Cattle, hog futures lower to start the week
At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower ahead of the week’s direct cash business. June live cattle closed $1.65 lower at $130.52 and August live cattle closed $2.02 lower at $130.37. August feeder cattle closed $1.20 lower at $165.12 and September feeder cattle closed $1.17 lower at $168.12.
It was a quiet Tuesday for direct cash cattle trade activity. Bids and asking prices were slow to surface. Showlists this week are mixed, lower in Kansas, Nebraska/Colorado, and somewhat higher in Texas. Look for significant trade volume to develop over the balance of the week.
In Missouri last week, steers under 650 pounds were uneven, from $2 lower to $2 higher. Steers over 650 pounds and all weights of heifers were mostly steady to $3 higher. The USDA says the supply of feeders was moderate and mostly lighter weights, although there were a few loads of heavier weight cattle. Receipts were up on the week and the year. Feeder supply included 54% steers and 39% of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 599 pounds brought $164.50 to $202 and feeder steers 600 to 648 pounds brought $143 to $194.75. Medium and Large 1 feeder heifers 450 to 498 pounds brought $135 to $184 and feeder heifers 500 to 548 pounds brought $139 to $179.50.
Boxed beef ended the day higher with solid demand for moderate offerings. Choice closed $2.12 higher at $267.54 and Select closed $2.15 higher at $248.65. The Choice/Select spread is $18.89. Estimated cattle slaughter 126,000 head – up 1,000 on the week and up 31,000 on the year.
Lean hog futures ended the lower on demand concerns. June lean hogs closed $2.42 lower at $107.97 and July lean hogs closed $3.72 lower at $108.
Cash hogs closed higher with a moderate negotiated run. Demand for US pork on the global market and domestically has helped provide some price support. However, the industry remains cautious as there are demand uncertainties that could create more volatility in the markets. Processors have been somewhat aggressive in their procurement efforts recently and have been bidding up to move their desired numbers. And all eyes are monitoring the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $1.90 higher with a base range of $104 to $115 and a weighted average of $111.58; the Iowa/Minnesota closed $.88 higher with a weighted average of $114.09; the Western Corn Belt closed $.22 higher with a weighted average of $113.99. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are at $70.
Pork values closed higher – up $1.55 at $107.71. Loins, butts, bellies, and picnics were sharply higher. Ribs and hams lower to sharply lower. Estimated hog slaughter is 480,000 head – up 7,000 on the week and up 82,000 on the year. Last Friday’s hog slaughter has been revised to 449,000 head.