Another positive day for cattle, hog futures
At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, waiting for direct cash business to develop. There was also support from the recent higher moves in boxed beef and the lower move in corn. December lives closed $1.57 higher at $151.35 and February lives closed $1.47 higher at $154.25. November feeders closed $.25 higher at $178.07 and January feeders closed $.87 higher at $180.07.
A very light day for direct cash cattle trade. Live deals in the South were marked at $147 and dressed deals in the North was at $232. While business is underway it isn’t enough to establish a trend. Asking prices will likely be restated at $147 to $148 live in the South and $235-plus dressed in the North. Significant trade volume will likely take place in the back half of the week.
At the Kingsville Livestock Auction in Missouri, compared to last week, feeder steers were $6 to $8 lower. Feeder heifer calves under 500 pounds sold on a light test with a weak undertone. Heifers 500 to 700 pounds were steady to $4 lower and heifers over 700 pounds were steady to $5 higher. The USDA says buyer demand was moderate for a lighter sale supply of feeder cattle. Receipts were down on the week and the year. Feeder supply included 52% steers and 59% of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 579 pounds brought $181 to $196 and feeder steers 765 to 785 pounds brought $177.75 to $184. Medium and Large 1 feeder heifers 450 to 483 pounds brought $165 to $177 and value-added feeder heifers 727 pounds brought $179.
Boxed beef closed higher on strong demand for solid offerings. Choice closed $2.61 higher at $253.39 and Select closed $.91 higher at $222.19. The Choice/Select spread is $31.20. Estimated cattle slaughter was 127,000 head – down 1,000 on the week and up 4,000 on the year.
Lean hog futures ended the day higher supported by sharply higher cash business during the session. December lean hogs closed $.90 higher at $87.37 and February lean hogs closed $1.20 higher at $89.
Cash hog closed sharply higher with a big negotiated run. Processors have been aggressive in their procurement efforts and bid up to move their desired numbers. This is a continuation of the recent pattern for cash hog business, a couple of days moving big numbers at sharply higher prices and then backing off their procurement efforts. While demand for US pork has been relatively strong on both the global market and domestically there is concern a slowing of the global economy could result in less demand and weakening prices. Hog weights have dropped significantly from the previous year with the average for the Iowa/Southern Minnesota at 828.8 pounds, down 4.3 on the year. Barrows and gilts at the National Daily Direct closed $3.67 higher with a base range of $83 to $104 with a weighted average of $97.52; the Iowa/Minnesota closed $3.37 higher with a weighted average of $99.94; the Western Corn Belt closed $3.40 higher with a weighted average of $99.97. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady in Dorchester, Wisconsin at $60 and higher in Red Oak, Iowa at $66. At Illinois, slaughter sow prices were steady with heavy demand for moderate offerings at $59 to $71. Barrows and gilts were steady with moderate demand for moderate offerings at $58 to $68. Boars ranged from $30 to $35 and $9 to $19.
Pork values closed $1.37 lower at $101.30. Bellies are sharply lower. Butts, ribs, and picnics closed lower. Loins and hams were higher. Estimated hog slaughter was 491,000 head – even on the week and up 12,000 on the year. Tuesday’s hog slaughter has been revised to 475,000 head.