Broader markets pressure cattle, hog futures to start the week
September 21, 2020 By Meghan Grebner Filed Under: Closing Futures / Livestock Briefs, Livestock, Livestock Markets, Livestock Markets, Market News, Market News
At the Chicago Mercantile Exchange, live cattle closed lower on profit-taking and broader market pressure. Feeder cattle were mostly lower on the same factors. October live cattle closed $.65 lower at $106.70 and December live cattle closed $1.265 lower at $110.60. September feeder cattle closed $.20 higher at $141.07 and October feeder cattle closed $.17 lower at $142.25.
This week’s direct cash cattle trade activity started the week quietly. Showlists appear to be somewhat smaller in Texas and lower in Kansas, and Nebraska/Colorado. Bids and asking prices have yet to be established. It’s likely the bulk of this week’s business will be delayed until Wednesday or later.
At mid-session, at the Oklahoma National Stockyards, compared to last week feeder steers under 800 pounds were $1 to $2 lower and over 800 pounds were $2 higher. Feeder heifer sunder 700 pounds were $1 to $3 lower and over 700 pounds were steady to $2 higher. Weaned steer and heifer calves were lightly tested. The USDA says demand was moderate to good. Receipts were down on the week and the year. Feeder supply included 61 percent steers and 60 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 703 to 747 pounds brought $138 to $146.50 and feeder steers 800 to 836 pounds brought $136.50 to $146. Medium and Large 1 feeder heifers 650 to 691 pounds brought $134 to $137 and feeder heifers 701 to 728 pounds brought $130.50 to $138.50.
Boxed beef closed firm to higher on moderate demand for light offerings. Choice closed $.58 higher at $216.22 and Select is $1.88 higher at $205.82. Estimated cattle slaughter is 120,000 head – even on the week and up 5,000 on the year.
Lean hog futures ended the day lower on profit-taking and pressure from the broader markets. October lean hogs closed $.90 lower at $65.60 and December lean hogs closed $1.97 lower at $61.55.
Cash hogs closed steady to higher with solid negotiated purchases. The cash hog markets continue to move based on the supply and demand situation. There’s been some optimism that demand for US pork will see a big boost on both the global market and domestically. That helps to provide some price support. But the continued big slaughter runs, and ample supplies of market-ready barrows and gilts make it very difficult for prices to turn higher for an extended period of time. Barrows and gilts at the National Daily Direct closed $.13 higher with a base range of $55 to $64.75 for a weighted average of $61.12; the Iowa/Minnesota closed $1.09 higher for a weighted average of $62.59; the Western Corn Belt is $1.19 higher for a weighted average of $62.58. The Eastern Corn Belt is not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $28. At Illinois, slaughter sow prices were steady with good demand for moderate offerings at $11 to $23. Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $35 to $41. Boars ranged from $1 to $3.
Pork values closed sharply higher – up $2.56 at $90.09. Hams closed more than $11 higher. Bellies and ribs were higher to sharply higher. Butts, picnics, and loins were weak to sharply lower.
Estimated hog slaughter is 485,000 head – down 1,000 on the week and up 41,000 on the year. Friday’s hog slaughter has been revised to 459,000 head.
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