unevenly steady.  Steer and heifer calves calves were lightly tested and unevenly steady.  The USDA says demand was moderate to good.  Receipts are down on the week and up on the year.  Feeder supply included 56% steers and 78% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 805 to 849 pounds brought $136 to $148.50 and feeder steers 860 to 888 pounds brought $127.25 to $140.50.  Medium and Large 1 feeder heifers 604 to 646 pounds brought $131 to $146 and feeder heifers 757 to 789 pounds brought $132 to $145.25. 

Boxed beef closed lower to sharply lower on light demand for light to moderate offerings.  Choice closed $2.08 lower at $321.20 and Select closed $2.15 lower at $281.46.  The Choice/Select spread is $39.74. 

Estimated cattle slaughter is 118,000 head – up 2,000 on the week and up 3,000 on the year. 

Lean hog futures ended the day lower on fund liquidation, ignoring cash and wholesale business during the session.  July lean hogs closed $1.62 lower at $107.05 and August lean hogs closed $3 lower at $103.67. 

Cash hogs closed higher with a moderate negotiated run.  Processors continue to monitor the availability of market-ready barrows and gilts.  In recent weeks prices have found some support as processors were aggressively bidding up to move their desired numbers.  The strong demand for US pork on the global market and domestically has also been supportive to prices and the industry expects that to continue. 

Barrows and gilts at the National Daily Direct closed $.95 higher with a baser range of $112.50 to $137.50 and weighted average of $123.57; the Iowa/Minnesota with a weighted average of $131.72; the Western Corn Belt had a weighted average of $132.11.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market are up $5 from last week at $80. At Illinois, slaughter sow prices are $2 higher with good demand for heavy offerings at $40 to $50.  Barrow and gilt prices were firm with good demand for heavy offerings at $84 to $91.  Boars ranged from $45 to $50 and $12 to $18.   

Pork values closed firm – up $.11 at $120.76.  Butts and ribs both closed sharply higher.  Picnics were higher.  Bellies, hams, and loins were lower to sharply lower.    

Estimated hog slaughter is 468,000 head – down 6,000 on the week and up 17,000 on the year.  Friday’s hog slaughter has been revised to 464,000 head.