Market News

Cash hogs close higher, cash cattle trade sluggish

Chicago Mercantile Exchange live and feeder cattle futures were lower on profit taking, getting ready for this week’s direct business. Feeders had additional pressure from the mostly firm move in corn. April live was down $.22 at $168.12 and June was $.90 lower at $161.22. April feeders were $1.87 lower at $198.95 and May was down $2.10 at $203.15.

Monday was a very quiet day with the cash cattle trade at a virtual standstill. Bids and asking prices are not established. Significant trade volume will likely be delayed until the second half of the week. New showlists appear to be higher in all major feeding areas.

At the Joplin Regional Stockyards in Missouri, feeder steers sold $4 to $9 higher compared to last week, and feeder heifers sold $4 to $7 higher. Receipts were up nearly a thousand on the week and over 1,500 on the year. Feeder supply included 55% steers and 47% of the offering was over 600 pounds. Medium and Large 1 feeder steers 500 to 548 pounds brought $237 to $264 and feeder steers 808 to 832 pounds brought $184 to $192. Medium and Large 1 feeder heifers 551 to 596 pounds brought $198 to $220 and feeder heifers 795 pounds brought $182.

Boxed beef closed higher. Choice was $3.02 higher at $285.09 and Select was up $3.46 at $274.18. The Choice/Select spread is $10.91.

Estimated cattle slaughter was 124,000 head – down 1,000 on the week and up 3,000 on the year.

Lean hog futures were mixed on spread adjustments, the conflicting cash and wholesale fundamentals during the session, and long-term demand questions. April was down $.72 at $74.52 and June was $.20 lower at $91.42.

Cash hog business was steady to higher with light negotiated numbers for the major direct markets. Nationally, buyers raised bids to move the needed near-term numbers and the lack of change in negotiated sales from open to close could be a sign of tighter supplies and more higher bids this week. Still, recent inconsistency in wholesale pork trade and questions about near-term industry expansion against long-term inventory forecasts continue to linger in the background.

Barrows and gilts at the National Daily Direct were $.76 higher with a base range of $72.50 to $75 and a weighted average of $72.66. The Iowa/Minnesota, Western Corn Belt, and Eastern Corn Belt were not reported due to confidentiality.

Butcher hogs are called steady. Most buyers are expected to hold bids, getting a look at the availability of market ready numbers, demand, and potential movement disruptions due to weather in some areas.

At Illinois, slaughter sows were down $1 with light demand for moderate offerings at $40 to $52. Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $58. Boars were $15 to $25 and $8 to $15.

Pork values closed higher – up $1.04 at $78.32. Bellies were sharply higher. Picnics, butts, and loins were higher. Hams and ribs were lower.

Estimated hog slaughter was 485,000 head – down 1,000 on the week and up 7,000 on the year.