Market News

Cattle, lean hog futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle futures were higher with boxed beef up at midday and traders getting ready for the week’s direct business. October live was up $1.05 at $144.32 and December was $.97 higher at $148.02. October feeders were $1.35 higher at $175.52 and November was up $1.42 at $176.05.

It was a quiet Monday for direct cash cattle trade activity.  Showlists this week are lighter in all feeding regions.  Business is expected to hold out until midweek or later.

At the Oklahoma National Stockyards, compared to last week, feeder steers are $1 to $3 lower with heifers mostly steady. The USDA says demand is moderate to good for feeder cattle with average to attractive quality. Extreme drought continues to impact much of the region, but cooler temperatures and rain are expected this week. Receipts are up on the week and year. Feed supply featured 59% steers and 39% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 601 to 649 pounds brought $172 to $186 and 758 to 792 pounds brought $165 to $173.50. Medium and Large 1 feeder heifers 557 to 592 pounds brought $155 to $169 and 658 to 694 pounds brought $161 to $166.

Box beef closed higher at with heavy and large offerings. Choice is $245.94 up $2.19. Select is up $1.18 to $221.31. Estimated cattle slaughter is 127,000 up on the week and year.

Lean hog futures were mostly higher on spread trade and the sharply higher midday pork. October was down $.45 at $88.77 and December was up $1.50 at $77.72.

Cash hogs closed lower.  Processors didn’t have to work hard to meet procurement efforts.  Last week’s Quarterly Hogs and Pigs report showed that the U.S. herd is shrinking sightly, but there weren’t many signs of expansion.  Expansion efforts might be limited by the broader economy, input prices and inflation.

Barrow and gilts at the National Daily Direct closed lower at $2.48 with a base range of $79 to $97.50 with a weighted average at $82.60.  Other regional markets did not report due to confidentiality reasons.

Butcher hog prices at the Midwest cash markets were steady at $64.

At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $58 to $70. Barrows and gilts were steady with moderate demand for moderate offerings at $60 to $69. Boars ranged from $39 to $41 and $9 to $19.

Pork values closed higher up $2.34 at $99/93 Loins and picnics were down. Butts, ribs and hams were higher.  Bellies were sharply higher – $14.62. Estimated hog slaughter is 472,000 – down 12,000 on the week, but up 7,000 on the year.