Hog futures higher on export sales strength
Chicago Mercantile Exchange live cattle futures were mixed and feeders closed lower, watching corn and the direct cash cattle markets. Beef export sales were down on the week, but a little bit larger than the four-week average. June live was up $.10 at $132.40 and August was $.07 higher at $132.60. August feeders were down $1.27 at $166.67 and September was $1.32 lower at $169.72.
Cash cattle trade remains quiet ahead of the holiday weekend. The bulk of this week’s business is likely wrapped up. Asking prices for cattle left on showlists are around $138 in the South and $225 dressed in the North. Southern live deals have come in mostly $1 lower than last week’s weighted averages at $137 while Northern dressed trade has taken place mostly at $223, $3 lower than last week’s weighted average basis in Nebraska.
Boxed beef closed higher, Choice up $1.04 at $263.97 and Select up $.37 at $244.43. The Choice/Select spread is $19.54.
At the Farmers and Ranchers Livestock Commission in Salina, Kansas, compared to the last test, steers from 800 to 950 pounds sole $1 to $3 lower; heifers 750 to 800 pounds sold steady to $.50 lower. USDA says demand was light to moderate on light supply. Receipts were down on the week and year. Feeder supply included 75 percent steers and 87 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 761 to 789 pounds brought $163 to $170 and feeder steers from 820 to 824 pounds brought $155.00 to $155.50. Medium and Large 1 feeder heifers weighing 605 to 634 pounds brought $154.50 to $160 and feeder heifers from 752 to 794 pounds brought $137 to $143.25.
Estimated cattle slaughter is 124,000 head, down 1,000 on the week but up 3,000 on the year.
Lean hog futures were mostly sharply higher on bull spreading, the higher midday pork, and the solid export sales total. Mexico, Canada, and China were the biggest weekly buyers. June was up $2.05 at $111.10 and July was $3.87 higher at $111.82.
Cash hogs closed lower. Demand for US pork on the global market has overall been very strong, helping provide price support. But there are long-term concerns that create uncertainty in the market. The industry continues to monitor the availability of market-ready hogs. And processors are moving their desired numbers without having to get too aggressive in their procurement efforts.
Barrows and gilts at the National Daily Direct are $1.27 lower with a base range of $104 to $116.50 and a weighted average of $111.35. The Iowa/Minnesota had a weighted average of $113.07; the Western Cornbelt a weighted average of $114.25; the Eastern Cornbelt was not reported due to confidentiality.
Pork values closed higher, up $1.06 at $108.13. Hams, bellies, picnics, and butts were higher; loins and ribs were lower.
Estimated hog slaughter is 475,000, up 2,000 on the week but down 8,000 on the year.