Market News
Hog futures pressured by lower cash and wholesale business
At the Chicago Mercantile Exchange, live cattle were lower and feeders were mixed ahead of direct cash business. October live cattle closed $.60 lower at $125.02 and December live cattle closed $.92 lower at $129.25. October feeder cattle closed $.75 lower at $158.57 and November feeder cattle closed $.07 higher at $161.80.
It was a quiet Tuesday for direct cash cattle trade activity. Asking prices surfaced around $125 to $126 live in the South, while the North was quiet. Bids have been non-existent. The CBP Texas Cash Pool reported 307 head sold at $124.15. It looks it will be midweek or later before significant trade volume develops.
At the Callaway Livestock Center in Missouri, compared to last week, weaned steer calves 400 to 650 pounds were mostly steady, with yearling over 650 pounds scarce. Feeder heifers 450 to 500 pounds were steady to $3 lower on a light test, heifers 500 to 550 pounds were lightly tested, and heifers 550 to 700 pounds sold with a firm to higher undertone compared to last week’s limited offering. Receipts were up slightly on the week and down on the year. Feeder supply included 44% steers and 47% of the offering was over 600 pounds. Medium and Large 1 feeder steers 505 to 545 pounds brought $177 to $187 and feeder steers 607 to 647 pounds brought $155.75 to $164. Medium and Large 1 feeder heifers 572 to 595 pounds brought $153 to $160 and feeder heifers 700 to 709 pounds brought $150 to $154.75.
Boxed beef closed lower on light demand for solid offerings. Choice closed $.05 lower at $281.07 and Select closed $2.29 lower at $261.35. The Choice/Select spread is $19.72. Estimated cattle slaughter is 120,000 – down 2,000 on the week and the year.
Lean hog futures ended the day lower, pressured by cash and wholesale business. October lean hogs closed $.87 lower at $89.07 and December lean hogs closed $2 lower at $78.17.
Cash hogs closed higher with solid negotiated purchases. Processors were a little more aggressive in their procurement efforts on Tuesday. The industry does continue to monitor the availability of market-ready barrows and gilts. Demand for US pork on the global market and domestically has remained strong, but there are long-term demand concerns which is adding pressure to prices. Barrows and gilts at the National Daily Direct closed $.49 higher with a base range of $66 to $72 and a weighted average of $69.11; the weighted average at the Iowa/Minnesota was $69.56 and the weighted average at the Western Corn Belt was $69.57. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $60.
Pork values closed sharply lower – down $5.63 at $102.38. Hams, and picnics were sharply lower. Butts, bellies, ribs, and loins were also lower. Estimated hog slaughter is 477,000 head – up 1,000 on the week and down 16,000 on the year.
