Market News

Hog futures up, supported by pork trade

Chicago Mercantile Exchange live cattle futures were mostly lower in pretty light pre-holiday trade, watching corn, the distribution of this week’s direct showlist, and the wholesale market. August was down $.55 at $115.75 and October was $.45 lower at $114.75.

Feeder cattle futures were sharply lower, pressured by the higher trade in corn, soybean meal, and feed wheat. August was down $1.82 at $146.10 and September was $1.60 lower at $146.42.

Direct cash cattle markets are quiet and will probably stay that way until at least Wednesday. The big feature was the distribution of this week’s showlist, but with the holiday, the size of this week’s supply may not be fully realized until the second half of the week. This week’s showlist generally looks larger than last week, especially in Nebraska. Bids and asking prices are not yet defined.

Last week’s business was mostly at $119 on the live basis in the South, mainly down $3 on the week, and $189 to $190 on the dressed basis in the North, about $4 to $5 lower than the prior week’s weighted average. DTN says formula totals were mixed, higher in Kansas and Texas, but lower in Nebraska, and trade volume totals were mixed, also smaller in Nebraska, but larger in Kansas and Texas.

Boxed beef closed sharply lower on light to moderate demand and heavy offerings. Choice was down $1.84 at $222.89 and Select was $.97 lower at $207.45. The estimated cattle slaughter of 108,000 head was down 9,000 on the week with no comparison to last year.

The USDA reports last week in Nebraska, compared to the previous week, feeder cattle were $2 to $6 higher with 500 pound fall calves steady and feeder heifers gaining $5 to $10. The USDA says most of the week’s offering was off of summer grass and most of the fall calves were long time weaned. Demand was good despite the volatility in futures and drop in wholesale prices. Total receipts were 9,747 head, up on the week and the year. 63% of the state’s offering were steers and 83% of the run weighed more than 600 pounds. Dry weather is having an impact on pastures and rangelands. 700 to 800 pound feeder steers sold at $151 to $181.25 and more than 1,400 head of steers weighing an average of 924 pounds brought $147.75 to $152.35. 600 to 700 pound heifers ranged from $149 to $172.75 and 700 to 800 pound heifers were reported at $135 to $159.25.

Lean hog futures were higher, supported by the higher midday pork and continued expectations for good near term demand cancelling out some of the large available supply of pork. July was up $.07 at $90.70 and August was $.65 higher at $84.40.

Cash hogs were mixed. Business was relatively limited, with most packers keeping a pretty light kill schedule ahead of the 4th and trade expected to really get going Wednesday. A big Saturday kill is probably a pretty safe bet at this point.

Iowa/Southern Minnesota direct barrows and gilts closed $.48 higher at $82 to $88.50 for a weighted average of $88.01, the Western Cornbelt was up $.47 at $82 to $88.50 with an average of $87.87, and national direct business was $.49 higher at $82 to $88.50 for an average of $86.46. Butcher hogs at the Midwest cash markets were not tested, due to the holiday. Missouri direct butchers were steady to $1 lower at $79 to $81 on light to moderate supply and demand. Sows were steady to $2 higher at $40 to $50. Illinois direct sows were steady at $49 to $61 on good demand for light offerings. Barrows and gilts were steady at $59 to $62 on good demand for moderate offerings. Illinois boars ranged from $10 to $40.

The pork carcass cutout closed $1.40 higher at $104.32. All primals were firm to higher. The estimated hog slaughter was 366,000 head, 69,000 less than a week ago with no comparison to a year ago. Friday’s hog slaughter was revised 7,000 head lower to 414,000, putting last week’s total kill at 2,185,000 head.