Cattle, hog futures higher to start the week
At the Chicago Mercantile Exchange, both live and feeder cattle ended the day higher supported by the higher wholesale values during the session and broader market support. August live cattle closed $.45 higher at $96.47 and October live cattle closed $.57 higher at $100.05. August feeder cattle closed $.90 higher at $133.50 and September feeder cattle closed $.50 higher at $134.27.
Direct cash cattle trade activity started off slowly for this holiday-shortened week. There were a handful of deals reported today, but not near enough to establish a trend for the week. Deals in Nebraska were at $152 to $153 dressed and in Iowa at $153 dressed. A little activity in Texas was reported at $91 to $92 live. Showlists appear to be higher in Kansas, somewhat lower in Nebraska/Colorado, and smaller in Texas.
At midsession at the Oklahoma National Stockyards, compared to last week feeder steers were steady to $3 higher. Feeder heifers $1 to $4 higher. The USDA says demand was good for feeder cattle and steer and heifer calves were not well tested. Quality was mostly average. Receipts were up on the week and the year. Feeder supply include 67 percent steers and 82 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 702 to 745 pounds brought $130 to $143.50 and feeder steers 866 to 888 pounds brought $118.50 to $124. Medium and Large 1 feeder heifers 604 to 648 pounds brought $124 to $132 and feeder heifers 769 to 787 pounds brought $119.50 to $123.50.
Boxed beef closed higher on good demand for light to moderate offerings. Choice closed $1.19 higher at $208.36 and Select closed $1.86 higher at $200.71. The Choice/Select spread closed $7.65. Estimated cattle slaughter is 121,000 head – up 2,000 on the week and the year.
Lean hog futures ended the day firm on an oversold bounce and the higher cash and wholesale values during the session. July lean hogs up $.10 at $45.27 and August lean hogs up $.32 at $48.45.
Cash hogs closed steady to weak with big negotiated purchases. Packers will likely be aggressive in their procurement efforts ahead of the 4th of July holiday. Supplies of market-ready hogs are more than ample and processors have worked to increase their daily slaughter capacity following the shutdowns and slowdowns because of COVID-19. The supply chains remain fully functional and that’s helping to bring more pork online. But demand concerns continue and that could create more challenges for prices moving forward. Barrows and gilts at the National Daily Direct closed $.20 lower with a base range of $24 to $30.13 for a weighted average of $28.33; the Iowa/Minnesota closed $.72 lower for a weighted average of $28.65; the Western Corn Belt closed $.72 lower for a weighted average of $28.65; the Eastern Corn Belt had no comparison but a weighted average of $28.80.
Butcher hog prices at the Midwest cash markets are steady at $20. At Illinois, slaughter sow prices were weak with moderate to good demand for moderate offerings at $9 to $20. Barrow and gilt prices were steady with moderate to good demand for moderate to heavy offerings at $12 to $20. Boars ranged from $2 to $5.
Pork values closed weak – down $.74 at $65.21. Picnics and hams were sharply lower. Loins, butts, and ribs were firm to higher. Bellies closed sharply higher. Estimated hog slaughter is 468,000 head, up 19,000 on the week and up 12,000 on the year. Saturday’s hog slaughter has been revised to 307,000 head.