A strong start to the week for hog futures
At the Chicago Mercantile Exchange, live and feeder cattle were lower following last week’s On Feed report, watching the higher move in corn and waiting for cash business to develop. October live cattle closed $.75 lower at $144.50 and December live cattle closed $.45 lower at $150.52. September feeder cattle closed $.40 lower at $184.35 and October feeders closed $.30 lower at $186.47.
It was a quiet Monday for direct cash cattle business. Showlists this week are lower across all major feeding areas. Bids and asking prices didn’t surface on Monday and it’s likely the bulk of the week’s trade will be delayed until the latter half of the week.
At the Oklahoma National Stockyards, compared to last week feeder steers were $4 to $6 lower and feeder heifers were steady to $4 lower. Steer calves and heifer calves were unevenly steady. The USDA says demand was good to moderate. Receipts were up on the week and the year. Feeder supply included 61% steers and 48% of the offering was over 600 pounds. Medium and Large 1 feeder steers 705 to 743 pound brought $178 to $184.50 and feeder steers 802 to 828 brought $156.50 to $178.50. Medium and Large 1 feeder heifers 505 to 542 pounds brought $174 to $181 and feeder heifers 600 to 648 pounds brought $150 to $181.
Boxed beef closed higher with solid demand for light offerings. Choice closed $.24 higher at $264.52 and Select closed $.42 higher at $238.36. The Choice/Select spread is $26.16. Estimated cattle slaughter is 125,000 head – up 4,000 on the week and up 8,000 on the year.
Lean hog futures ended the day higher, supported by strong cash and wholesale business and contracts’ discount to cash. October lean hogs closed $.85 higher at $93.97 and December lean hogs closed $.32 higher at $84.47.
Cash hogs closed sharply higher with a solid negotiated run. Processors started the week aggressive in their procurement efforts and bid up to move their desired numbers. Demand for US pork on the global and domestic market have been strong, helping provide price support. All eyes are on the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $8.55 higher with a base range of $110 to $135 with a weighted average of $126.35; the Iowa/Minnesota closed $6.62 higher with a weighted average of $132.06; the Western Corn Belt closed $6.96 higher with a weighted average of $131.92; the Eastern Corn Belt had no comparison but a weighted average of $125.95.
Butcher hog prices at the Midwest cash markets are lower at $70. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $69 to $81. Barrows and gilts were steady with moderate demand for moderate offerings at $77 to $86. Boars ranged from $55 to $58 and $10 to $20.
Pork values closed higher – up $.46 at $117.61. Bellies were sharply higher. Ribs and picnics were higher. Butts, hams, and loins were all lower. Estimated hog slaughter is 478,000 head – up 36,000 on the week and up 39,000 on the year.