Market News

Back-to-back days of higher prices for cattle, hog futures

At the Chicago Mercantile Exchange, live and feeder cattle were higher, supported by the recent strength in boxed beef prices.  Feeders found additional support from the lower move in corn.  December lives closed $.57 higher at $149.7 and February lives closed $.57 higher at $152.77.  November feeders closed $1.42 higher at $177.82 and January feeders closed $1.95 higher at $179.20. 

It was another quiet day for direct cash cattle business.  Bids remain slow to surface.  Asking prices in the South were at $147 to $148 live, while the North remained quiet.  Look for significant trade volume to develop in the back half of the week. 

At the Joplin Regional Stockyards in Missouri, compared to last week lighter weight feeder steers were steady to $4 higher and heavier weights were $2 to $5 lower.  Feeder heifers were mostly steady to $4 lower.  The USDA says persistent lack of rainfall and intensifying drought conditions are forcing some producers to move cattle sooner than normal.  While quality cattle are in good demand, unweaned, non-vaccinated bull calves are less desirable.  Receipts were down on the week and the year.  Feeder supply included 44% steers and 49% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 556 to 591 pounds brought $176 to $186 and feeder steers 702 to 749 pounds brought $170.50 to $180.  Medium and Large 1 feeder heifers 608 to 647 pounds brought $161 to $162.50 and feeder heifers 708 to 733 pounds brought $158.75 to $164. 

Boxed beef closed higher with solid demand for solid offerings.  Choice closed $2.64 higher at $250.78 and Select closed $1.67 higher at $221.28.  The Choice/Select spread is $29.50. Estimated cattle slaughter was 128,000 head – even on the week and up 7,000 on the year. 

Lean hog futures closed higher, supported by strong cash prices.  December lean hogs closed $1.52 higher at $86.47 and February lean hogs closed $1.82 higher at $87.80. 

Cash hog closed sharply higher with a big negotiated run.  Processors are in this pattern of a couple of days of large purchases at sharply higher prices and then backing off their procurement efforts.  That trend appears to continue into this week.  The industry is also watching the availability of market-ready hogs.  And while demand has been strong, there are concerns that long-term global economic slowdowns could impact demand and weaken prices. Barrows and gilts at the National Daily Direct closed $7.61 higher with a base range of $81 to $99 with a weighted average of $93.85; the Iowa/Minnesota closed $3.37 higher and the Western Corn Belt closed $3.80 higher, both had a weighted average of $96.57; the Eastern Corn Belt had no comparison but a weighted average of $90.82. 

Butcher hog prices at the Midwest cash markets were steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $59 to $71.  Barrows and gilts were steady with moderate demand for moderate offerings at $58 to $68.  Boars ranged from $39 to $41 and $9 to $19. 

Pork values closed lower – down $.83 at $102.67.  Hams, picnics, and bellies were all lower.  Butts, ribs, and loins were higher. Estimated hog slaughter was 490,000 head – up 1,000 on the week and up 10,000 on the year.