Cattle futures supported by stronger cash trade
At the Chicago Mercantile Exchange, live and feeder cattle closed higher, supported by this week’s stronger cash trade and recent push higher in wholesale values. August live cattle closed $1.70 higher at $106.35 and October live cattle closed $1.27 higher at $109.57. August feeder cattle closed $.75 higher at $145.25 and September feeder cattle closed $1.32 higher at $147.95.
A moderate trade took place in the South on Wednesday. Live deals in Kansas were at mostly $104 with a few at $105 and deals in Texas were at $104, mostly $4 higher than last week’s weighted averages. Still no significant business in the North. Look for asking prices to be restated at $106 plus, live in the South and $168 to $170 plus dressed in the North.
At the Ozarks Regional Stockyards in Missouri, compared to last week steer and heifer calves were steady to $2 higher. Yearlings were not well tested, but undertones were steady. The USDA says demand was good on a moderate supply. Receipts were down on the week but up on the year, and triple-digit temperatures at the start of the week likely played a factor. Feeder supply included 46 percent steers and 45 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 649 pounds brought $146 to $159 and feeder steers 657 to 698 pounds brought $143 to $160. Medium and Large 1 feeder heifers 500 to 547 pounds brought $136 to $145 and feeder heifers 654 to 697 pounds brought $130 to $138.
Boxed beef closed higher with good demand for moderate offerings. Choice closed $1.01 higher at $209.09 and Select closed $.97 higher at $195.99. Estimated cattle slaughter is 117,000 head – even on the week and up 2,000 on the year.
Lean hog futures closed mostly lower on spread trade and long-term supply and demand concerns. August lean hogs closed $.17 lower at $52.90 and October lean hogs closed $.22 lower at $51.60.
Cash hogs closed firm with light negotiated purchases. Ongoing demand uncertainties combined with heavy supplies of market-ready barrows and gilts is making it very difficult for prices to break out their current pattern. Daily slaughter totals continue to push higher. While that is adding more pork to the market, it is also allowing processors to start to relieve some pressure in the production supply chain and start to work through the backlog of hogs. Hog weights increased this week by seven-tenths of a pound to 280.4 pounds. That’s also 3.6 pounds above year-ago levels. Barrows and gilts at the National Daily Direct closed $.26 higher with a base range of $34.50 to $40 for a weighted average of $37.69. Prices at the regional direct markets were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $24. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $11 to $23. Barrow and gilt prices were steady with moderate demand for moderate to heavy offerings at $19 to $24. Boars ranged from $1 to $3.
Pork values closed higher – up $2.05 at $72.44. Hams closed nearly $17 higher. Ribs were also higher. Bellies, Picnics, butts, and loins were all sharply lower. Estimated hog slaughter is 481,000 head – up 6,000 on the week and down 3,000 on the year.