Market News
Hog futures open the week higher
At the Chicago Mercantile Exchange, live and feeder cattle ended the day mixed, waiting for direct cash business to develop. August live cattle closed $.77 higher at $123.52 and October live cattle closed $1 higher at $129.12. August feeder cattle closed $.85 lower at $157.20 and September feeder cattle closed $1.07 lower at $162.
It was a quiet Monday for direct cash cattle trade activity. Bids and asking prices have yet to be established. Showlists this week are mixed – higher in Kansas and Nebraska/Colorado, but somewhat smaller in Texas. Look for more business to develop over the balance of the week.
At midsession at the Oklahoma National Stockyards, compared to last week feeder steers were steady to $2 higher. Feeder heifers were unevenly steady. Steer calves started $5 to $7 lower and heifer calves were unevenly steady. The USDA says demand was moderate. Receipts were down on the week and about steady on the year. Feeder supply included 73% steers and 74% of the offering was over 600 pounds. Medium and Large 1 feeder steers 806 to 840 pounds brought $142 to $153.50 and feeder steers 858 to 864 pounds brought $148.50 to $150.25. Medium and Large 1 feeder heifers 554 to 595 pounds brought $145 to $157 and feeder heifers 662 to 695 pounds brought $148 to $154.
Boxed beef closed sharply higher with good demand for light offerings. Choice closed $4.97 higher at $329.80 and Select closed $5.53 higher at $303.55. The Choice/Select spread is $26.25.
Estimated cattle slaughter 119,000 head – up 6,000 on the week and the year. Friday’s cattle slaughter was revised to 116,000 head.
Lean hog futures ended the day higher, supported by contracts’ discount to cash and long-term demand expectations. October lean hogs closed $2.47 higher at $89 and December lean hogs closed $1.67 higher at $81.85.
Cash hogs closed lower with fairly light negotiated purchases. The industry continues to monitor the availability of market-ready barrows and gilts. Demand for US pork on the global market and domestically has been very strong. And up until recently had been pushing prices higher. There isn’t a big demand shift expected. Barrows and gilts at the National Daily Direct closed $2.29 lower with a base range of $94 to $100 and a weighted average of $95.68. Prices at the regional direct markets were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were steady to $2 higher with good demand for moderate to heavy offerings at $69 to $87. Barrow and gilt prices were steady with moderate demand for heavy offerings at $62 to $70. Boars ranged from $45 to $50 and $10 to $12.
Pork values closed sharply lower, down $6.33 at $119.35. Hams dropped nearly $26. Bellies and loins were both lower. Picnics, butts, and ribs were all higher.
