Market News

Hogs supported by higher pork, discount to cash

Chicago Mercantile Exchange live cattle futures were sharply higher on an oversold bounce ahead of this week’s widespread direct cash cattle trade. Fed Cattle Exchange business was essentially steady with last week, but another round of light activity really didn’t whet a lot of appetites. August was $2.20 higher at $117.27 and October was up $2.00 at $118.87.

Feeder cattle were sharply higher on oversold signals and position squaring ahead of widespread direct business. August feeders were up $2.90 at $154.50 and September was $2.80 higher at $154.45.

Direct cash cattle markets were mostly quiet. Some extremely light trade was reported Tuesday afternoon, but after another light week for Fed Cattle Exchange activity, widespread trade may even wait until after Friday’s USDA cattle on feed and inventory reports. DTN did report some regional sales in the North at $188 to $190 on the dressed basis, steady to $2 lower than last week’s weighted average. Asking prices are $120 to $122 on the live basis in the South and $192+ dressed in the North, with bids at $115 to $117 live and $186 to $187 dressed. The case of atypical BSE found in an 11 year old cow in Alabama isn’t expected to have an impact on cash or futures, because of the age of the cow and nature of the case.

Boxed beef closed mixed on moderate demand for heavy offerings. Choice was down $.32 at $207.73 and Select was up $.24 at $195.49. The estimated cattle slaughter of 117,000 head was 1,000 less than a week ago, but 5,000 more than a year ago.

In Fed Cattle Exchange trade, a total of 2,912 head were offered, 708 sold with a weighted average of $118.27. 626 head sold for 1 to 9 day delivery with an average of $118.30 and 82 head for 1 to 17 day delivery had an average of $118.00. The next event is scheduled for July 26th.

At the Oklahoma National Stockyards this week, feeder steers and heifers were $4 to $8 higher. Calves were lightly tested with a few sales $4 to $10 higher. The USDA says quality was better than last week and demand was good to very good for nearly all classes. 67% of the run were steers and 85% of the offering weighed more than 600 pounds. 600 to 700 pound Medium and Large 1 feeder steers ranged from $150 to $163.50 and 700 to 775 pound steers were reported at $145.50. Medium and Large 1 feeder heifers weighing 500 to 600 pounds sold at $150 to $159.50 and a load of heifers averaging 686 pounds brought $137.50.

Lean hog futures were higher on the higher midday pork and contracts’ discount to the cash index. There was also some spillover support from the sharply higher move in cattle. August was $2.07 higher at $82.57 and October was up $.92 at $68.80.

Cash hogs were steady to lower. Buyers continued this week’s efforts to move the needed numbers at mostly lower prices. The market is keeping an eye out for the expansion of available numbers and a seasonal top in wholesale business. The average Iowa/Southern Minnesota hog weight for the week ending July 15th was 276.8 pounds, down 1.2 on the week and 0.9 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $.63 lower at $81 to $85.75 for a weighted average of $85.27, the Western Cornbelt was down $.66 at $81 to $85.75 with an average of $85.21, and the Eastern Cornbelt was $.41 lower at $80 to $85 for an average of $84.41. National direct business was down $.77 at $80 to $85.75 with an average of $84.79. Butcher hogs at the Midwest cash markets were steady to $1 lower at $56 to $62. Missouri direct butchers were steady to $2 lower at $80 to $81 on light to moderate supply and demand. Sows were steady to $2 higher at $48 to $64. Illinois direct sows were firm at $60 to $68 with good demand for moderate to heavy supplies. Barrows and gilts were weak at $57 to $65 on good demand for moderate offerings. Boars ranged from $10 to $41.

Pork closed $.70 higher at $104.69. Ribs, bellies, picnics, and hams were higher. The estimated hog slaughter of 441,000 head was up 1,000 on the week and 16,000 on the year.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!