Market News

Cash hogs higher, lean futures were lower

The Fed Cattle Exchange Internet Auction on Wednesday had 5,448 head listed and 1945 head were sold. 1 to 9 day delivery, 355 head, weighted average price of 131.68. 1-17 day delivery, 158 head, weighted average of 129.89. 17 to 30 day delivery, 1394 head with a weighted average of 125.42. Holstein steers with a 1-17 day delivery, 40 head at 93.50. Last week’s weighted average price was 128.62 on just 701 head. Feedlot country remains at a standstill on Wednesday. A few asking prices have been heard of in parts of the South around 134.00 to 135.00 live. The cattle kill was estimated at 116,000 head, 1,000 more than last week, and 5,000 greater than last year.

Boxed beef cutout values ended the day steady to weak on light to moderate demand and offerings. Choice beef .17 higher at 219.18, and select 205.72, down .55.

Chicago Mercantile Exchange live cattle contracts settled .30 to 1.12 higher. The market had tried to keep up with the early triple digit gains in the feeder cattle market before they ended off the day’s highs. Additional interest is likely to move into the complex through the end of the week as cash markets develop and additional contract highs are set.

Feeder cattle contracts at one point reached $3.00 per hundredweight higher in late summer contracts with the focus on long term supply tightness a possibility in both live cattle and feeder cattle markets. At one point commercial buyer interest flooded into the market in the last week of April. The market was unable to hold on to the triple digit gains and settled off the day’s highs from just .22 to .72 higher.

Ozarks Regional Stockyards at West Plains, Missouri had receipts of 3825 cattle on Tuesday. Compared to last week, steer and heifer calves weighing less than 500 pounds were steady to 5.00 lower, with heavier weight calves 2.00 to 5.00 higher. Yearlings were lightly tested, however undertones were steady to good. Demand was good on a moderate to heavy supply. Feeder steers medium and large 1 averaging 565 pounds averaged 168.23. Heifers weighing 520 pounds brought 145.10.

Lean hogs settled .70 to 2.42 higher with triple digit gains from June 2017 to June 2018. Markets did close off the day’s highs as traders focused on the pressure in the morning cash hog markets and the pullback in the cutout reports. Traders continued to draw buyer support to the market through the end of the week with buyers looking for long term seasonal support.

Barrows and gilts in the Iowa/Minnesota direct trade closed .92 higher at 54.85 weighted average on a carcass basis, the West was up 1.10 at 54.95, and nationally the market was .82 higher at 54.46. Missouri direct base carcass meat price was steady from 47.00 to 49.00. Illinois direct trade hogs on a live basis was weak from 33.00 to 42.00. Sows were steady from 33.00 to 42.00.

The pork carcass cutout value was down .35 at 73.47 FOB plant.

The fact that the cash hog market so far this week seems to be slowly firming may suggest packers sense a tightening of numbers in the weeks ahead.

Wednesday’s hog slaughter was estimated by USDA at 442,000 head the same as last week, and 9,000 more than last year.

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