Market News
Cattle futures start the week higher on oversold signals
At the Chicago Mercantile Exchange, live and feeder cattle futures ended the day higher on oversold signals. August live cattle closed $1.27 higher at $104.50 and October live cattle closed $.40 higher at $105.30. September feeder cattle closed $.27 higher at $140.30 and October feeder cattle closed $.45 higher at $140.62.
It was a quiet start to the week for direct cash cattle trade. Bids and asking prices have yet to be established. Prices could face pressure again this week as packers have plentiful supplies available to them. Look for trade to pick up as the week progresses.
At Midsession at the Oklahoma National Stockyards, compared to last week feeder steers are $4 to $7 lower. There’s no trend available in early rounds for feeder heifer and calves, however a lower undertone is noted. The USDA says demand was moderate to light and quality, in the early rounds, has been mostly good to averages. Receipts are up on the week. Feeder supply included 56 percent steers and 54 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 604 to 634 pounds brought $140 to $152 and feeder steers 688 to 693 pounds brought $135 to $149.85. Medium and Large 1 feeder heifers 538 to 548 pounds brought $136.50 to $145 and feeder heifers 609 to 648 pounds brought $130.50 to $133.50.
Boxed beef closed mixed with moderate demand for light to moderate offerings. Choice closed $1.45 lower at $227.95 and Select closed $.46 higher at $215.32. The Choice/Select spread is $12.63. Estimated cattle slaughter is 119,000 head – up 2,000 on the week.
Lean hog futures closed mixed, mostly lower on spread trade and long-term supply and demand uncertainty. October lean hogs closed $.05 lower at $53.60 and December lean hogs closed $.07 lower at $55.12.
Cash hogs closed steady with solid negotiated purchases. Packers were more aggressive in their procurement efforts Monday afternoon. But, the reality is heavy supplies continue to put pressure on the cash hog market. Packers are ramping up daily slaughter totals, adding more pork to the market and that, combined with the heavy supplies makes it very difficult for the market to break out of its current price pattern and push higher. Especially as both global and domestic demand face ongoing uncertainties. Barrows and gilts at the National Daily Direct closed $.09 higher with a base range of $37 to $43.50 for a weighted average of $43; the Iowa/Minnesota closed $.02 lower for a weighted average of $42.76; the Western Corn Belt closed $.01 lower for a weighted average of $42.77; the Eastern Corn Belt had no comparison with a weighted average of $43.18.
The Midwest cash markets are closed today. At Illinois, slaughter sow prices were firm with good demand for moderate offerings at $11 to $23. Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $22 to $27. Boars ranged from $1 to $3.
Pork values closed higher – up $1.23 at $72.62. Picnics, hams, ribs, and bellies are all higher. Loins closed steady and butts were weak. Estimated hog slaughter is 486,000 head – up 17,000 on the week. Saturday’s hog slaughter has been revised to 269,000 head.
