Market News

Lean hog futures start the week mostly higher

At the Chicago Mercantile Exchange, live cattle ended the day mixed on spread trade and waiting for the week’s direct business to develop.  Feeder cattle were higher on the day’s lower move in corn.  August live cattle closed $.35 lower at $99.65 and October live cattle closed $.37 lower at $104.20.  August feeder cattle closed $1.35 higher at $137.05 and September feeder cattle closed $.75 higher at $137.07. 

Direct cash cattle trade activity started the week quietly.  Bids have yet to be established, but there are a few asking prices that have surfaced in the North at $101 live and $162 dressed.  If this week’s business follows the recent trend, it’s likely a light to moderate trade will develop just about every day.  Showlists this week are mixed, lower in Kansas and Texas, but higher in Nebraska and Colorado. 

At Midsession at the Oklahoma National Stockyards, compared to last week feeder steers sold $6 to $8 higher and feeder heifers were $2 to $4 higher.  Steer and heifer calves were too lightly tested, but there was a higher undertone noted.  The USDA says demand was good.  Receipts were up on the week and the year.  Feeder supply included 53 percent steers and 76 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 704 to 796 pounds brought $135 to $147.50 and feeder steers 804 to 848 pounds brought $132 to $142.  Medium and Large 1 feeder heifers 654 to 687 pounds brought $119 to $137 and feeder heifers 703 to 743 pounds brought $120 to $134. 

Boxed beef closed lower on light demand for moderate offerings.  Choice closed $1.24 lower at $203.26 and Select closed $2.41 lower at $191.88.  The Choice/Select spread is $11.38.  Estimated cattle slaughter is 118,000 head – up 3,000 on the week and down 2,000 on the year.  Friday’s cattle slaughter has been revised to 116,000 head and Saturday’s revised to 67,000 head. 

Lean hog futures ended the day mixed, mostly higher on spread trade and support from the higher wholesale values during the session.  July lean hogs closed $.70 higher at $46.67 and August lean hogs closed $1.40 higher at $51.27. 

Cash hogs closed mixed with solid negotiated numbers.  The availability of market-ready hogs is more than ample and daily slaughter totals continue to push higher.  That’s helping to keep the supply chain flowing.  But as more pork is coming online, there is more pressure from the demand picture to pick up.  The industry is still optimistic demand both domestically and globally will remain strong, helping to provide some price support.  Barrows and gilts at the National Daily Direct closed $.45 higher with a base range of $26 to $34 for a weighted average of $30.45; the Iowa/Minnesota closed $.75 lower for a weighted average of $29.14; the Western Corn Belt closed $.75 lower for a weighted average of $29.13; the Eastern Corn Belt closed $.62 higher for a weighted average of $31.20. 

Butcher hog prices at the Midwest cash markets are steady at $20.  At Illinois, slaughter sow prices were steady with good demand for moderate to heavy offerings at $9 to $20.  Barrow and gilt prices were firm with moderate to good demand for moderate to heavy offerings at $14 to $22.  Boars ranged from $2 to $5. 

Pork values closed lower – down $1.43 at $67.52.  Ribs are sharply lower.  Hams, bellies, and loins are weak to lower.  Butts are steady and picnics closed higher.  Estimated hog slaughter is 454,000 head – up 2,000 on the week and up 43,000 on the year.  Friday’s hog slaughter has been revised to 460,000 head and Saturday’s revised to 276,000 head.