Market News

Cattle, hogs start the week negative

At the Chicago Mercantile Exchange, live and feeder cattle futures ended the day lower on weakening whole values, the continued lower cash trade, and concerns about increasing cattle weights.  October live cattle closed $.67 lower at $94.20 and December live cattle closed $.57 lower at $99.17.  September feeder cattle closed $.52 lower at $132.82 and October feeder cattle closed $1.07 lower at $129.82. 

Direct cash cattle trade is off to a slow start.  There were a handful of deals reported in the North at $97, but not near enough to establish a trend. Showlists this week are mixed – somewhat higher in Nebraska and Colorado, somewhat lower in Texas, and lower in Kansas.  Bids and asking prices have yet to surface.  If this week follows the trend of recent weeks, significant trade volume won’t develop until midweek or later. 

At Mid-Session at the Oklahoma National Stockyards receipts are up on the week and the year.  Compared to the most recent sale, feeder steers and heifers were $4 to $10 lower.  Steer and heifer calves were lightly tested with a sharply lower undertone noted.  The USDA says demand was light to moderate and quality was plain to average.  Feeder supply included 67 percent steers and 67 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 653 to 693 pounds brought $135 to $140.50 and feeder steers 705 to 747 pounds brought $131 to $137.  Medium and Large 1 feeder heifers 606 to 648 pounds brought $124.50 to $133.50 and feeder heifers 708 to 723 pounds brought $126 to $131. 

Boxed beef ended the day steady to weak on light to moderate demand and moderate to heavy offerings.  Choice closed $.36 lower at $226.95 and Select closed $.02 lower at $201.92.  The Choice/Select spread closed at $25.03.  Estimated cattle slaughter is 115,000 head – down 4,000 on the year. 

Lean hog futures ended the day lower on pressure from weak cash trade and wholesale values and long-term demand concerns.  October lean hogs closed $.90 lower at $62.60 and December lean hogs closed $2.52 lower at $59.95. 

Cash hogs closed lower with very strong negotiated purchase totals.  The market remains hopeful demand will increase for US pork on the global market but that hasn’t happened yet and with the ample supplies of market-ready hogs and the large slaughter runs adding more pork to an already saturated market – pork prices remain under pressure.  Trade talks with China are planned for an undisclosed date in October.  With the recent slide it the markets, any good news could provide a much-needed boost to the market.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.90 lower for a weighted average of $50.72; the Western Corn Belt closed $1.93 lower for a weighted average of $50.69; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.42 lower with a base range of $46 to $51.50 for a weighted average of $50.69. 

Butcher hog prices at the Midwest cash markets are steady at $36. 

Pork values are closed lower – down $1.41 at $71.91.  Bellies and ribs were sharply lower.  Picnics and loins were lower.  Butts closed weak.  Hams were higher.  Estimated hog slaughter is 485,000 head – up 27,000 on the year.