Market News

Cattle, hog futures finish lower

Chicago Mercantile Exchange live cattle futures were lower on demand uncertainties and Monday’s bearish USDA cold storage report. The trade’s also watching the direct cash markets, waiting to see how business develops this week. Live and feeder cattle both made attempts at mixed to higher trade, but were unable to follow through. August was down $.17 at $113.25 and October was $.62 lower at $109.72.

Feeder cattle were lower on demand concerns and pre-direct cash trade position squaring. Lower corn and soybean meal prices were largely ignored. August was down $.57 at $146.45 and September was $.50 lower at $143.92.

Most direct cash cattle markets were quiet Tuesday. DTN did report very light, scattered business in Iowa at $115 Live and Nebraska at $183 Dressed. Asking prices held around $120 in the South and $190 in the North. Bids were reported at $115 Live and $183 Dressed, but packer inquiry was light overall and widespread business is not expected until the second half of the week. This week’s showlist is smaller than last week.

Boxed beef closed lower on light to moderate demand and offerings. Choice was down $.75 at $200.39 and Select was $.21 lower at $193.66. The estimated cattle slaughter was 113,000 head, unchanged from a week ago and up 4,000 from a year ago.

At the Oklahoma National Stockyards Monday, compared to the previous week, feeder steers and heifers were $4 to $6 lower and steer and heifer calves were firm, where comparable sales were reported. Demand was called light to moderate and the USDA says last week’s lower futures prices pressured the trend. 600 to 700 pound feeder steer calves brought $152 to $162.50 and 700 to 800 pounders ranged from $140 to $149.75. 500 to 600 pound feeder heifer calves sold at $143 to $150 and 700 to 800 pounders were reported at $128.75 to $140.50.

Lean hog futures were lower on cash and wholesale pressure. Contracts are technically oversold and most are at a discount to cash, but weren’t able to generate much buying interest after midday. October was $.62 lower at $60.52 and December was down $.52 at $56.52.

Cash hogs were mostly steady to weak. Market ready numbers are ample. This week’s slaughter is seen at around 2.3 million head, which would be up 2% on the year and continuing the recent pattern of stepped up business. Dressed hog weights for the week ending August 6th were 208 pounds, down a pound on the year.

Iowa Southern Minnesota barrows and gilts closed $.22 lower with a weighted average of $63.20, the Western Cornbelt was down $.18 at $63.18, and National Direct trade was up $.31 at $62.71. Butcher hogs at the Midwest cash markets were steady at $39 to $50. Missouri Direct butchers were steady at $54 to $60 on light to moderate supply and demand. Missouri sows were steady to $2 higher at $38 to $51. Illinois Direct sows were steady at $43 to $55, with boars selling at $11 to $25.

The pork cutout closed $.09 lower at $75.71. Loins, picnics, and bellies were lower. The estimated hog slaughter was 435,000 head, up 2,000 on the week and 13,000 on the year.