Market News

Hogs down on steady to lower cash

Chicago Mercantile Exchange live cattle futures were lower on cash pressure from Wednesday’s direct trade. Losses were limited by oversold signals and some signs the beef market may be firming. August was down $.25 at $112.47 and October was $.37 lower at $108.52.

Feeder cattle futures were lower, except for the now expired August contract, on the lower grain trade, which could encourage higher weights and increased production. August was up $.07 at $146.72 and September was down $1.20 at $141.80.

Direct cash cattle markets were quiet and business may be wrapped up for the week after Wednesday. Live business was mostly at $115, down $3 on the week, and dressed trade was primarily at $182, $5 lower than last week’s weighted average in Nebraska. Activity in most major feeding areas was light to moderate, so while there may still be some clean-up trade, again, the bulk of the week’s business is probably wrapped up. DTN did report very light trade in Nebraska at $179 dressed.

Boxed beef closed firm to modestly higher on light to moderate demand and light offerings. Choice was up $.04 at $200.36 and Select was $.42 higher at $194.15. The estimated cattle slaughter was 113,000 head, unchanged on the week and up 2,000 on the year.

Wednesday, at the Bassett Livestock Auction in Nebraska, compared to the previous test two weeks ago, 800 and 950 pound steers were $4 to $5 lower and 750 to 800 pound heifers were $2 to $4 lower. Demand was good with several buying. 100% of the offering were feeder cattle, almost 95% weighed more than 600 pounds, and 62% were steers. 800 to 900 pound feeder steers sold at $138 to $149 and 900 to 1,000 pounders ranged from $132 to $142.75. 800 to 900 pound feeder heifers brought $129.75 to $140 with 900 to 980 pound heifers at $129.50 to $135.75.

Lean hog futures were lower on the lower trade at the direct markets, technical selling, and lower grain prices. October was down $1.62 at $58.70 and December was $1.57 lower at $54.47.

Cash hog trade was steady to lower. Market ready numbers are ample with buyers apparently pulling supplies ahead, profit margins are good, and there’s plenty of pork available right now. Iowa/Southern Minnesota barrows and gilts closed $.58 lower with a weighted average of $61.98, the Western Cornbelt was down $.66 at $61.91, and national direct trade was $.53 lower at $61.68. Butcher hogs at the Midwest cash markets were steady at $37 to $50. Missouri direct butcher trade was steady at $54 to $60 on light to moderate supply and demand. Missouri sows were steady at $40 to $51. Illinois direct sows were mostly steady at $42 to $54 with moderate demand for light to moderate offerings. Boars ranged from $11 to $25.

The pork cutout closed $.92 higher at $76.53. All primals were firm to sharply higher. The estimated hog slaughter was 426,000 head, down 3,000 from both last week and last year.

The USDA says commercial red meat production during July was 3.87 billion pounds, down 4% on the year. Beef, at just over 2 billion pounds, was 1% lower, with the slaughter also down 1% and the average live weight 1 pound lighter. Pork production was 1.8 billion pounds, 8% less than last year, with the slaughter 7% lower and average live weight down 2 pounds. So far this year, beef production is 4% ahead of last year and pork is down slightly.