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Cattle, hog futures higher at midweek

At the Chicago Mercantile Exchange, live cattle were mostly higher and feeders were higher watching direct cash business develop.  August live cattle closed $.20 higher at $136.87 and October lives were unchanged at $141.27.  August feeder cattle closed $1.22 higher at $180.80 and September feeders closed $1.55 higher at $183.07. 

An active day for direct cash cattle business.  Live deals in the South were at $137, steady with last week’s weighted averages.  In the North, deals in Nebraska were at $144 live and $230 dressed, about $2 below last week’s weighted average basis in Nebraska.  Asking prices held firm at $139 to $140 live in the South and $235 dressed in the North.  Some additional business will likely take place over the balance of the week. 

At the Hub City Livestock Auction in South Dakota, there wasn’t an accurate price trend available, but higher undertones were noted on both steers and heifers.  The USDA says demand was good to very good for the day’s offerings.  Quality varied, especially on packages, from plain to attractive.  Flesh was mostly moderate to moderate plus.  The market was active.  Receipts were down on the week and the year.  Feeder supply included 72% steers and 98% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 912 to 949 pounds brought $179 to $181.50 and feeder steers 985 to 997 pounds brought $156 to $167.25.  Medium and Large 1 feeder heifers 850 to 876 pounds brought $153 to $156.50 and feeder heifers 952 to 968 pounds brought $145.50 to $154.50. 

Boxed beef closed lower on light demand for moderate offerings.  Choice closed $.46 lower at $268.05 and Select closed $.91 lower at $241.26.  The Choice/Select spread is $26.79. Estimated cattle slaughter 126,000 head – even on the week and up 7,000 on the year.

Lean hog futures ended the day higher, supported by strong pork values during the session.  August lean hogs closed $1.50 higher at $110.50 and October lean hogs closed $.95 higher at $93.55.

Cash hogs closed mixed with another huge negotiated run.  Processors were able to move their desired numbers without having to bid up and get aggressive in their procurement efforts.  While demand has been strong on the global markets, there are long-term concerns which keeps pressure on prices.  The industry continues to monitor the availability of market-ready hogs.  Barrows and gilts at the National Daily Direct closed $.02 lower with a base range of $108 to $126 and a weighted average of $122.42; the Iowa/Minnesota closed $.60 higher with a weighted average of $124.41; the Western Corn Belt closed $.57 higher with a weighted average of $124.41; the Eastern Corn Belt closed $3.24 lower with a weighted average of $118.29.

Butcher hog prices at the Midwest cash markets are steady at $80. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $42 to $54.  Barrows and gilts were steady with moderate demand for moderate offerings at $74 to $83.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values closed higher – up $.81 at $118.28.  Loins and picnics led the way higher.  Bellies and hams were also higher.  Ribs and butts were lower. Estimated hog slaughter is 454,000 head – down 18,000 on the week and down 9,000 on the year.  Tuesday’s hog slaughter has been revised to 451,000 head.