Hog mixed ahead of Thursday’s report
At the Chicago Mercantile Exchange, live and feeder cattle were higher, shrugging off lower cash and wholesale business. Feeders did the bulk of the heavy lifting Wednesday, finding support in the sharply lower move in corn. August live cattle closed $1.37 higher at $1783.87 and October live cattle closed $.95 higher at $177.02. August feeder cattle closed $1.75 higher at $240.25 and September feeders closed $1.75 higher at $243.72.
A relatively quiet day for direct cash cattle business following the light trade that took place on Tuesday. There were a handful of live deals in Iowa reported at $184, but not near enough business to establish a trend. Deals in parts of Kansas and Texas on Tuesday were at $178 live, about $2 lower than the previous week’s weighted averages.
At the Interstate Regional Stockyards in Missouri, feeder steers and heifers 400 to 600 pounds were steady to firm on comparable weights. Quality 5-weight steers and heifers were $5 higher. Steers 600 to 650 pounds sold with a sharply higher undertone on a very active market. The USDA says demand was moderate to good on light to moderate offerings of feeders. The best demand and overall quality were on steer calves 550 to 640 pounds. Receipts were up on the week and down on the year. Feeder supply included 45% steers and 24% of the offering was over 500 pounds. Medium and Large 1 feeder steers 550 to 592 pounds brought $265 to $290 for an average price of $280.89 and feeder steers 602 to 644 pounds brought $278.50 to $285 for an average price of $281.51. Medium and Large 1 feeder heifers 501 to 548 pounds brought $235 to $247.50 for an average price of $240.98 and feeder heifers 608 to 645 pounds brought $225 to $231 for an average price of $229.22.
At the Fort Atkinson Hay market in Iowa, prices were steady to higher with quality similar to recent offerings. CRP/Utility hay brought $105 to $115. Fair hay brought $115 to $145. Good quality hay brought $150 to $185 and premium quality hay brought $185 to $240.
Boxed beef closed lower on light demand for moderate offerings. Choice was $1.33 lower at $327.90 and Select closed $1.75 lower at $296.68. The Choice/Select spread is $31.22. Estimated cattle slaughter was 126,000 head – up 1,000 on the week and the year.
Lean hog futures were mixed, adjusting spreads ahead of Thursday’s Quarterly Hogs and Pigs report. July lean hogs closed $.15 higher at $94.27 and August lean hogs closed $.05 higher at $91.10.
Cash hogs closed lower with a fairly light negotiated run. Processors pulled back on their procurement efforts on Wednesday. This week appears to be a one-off in terms of business. The market has found support recently in the strong demand for US pork on the global market and the demand bump from the summer grilling season. The industry expects Thursday’s Quarterly Hogs and Pigs report to show a reduction in breeding inventory which could very well indicate tighter supplies moving forward. Barrows and gilts at the National Daily Direct closed $.30 lower with a base range of $83 to $97 and a weighted average of $94.32; the Iowa/Minnesota closed $.46 lower with a weighted average of $94.93; the Western Corn Belt closed $.44 lower with a weighted average of $94.91. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $68. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $25 to $35. Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62. Boars ranged from $15 to $25 and $5 to $10.
Pork values closed lower – down $1.08 at $99.08. Hams were sharply lower. Ribs and picnics were lower. Bellies, loins, and butts were all higher. Estimated hog slaughter was 450,000 head – even on the week and down 17,000 on the year.