Cattle, hog futures mixed heading into Friday
At the Chicago Mercantile Exchange, live and feeder cattle are mixed watching the week’s direct cash business develop. October live cattle closed $.02 lower at $108.52 and December live cattle closed $.52 lower at $111.82. October feeder cattle closed $.42 lower at $140.92 and November feeder cattle closed $.80 lower at $141.25.
A light trade took place in the South on Thursday. Business was mostly steady with Wednesday’s trade of $107 live, $2 higher than the prior week’s weighted averages. There were also a handful of dressed deals reported in Iowa at $168, $1 higher than Wednesday’s trade and $3 higher than last week. This week’s business will likely finish up sometime on Friday.
At the Winter Livestock Auction in Kansas, compared to last week, feeder steers 500 to 925 pounds sold $4 to $5 higher. Feeder heifers 500 to 850 pounds were $5 to $6 higher. Heifers over 850 pounds were $10 higher. Receipts were down on the week, but up on the year. Feeder supply included 66 percent steers and 81 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 752 to 793 pounds brought $142 to $149.50 and feeder steers 851 to 899 pounds brought $137 to $143.35. Medium and Large 1 feeder heifers 753 to 796 pounds brought $130.50 to $135 and feeder heifers 878 pounds brought $136.25.
Boxed beef closed steady to higher on moderate to good demand for moderate offerings. Choice is $1.24 higher at $218.98 and Select is $.08 higher at $207.62. Estimated cattle slaughter is 120,000 head – down 1,000 on the week and up 3,000 on the year.
Lean hog futures ended the day mixed on spread adjustments with the lower cash trade and the sharply higher wholesale values during the session. October lean hogs closed $1.35 higher at $74.15 and December lean hogs closed $.25 at $62.85.
Closing cash hog prices have been delayed due to technical issues at the USDA. Brownfield will provide an update as soon as possible. At mid-session, barrows and gilts at the National Daily Direct were lower.
Despite heavy supplies of market-ready hogs, the industry remains optimistic demand for US pork will see a big boost on the global market. There’s been a big shuffling on the global pork market and the US could be in a position to see China purchase even more pork as the country continues to ban imports from Germany following the finding of African swine fever in the wild boar population.
Butcher hog prices at the Midwest cash markets were steady at $40. At Illinois, slaughter sow prices were firm with good demand for heavy offerings at $14 to $17. Barrow and gilt prices were weak with good demand for moderate to heavy offerings at $40 to $45. Boars ranged from $1 to $3.
Pork values closed sharply higher – up $4.28 at $95.65. Hams closed nearly $9 higher and bellies closed almost $9 higher. Loins and butts were firm. Ribs and picnics closed lower. Estimated hog slaughter is 485,000 head – up 16,000 on the week and down 2,000 on the year. Wednesday’s hog slaughter has been revised to 467,000 head.