Cattle futures split, hogs mixed to open week

Market News

Cattle futures split, hogs mixed to open week

Chicago Mercantile Exchange live cattle futures were mostly modestly higher and feeders were sharply lower, watching corn and the distribution of this week’s direct cash cattle show list. August live was up $.37 at $137.75 and October was $.35 higher at $143.35. August feeders were down $2.25 at $179.30 and September was $1.80 lower at $182.67.

Cash cattle trade remains quiet with bids and asking prices not yet established Monday afternoon. Deals could be delayed until Wednesday or later at market players digest last week’s USDA cattle reports.

Boxed beef cutout values closed mixed with choice down $.64 at $267.12 and select up $1.97 at $242.50. The choice/select spread is $24.62.

At the Oklahoma National Stockyards in Oklahoma City, compared to last week, feeder steers sold $4 to $8 higher, feeders heifers sold $2 to $6 higher. Steer calves sold $8 to $10 higher, and heifer calves were steady to $4 higher. USDA says demand was moderate to good with average to attractive quality. Feeder supply included 50 percent steers and 61 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 771 to 792 pounds brought $166.50 to $175.50 and feeder steers from 809 to 846 pounds brought $167 to $168. Medium and Large 1 feeder heifers weighing 551 to 586 pounds brought $164 to $178 and feeder heifers from 651 to 681 pounds brought $160 to $169.

Estimated cattle slaughter is 124,000 head, down 1,000 on the week but up 6,000 on the year.

Lean hog futures were mixed, with nearby months down and deferred contracts up, adjusting spreads. The session’s fundamentals were mixed, with pork up at midday and cash sharply lower during the session. August was down $1.47 at $117.22 and October was $2.20 lower at $94.12.

Cash hogs closed lower on Monday. Processors were mostly aggressive last week in their procurement efforts. Demand for US pork has been relatively strong on the global market, but there are long-term concerns which pressures price. The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct are $1.29 lower with a weighted average of $117.19; the Iowa/Minnesota had a weighted average of $122.80; the Western Cornbelt a weighted average of $122.78; the Eastern Cornbelt was not reported due to confidentiality.

At Illinois, slaughter sows are $1 higher at $55 to $67, with light demand for light offerings. Barrows and gilts are steady at $74 to $83. Boars are ranging from $10 to $55.

Pork values closed higher, up $1.85 at $127.82. Bellies were up more than $8; ribs and hams were higher; butts, picnics, and loins were lower.

Estimated hog slaughter is 450,000, up 1,000 on the week but down 17,000 on the year.