Market News

Cattle, hog futures lower heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle closed lower on profit-taking, watching direct business develop.  October live cattle closed $1.10 lower at $144.75 and December live cattle closed $.95 lower at $150.55.  September feeder cattle closed $1.85 lower at $185.27 and October feeder cattle closed $1.87 lower at $187.67. 

There was a moderate direct cash cattle trade that took place across cattle country on Thursday.  Live deals were at $142 in the South, about $2 higher than last week’s weighted averages.  Deals in the North were at $145 to $148 live and dressed deals in Nebraska were marked at $234, $4 higher than last week’s weighted average basis in Nebraska.  Look for asking prices to remain firm at $143 to $145 live in the South and $240-plus dressed in the North. 

At the Sheridan Livestock Auction in Nebraska, the USDA says there was a quality sale of fall feeder calves and yearlings.  Prices were higher compared to two weeks ago.  Receipts were down from two weeks ago.  Feeder supply included 70% steers and 99% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 852 to 892 pounds brought $175.50 to $185.50 and feeder steers 953 to 994 pounds brought $173.50 to $185.75.  Medium and Large 1 feeder heifers 821 to 839 pounds brought $174.75 to $185 and feeder heifers 941 pounds brought $175.25.

Boxed beef closed mixed with fairly light demand for moderate offerings.  Choice closed $.05 higher at $264.39 and Select closed $.42 lower at $237.47.  The Choice/Select spread is $26.92. Estimated cattle slaughter 126,000 head – up 1,000 on the week and up 8,000 on the year. 

Lean hog futures were pressured by the mostly sharply lower cash business during the session.  October lean hogs closed $4.75 lower at $93.30 and December lean hogs closed $3.25 lower at $85.17. 

Cash hog closed mostly sharply lower with a moderate negotiated run.  Processors didn’t have to bid up to move their desired numbers.  The industry continues to monitor the availability of market-ready hogs.  Long-term demand uncertainty continues to creep in and put pressure on prices. Barrows and gilts at the National Daily Direct closed $7.25 lower with a base range of $112 to $134 and a weighted average of $124.09; the Iowa/Minnesota closed $1.22 lower with a weighted average of $132.42; the Western Corn Belt closed $2.06 lower with a weighted average of $131.87.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $3 lower at $72.  Prices in Red Oak, Iowa are $3 higher at $77.  At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $69 to $81.  Barrows and gilts were steady with moderate demand for moderate offerings at $77 to $86.  Boars ranged from $55 to $58 and $10 to $20. 

Pork values closed higher – up $1.44 at $119.91.  Bellies and hams were both higher.  Loins, ribs, picnics, and butts were all lower. Estimated hog slaughter is 474,000 head – up 11,000 on the week and up 2,000 on the year.