Cattle, hog futures mostly lower following USDA report

Market News

Cattle, hog futures mostly lower following USDA report

At the Chicago Mercantile Exchange, live cattle ended the day mostly lower, pressured by the USDA’s bearish production outlook for beef and the weaker cash trade.  Feeder cattle were lower on the same factors with additional pressure from the day’s higher move in corn.  June live cattle closed $.22 higher at $96.82 and August live cattle closed $.05 lower at $96.45.  August feeder cattle closed $.50 lower at $132.17 and September feeder cattle closed $.90 lower at $133.25. 

A light to moderate direct cash cattle trade took place on Thursday.  Deals in parts of the South were at $104 to $107, mostly $106, $2 lower than Wednesday’s light business which ranged from $98 to $108.  Northern dressed deals for the week have had a full range of $165 to $172, mostly $172, which is $8 lower than the previous week’s averages.  Look for asking prices to resurface on Friday around $110 live and $175, plus dressed. 

At the Clovis Livestock Auction in New Mexico, compared to last week feeder steers and calves were mostly steady to $2 lower.  Heifer calves and feeders mostly $1 to $3 lower.  Receipts were up on the week, but down on the year.  Feeder supply included 39 percent steers and 50 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 451 to 492 pounds brought $146 to $155 and feeder steers 755 to 787 pounds brought $115 to $119.  Medium and Large 1 feeder heifers 674 to 685 pounds brought $106 to $115.25 and feeder heifers 707 to 726 pounds brought $106. 

Boxed beef cutout values closed weak to lower on moderate demand for heavy offerings.  Choice closed $.50 lower at $235.56 and Select closed $2.96 lower at $219.88.  The Choice/Select spread is $15.68. Estimated cattle slaughter is 117,000 head – even on the week and down 6,000 on the year. 

Lean hog futures closed mostly lower on follow-through selling and USDA’s projection for increased production outlook for 2020. June lean hogs closed $.12 higher at $47.97 and July lean hogs closed $.67 lower at $52.15. 

Cash hogs closed steady to weak with moderate negotiated.  Supplies of market-ready hogs are heavy.  But the ongoing increases in daily slaughter capacity is helping to alleviate pressure on the supply chain and keep pork moving on to the market.  The industry remains hopeful demand for US pork will remain strong both domestically and globally and that should help to provide some price support.  Barrows and gilts at the National Daily Direct are $.01 lower with a base range of $27 to $34 for a weighted average of $30.15; the Iowa/Minnesota and the Western Corn Belt closed $.42 lower for a weighted average of $30.03.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $20.  At Illinois, slaughter sow prices were $2 lower with moderate demand for moderate to heavy offerings at $7 to $18.  Barrow and gilt prices were steady with light demand for heavy offerings at $10 to $18.  Boars ranged from $1 to $5. 

Pork values closed firm – up $.62 at $69.49.  Ribs closed $9.67 higher.  Loins, bellies, and picnics are firm.  Hams and butts were weak.  Estimated hog slaughter is 450,000 head – up 13,000 on the week, but down 29,000 on the year. 

Email this to someone


Share on Facebook


Tweet about this on Twitter


Print this page