Market News
Futures higher, cash lower for hogs and cattle
Chicago Mercantile Exchange live cattle futures were higher Tuesday, supported by follow through buying after Friday’s higher finish. The trade is also watching weather in the Plains, with some key feeding areas expected to experience a wide range of conditions this week, potentially causing stress. October was up $1.32 at $105.77 and December was $1.65 higher at $110.12.
Feeder cattle were up on the same factors as the live pit. September was $1.30 higher at $138.95 and October was up $1.35 at $139.85.
Direct cash cattle trade was slow Tuesday following the extended holiday weekend. Bid and asking prices are not well established and while a big feature will likely the distribution of this week’s new direct cash cattle showlist, both could start to surface later in the week. Cash cattle on showlists were mixed with more trade expected as the week continues. Packers were slow to return to buying after the an extended weekend. Buyers and sellers will be watching results from the holiday weekend’s retail beef clearance.
At South Dakota last week, feeder steers and feeder heifers were weak, mostly $1 to $5 lower. Demand remains good but the feeder market is pressured by CME cattle contracts retreating. Medium and large 1 feeder steers weighing 600 to 700 pounds brought $142.00 to $167.50. Medium and large 1 feeder heifers weighing 500 to 600 pounds brought $132.00 to 155.00.
Boxed beef closed lower on light offerings. Choice closed $1.03 lower at $224.82 and Select closed $0.84 lower at $208.46. The Choice/Select spread is $16.36.
Lean hog futures were modestly higher, with a big midday gain in pork helping contracts shrug off a mixed start to the day and week. Gains were limited by the lower cash business during the session. October was up $.07 at $59.90 and December was $.42 higher at $58.67.
Cash hogs closed lower with light negotiated purchases.
The industry continues to monitor the supply and demand picture. The trend to start the week has depended on packer demand coming back from the long weekend, trying to make up for Monday’s lack of production. Some of that will be processed during the week, but there will probably be a large Saturday slaughter. The industry is also watching for indicators of retail demand after Labor Day weekend.
Barrows and gilts at the National Daily Direct closed $.47 lower for a weighted average of $45.89; the Iowa/Minnesota closed $.73 higher for a weighted average of $47.17; the Western Corn Belt closed $1.13 lower for a weighted average of $45.82. Prices at the Eastern Corn Belt was not reported due to confidentiality.
At Illinois Slaughter sow prices were steady, with good demand for heavy offerings at $11 to $23. Barrows and gilts prices were firm, with good demand for moderate to heavy offerings at $24 to $28.
Pork values closed higher – up $0.35 at $80.91. Hams dropped nearly $7. Bellies were $7.74 higher. Picnics were firm. Ribs, butts, and loins were lower. Loins were sharply higher.
