Market News

Cattle, hog futures react to Friday’s USDA reports

At the Chicago Mercantile Exchange, live and feeder cattle were pressured following Friday’s Cattle on Feed report from the USDA.  October live cattle closed $.52 lower at $122.40 and December live cattle closed $.35 lower at $127.80.  October feeder cattle closed $2.57 lower at $154.77 and November feeder cattle closed $3 lower at $155.57. 

It was a very quiet start to the week for direct cash cattle trade activity.  Bids and asking prices have been slow to surface.  Showlists are mixed – higher in Texas, but lower in Kansas and Nebraska and Colorado.  Look for business to pick up at midweek or later. 

At midsession at the Oklahoma National Stockyards, compared to last week feeder steers were unevenly steady.  Feeder heifers were $2 to $5 higher.  Steer and heifer calves were unevenly steady.   The USDA says demand was moderate to good.  Receipts were down slightly on the week and up on the year.  Feeder supply included 64% steers and 68% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 608 to 648 pounds brought $145 to $159 and feeder steers 861 to 893 pounds brought $137.50 to $148.50.  Medium and Large 1 feeder heifers 578 to 598 pounds brought $138 to $149.50 and feeder heifers 854 to 687 pounds brought $140 to $151. 

Boxed beef closed lower on light to moderate demand for moderate offerings.  Choice closed $.62 lower at $302.70 and Select closed $.15 lower at $274.38.  The Choice/Select spread is $28.32. Estimated cattle slaughter is 119,000 head – even on the week and up 3,000 on the year. 

Lean hog futures ended the day higher, supported by Friday’s Hogs and Pigs numbers and the sharply higher wholesale values during the session.  October lean hogs closed $2.97 higher at $90.25 and December lean hogs closed $4.75 higher at $81.55. 

Cash hogs closed lower with a moderate negotiated run.  Processors continue to move their desired numbers without having to bid up.  Demand for US pork continues to be strong on the global market and domestically, which has been supportive of prices recently.  But, there are long-term demand concerns and that creates additional volatility in the markets.  Barrows and gilts at the National Daily Direct closed $1.19 lower with a base range of $72 to $81 and a weighted average of $75.74; the Iowa/Minnesota had a weighted average of $74.73; the Western Corn Belt had a weighted average of $74.24; the Eastern Corn Belt had a weighted average of $76.58.

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for light to moderate offerings at $52 to $68.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $25 to $30 and $15 to $20. 

Pork values closed higher – up $1.18 at $111.95.  Bellies are sharply higher.  Butts, ribs, picnics, and hams are higher.  Loins are sharply lower. Estimated hog slaughter is 478,000 head – up 15,000 on the week and down 12,000 on the year.