Hog futures supported by stronger cash business
At the Chicago Mercantile Exchange, live and feeder cattle were up ahead of the week’s direct cash business. August live cattle closed $2.22 higher at $175.50 and October lives closed $1.92 higher at $178.25. August feeders closed $.65 higher at $243.25 and September feeders closed $.90 higher at $246.52.
Direct cash cattle trade activity was relatively quiet. A few bids surfaced at $190 and $191 live in the North and asking prices weren’t established. Packer inquiry should continue to improve. But, significant trade volume isn’t expected to develop until the latter half of the week.
At the Joplin Regional Stockyards in Missouri, compared to two weeks ago feeder steers were $10 to $15 higher with light four-weight calves up to $28 higher. Feeder heifers were $15 to $25 higher, four-weight heifers were up to $30 higher. The USDA says supply was heavy with very good demand. Receipts were up on the week and the year. Feeder supply was 55% steers and 51% of the offering was over 600 pounds. Medium and Large 1 feeder steers 500 to 549 pounds brought $252 to $287 with an average price of $275.88 and feeder steers 601 to 649 pounds brought $240 to $262 with an average price of $252.21. Medium and Large 1 feeder heifers 600 to 649 pounds brought $223 to $247 and an average price of $230.57 and feeder heifers 700 to 745 pounds brought $210 to $232.50 and an average price of $221.57.
Boxed beef closed sharply higher with strong demand on moderate offerings. Choice was $7.21 higher at $321.40 and Select closed $2.71 higher at $299.44. The Choice/Select spread is $21.96. Estimated cattle slaughter was 125,000 head – down 1,000 on the week and the year.
Lean hog futures were supported by the sharply higher cash business. July lean hogs closed $4.17 higher at $88.32 and August lean hogs closed $2.87 higher at $84.50.
Cash hogs closed sharply higher with a monstrous negotiated run. Processors had to get aggressive in their procurement efforts and bid up to move needed numbers on Tuesday. Demand for US pork on the global market has been strong. And there is optimism domestic demand will see a boost as the summer grilling season gets into full swing. Both help to provide some price support. Barrows and gilts at the National Daily Direct closed $6.84 higher with a base range of $77 to $95 and a weighted average of $92.13; the Iowa/Minnesota closed $3.55 higher with a weighted average of $93.58; the Western Corn Belt closed $4.04 higher with a weighted average of $93.55; the Eastern Corn Belt had no comparison but a weighted average of $86.11.
Butcher hog prices at the Midwest cash markets were steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $10 to $20. Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56. Boars ranged from $15 to $25 and $5 to $10.
Pork values closed sharply lower – down $4.35 at $84.71. Bellies dropped more than $23. Hams, butts, and ribs were also lower. Loins and picnics were higher. Estimated hog slaughter was 469,000 head – down 11,000 on the week and down 7,000 on the year.