Market News

Wholesale pork lower on drop in bellies

Chicago Mercantile Exchange live cattle futures were modestly lower on a lack of follow through buying after some attempts at higher trade, as the market gets ready for this week’s widespread direct business. August was down $.27 at $112.47 and October was $.52 lower at $110.60.

Feeder cattle were down modestly, following the lead of the live pit throughout the session, mostly ignoring the weak corn. August was $.22 lower at $146.02 and September was down $.45 at $146.65.

Direct cash cattle markets were quiet, but packers may be short bought after last week and inquiry did improve in some of the major feeding areas. Bids were reported at $115 to $116 on the live basis and $183 and $185 dressed, all in Nebraska or Colorado. Asking prices started around $120 live and $190 dressed. Widespread business is expected to wait until at least after Wednesday’s Fed Cattle Exchange activity. DTN did report a few hundred head sold in Iowa at $185 on the dressed basis.

Boxed beef closed modestly lower on light to moderate demand and offerings. Choice was down $.47 at $202.25 and Select was $.14 lower at $196.86. The estimated cattle slaughter of 119,000 head was unchanged from the previous week and up 6,000 from last year.

At the Sedalia-Central Missouri Sales Company feeder cattle auction Tuesday, there was no recent comparable sale, but receipts were up on the year. The USDA says there was a nice run of yearling cattle, with moderate to good demand for a heavy supply. 52% of the offering were heifers and 94% of the total run weighed more than 600 pounds. Medium and Large 1 feeder steers averaging 809 pounds ranged from $146.10 to $149.25 and Medium and Large 1-2 steers averaging 835 pounds sold at $143.50 to $144. Medium and Large 1 feeder heifers weighing 720 to 790 pounds were reported at $134.85 to $140 and heifers averaging 822 pounds brought $133.60 to $135.

Lean hog futures were mostly firm on spread trade and the discount to the cash index. It was an up and down day for hogs, with periodic pressure from the steady to lower cash and lower midday move in pork. August was up $.12 at $83.52 and October, the only active contract in the red, was down $.37 at $67.75.

Cash hogs closed mostly steady to higher. The major direct markets rallied, as buyers apparently felt the need to raise bids after the slow start to the week. Export and domestic demand continue to be strong, and are expected to stay that way, even with record pork production and the probability of a steady increase in market ready numbers in the coming weeks.

Iowa/Southern Minnesota direct barrows and gilts closed $.76 higher at $72 to $82 for a weighted average of $80.88, the Western Cornbelt was $.65 higher at $72 to $82 with an average of $80.67, and national direct business was $1.05 higher at $72 to $82 for an average of $79.78. Butcher hogs at the Midwest cash markets were steady at $51 to $60. Missouri direct butchers were steady to $5 lower at $70 to $74 on light to moderate supply and demand. Sows were steady to $3 higher at $58 to $62. Illinois direct sows were firm at $60 to $76 with very good demand for moderate to heavy offerings. Barrows and gilts were firm at $48 to $56 with light to moderate demand for moderate offerings. Boars ranged from $10 to $38.

Pork closed $2.13 lower at $95.43. Ribs were up $2.89, but bellies were down $9.25. The estimated hog slaughter of 446,000 head was steady on the week and up 11,000 on the year.