Market News

Cattle, hog futures start the week lower

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct cash business with additional pressure from the broader markets. October live cattle closed $.77 lower at $143.47 and October feeder cattle closed $1.27 lower at $177.07. 

It was a quiet Monday for direct cash cattle trade activity.  Showlists this week are mixed, somewhat higher in Nebraska, but somewhat lower in Kansas, and lower in Texas.  Business is expected to hold out until midweek or later. 

At mid-session at the Oklahoma National Stockyards, compared to last week feeder steers and feeder heifers are $3 to $6 lower.  Steer calves were not well tested and heifer calves were $10 to $15 lower.  The USDA says demand was moderate to low and quality was average.  Dry conditions in the southern plains continue to play a factor.  Receipts were up on the week and the year.  Feeder supply included 53% steers and 45% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 556 to 578 pounds brought $164 to $197 and feeder steers 657 to 690 pounds brought $175 to $182.  Medium and Large 1 feeder heifers 550 to 589 pounds brought $161 to $172.50 and feeder heifers 618 to 644 pounds brought $164 to $170. 

Boxed beef closed mixed with a wide swing and solid offerings.  Choice closed $.79 lower at $247.84 and Select closed $4.04 higher at $223.35.  The Choice/Select spread is $24.49.  Estimated cattle slaughter was 125,000 head – down 2,000 on the week and up 6,000 on the year. 

Lean hog futures were pressured by long-term demand uncertainty and ongoing concerns about an economic slowdown.  October lean hogs closed $2.25 lower at $90.37 and December contracts closed $3.40 lower at $79.40. 

Cash hogs ended the day mixed with a solid negotiated run.    Processors were a little more aggressive in their procurement efforts and bid up to move their desired numbers.  All eyes will be on this week’s Quarterly Hogs and Pigs report, which pre-report estimates from Allendale suggest could be the smallest September 1 hog herd and smallest September 1 breeding herd in the last five years. Barrows and gilts at the National Daily Direct were $5.54 higher with a base range of $92 to $100 and a weighted average of $91.88; the Iowa/Minnesota and the Western Corn Belt closed $2.12 lower with a weighted average of $94.55; the Eastern Corn Belt had no comparison but a weighted average of $92.47.

Butcher hog prices at the Midwest cash markets are steady at $66. At Illinois, slaughter sow prices were steady with light to moderate demand for light to moderate offerings at $58 to $70.  Barrows and gilts were $1 lower with moderate demand for moderate offerings at $60 to $69.  Boars ranged from $39 to $41 and $9 to $19. 

Pork values closed firm – up $.53 at $101.46.  Bellies, ribs, and loins were all higher.  Hams, picnics, and butts were lower. Estimated hog slaughter was 484,000 head – up 6,000 on the week and up 10,000 on the year.