Hog futures higher on an oversold bounce
At the Chicago Mercantile Exchange, live cattle ended the day higher on oversold signals and reduced overall meat supplies in Cold Storage. Feeder cattle were higher on the same factors with additional support from the day’s lower move in corn. August live cattle closed $2.07 higher at $97.20 and October live cattle closed $1.30 higher at $99.87. August feeder cattle closed $1.45 higher at $133.20 and September feeder cattle closed $1.40 higher at $134.47.
Another round of light direct cash cattle trade has developed. Dressed deals in Nebraska are at $155, but those deals are marked for delayed delivery. Live deals were at $97. Asking prices in Nebraska are at $105 live and $165 dressed. But, the rest of cattle country is still relatively quiet. There was a very light trade that took place on Monday at $152 to $155 dressed.
At the Joplin Regional Stockyards in Missouri, compared to last week steer and heifer calves and yearling heifers were $2 to $5 lower, yearling steers were steady. The USDA says demand and supply were moderate. Receipts were down on the week and the year. Feeder supply included 59 percent steers and 49 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 646 pounds brought $138 to $147 and feeder steers 773 to 789 pounds brought $124.50 to $129.75. Medium and Large 1 feeder heifers 502 to 544 pounds brought $128 to $135 and feeder heifers 550 to 599 pounds brought $127 to $138.
Boxed beef closed weak to lower on moderate demand for heavy offerings. Choice closed $2.25 lower at $211.81 and Select closed $.73 lower at $203.57. The Choice/Select spread is $8.24. Estimated cattle slaughter is 120,000 head – up 1,000 on the week and down 3,000 on the year.
Lean hog futures ended the day higher on an oversold bounce with additional support from tighter pork supplies in Cold Storage and firm cash prices during the session. July lean hogs closed $.07 higher at $46.90 and August lean hogs closed $1.40 higher at $52.50.
Cash hogs ended the day firm with strong negotiated purchases. The supply of market-ready hogs is heavy and with slaughter totals returning to more normal levels, the supply chain is moving. The industry is keeping an eye on the demand picture – both globally and domestically as demand will be crucial to keeping prices supported. Packers are still working to move through their backlog of hogs, but that’s something that will take some time. Barrows and gilts at the National Daily Direct closed $.29 higher with a base range of $24 to $30 for a weighted average of $28.68; the Iowa/Minnesota closed $.62 higher for a weighted average of $28.55; the Western Corn Belt closed $.75 higher for a weighted average of $28.53. 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 steady with moderate demand for moderate offerings at $7 to $18. Barrow and gilts prices were steady with light demand for moderate offerings at $10 to $18. Boars ranged from $2 to $5.
Pork values closed lower – down $1.66 at $63.18. Hams, loins, and picnics were weak to sharply lower. Bellies were steady. Butts and ribs were higher. Estimated hog slaughter is 468,000 head – up 10,000 on the week and down 5,000 on the year. Monday’s hog slaughter has been revised to 449,000 head.