Hog futures supported by strong cash and wholesale business
At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct cash business. August live cattle closed $1.62 higher at $178.82 and October live cattle closed $1.77 higher at $181.72. August feeder closed $.90 higher at $247.15 and September feeder cattle closed $.82 higher at $250.30.
It was another quiet day for direct cash cattle business. Bids did not surface. Asking prices were around $180 to $182 live in the South, while the North was quiet. Significant trade volume will likely hold out until sometime in the back half of the week.
At the Joplin Regional Stockyards in Missouri, feeder steers were $8 to $12 higher and feeder heifers were $4 to $8 higher. The sale included a yearling special with 1,500 head of 8-weight steers. The USDA says quality cattle were met with strong demand and sold for premium prices. Receipts were up on the week and the year. Feeder supply included 56% steers and 56% of the offering was over 600 pounds. Medium and Large 1 feeder steers 601 to 643 pounds brought $250 to $281 for an average price at $264.05 and feeder steers 806 to 842 pounds brought $231 to $243 for an average price of $238.85. Medium and Large 1 feeder heifers 601 to 649 pounds brought $227 to $251 for an average price of $239.95 and feeder heifers 700 to 749 pounds brought $218 to $234 for an average price of $228.22.
Boxed beef closed lower on light demand for solid offerings. Choice was $1.67 lower at $312.12 and Select closed $2.09 lower at $280.24. The Choice/Select spread is $31.88. Estimated cattle slaughter was 128,000 head – up 2,000 on the year. Monday’s cattle slaughter was revised to 122,000 head.
Lean hog futures closed higher, supported by strong cash and wholesale business. August lean hogs closed $3.40 higher at $97.57 and October lean hogs closed $1.80 higher at $82.97.
Cash hogs closed sharply higher with a solid negotiated run. Processors ramped up their procurement efforts Tuesday and bid up to move needed numbers. Demand remains the story for the cash hog market. U.S. pork continues to be in relatively high demand on the global market, and domestic demand has also been strong. Both are supportive to prices. The industry is keeping a close eye on the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $2.50 higher with a base range of $89 to $102 and a weighted average of $100.39; the Iowa/Minnesota closed $3.05 higher with a weighted average of $100.59; the Western Corn Belt closed $2.11 higher with a weighted average of $100.68; the Eastern Corn Belt closed $2.50 higher with a weighted average of $99.09.
Butcher hog prices at the Midwest cash markets are steady at $66. At Illinois, slaughter sow prices are steady with moderate demand for heavy offerings at $28 to $39. Barrows and gilts are steady with moderate demand for moderate offerings at $52 to $62. Boars ranged from $15 to $25 and $5 to $10.
Pork values closed sharply higher – up $4.04 at $112.16. Bellies were sharply higher. All of the primals, but butts, were higher. Estimated hog slaughter was 470,000 head – up 18,000 on the year. Monday’s hog slaughter was 460,000 head.