Market News

Hog futures down on cash, wholesale pressure

Chicago Mercantile Exchange live cattle futures were sharply higher, supported by technical buying, while digesting last week’s slow to start direct cash business and watching the distribution of this week’s new showlist. August was $2.37 higher at $106.92 and October was up $1.27 at $108.65.

Feeder cattle were supported by the same factors as the live pit. August was up $1.65 at $152.37 and September was $1.37 higher at $152.45.

Direct cash cattle markets were at a standstill. The big features were a full assessment of last week’s late developing direct business and the distribution of this week’s showlist. Last week’s formula totals were mixed, smaller in Kanas, larger in Nebraska, and up sharply in Texas. Trade volume was also mixed, down sharply in Nebraska, lower for Kansas, and higher for Texas. Live sales last week were mostly at $110 to $111 with dressed business mainly at $173 to $175, all down on the week. This week, the showlist looks mixed, about steady overall, with more ready numbers in Colorado, Kansas, and Nebraska against fewer in Texas. The USDA’s Cattle on Feed and Inventory numbers are out Friday afternoon.

Boxed beef closed lower on light to moderate demand for moderate to heavy offerings. Choice was down $.38 at $203.76 and Select was $.70 lower at $195.67. The estimated cattle slaughter of 119,000 head was unchanged on the week and up 11,000 on the year.

At the Oklahoma National Stockyards feeder cattle sale Monday, steers were mostly $2 to $4 lower, while heifers weighing 600 to 750 pounds were $1 to $2 higher and heavier weights generally had a lower undertone in a limited test. The USDA says demand was moderate with mostly plain to average quality, but a few were called attractive. Receipts and demand declined during the day because of heat advisories. 63% of the feeder offering were steers and 74% of the run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds were reported at $153 to $160 and 700 to 800-pound steers sold at $145 to $155.25. Medium and Large 1 feeder heifers weighing 600 to 700 pounds ranged from $143.50 to $152.50 and 700 to 800-pound heifers brought $132 to $143.50.

Lean hog futures were lower on profit taking after Friday’s mostly sharply higher finish, along with the steady to lower cash during the session and weak midday pork. July expired at $79.75, down $.20, and August was $.95 lower at $69.20.

Cash hogs were steady to lower, with moderate closing negotiated numbers for the major direct markets. Buyers started the week with mostly lower bids, watching chain speed and the availability of market ready numbers, which may have seen the seasonal bottom. Even with that recent seasonal tightening, slaughter levels generally remained larger than a year ago putting a lot of pork on the market at a time when the industry is facing some serious demand uncertainties because of tariffs.

Pork closed $.45 lower at $83.37. Hams were weak, while loins and bellies were sharply lower. Butts, picnics, and ribs were higher. The estimated hog slaughter of 431,000 head was down 13,000 on the week, but up 14,000 on the year. Saturday’s kill was revised down to 26,000 head, putting last week’s total at 2.275 million.

Iowa/Southern Minnesota direct barrows and gilts closed $.60 lower at $67 to $74 with a weighted average of $73.19, the Western Cornbelt was down $.42 at $66 to $74 for an average of $73.18, and national direct business was $1.18 lower at $66 to $74 with an average of $73.08. Butcher hogs at the Midwest cash markets were steady to $2 lower at $48 to $50. Illinois direct sows were steady at $27 to $38 on light to moderate demand for moderate offerings. Barrows and gilts were $2 lower at $44 to $52 on moderate demand and offerings. Boars ranged from $8 to $32.