Cattle and Hog Futures Fluctuate as Market Dynamics Shift

The livestock futures markets experienced mixed results to start the week, with live cattle futures rising while feeder cattle futures declined, largely due to the impact of higher corn prices. Meanwhile, the pork market saw lean hog futures end the day in a mixed state, reflecting steady to weak cash business and ongoing global demand concerns. The article delves into the nuances of these market movements and the factors driving them.

Navigating the Ebb and Flow of the Livestock Futures Landscape

Live Cattle Futures Climb, Feeder Cattle Succumb to Corn Pressure

At the Chicago Mercantile Exchange, live cattle futures saw an uptick, with boxed beef prices also higher at midday. However, feeder cattle futures faced downward pressure, weighed down by the higher corn prices. The October live cattle contract closed $0.02 higher at $183.77, while the December live cattle contract closed $0.32 higher at $184.80. In contrast, the October feeder cattle contract closed $0.87 lower at $246.20, and the November feeder cattle contract closed $0.80 lower at $244.90.The direct cash cattle trade activity had a typically quiet start to the week, with bids and asking prices not yet surfacing. Showlists this week are mixed, with some regions seeing higher numbers, while others experienced lower numbers. It is anticipated that significant trade volume will likely be delayed until midweek or later.

Oklahoma Stockyards See Improved Feeder Cattle Demand and Quality

At the Oklahoma National Stockyards, feeder steers and steer calves were $3 to $8 higher, while feeder heifers and heifer calves were steady to $4 higher. The USDA noted that demand was good, and the quality of the offerings had improved significantly from the previous week, which helped support the higher market. Receipts were down on the week but up on the year. The feeder supply included 60% steers, and 63% of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 702 to 745 pounds brought $248 to $261, and those weighing 751 to 790 pounds brought $240 to $258. Medium and Large 1 feeder heifers weighing 600 to 641 pounds brought $237.50 to $251, and those weighing 702 to 736 pounds brought $228 to $238.

Boxed Beef Prices Mixed, Cattle Slaughter Estimates Increase

Boxed beef prices closed in a mixed state, with light to moderate demand for the limited offerings. Choice boxed beef was $0.32 higher at $296.69, while Select boxed beef closed $0.29 lower at $282.08, resulting in a Choice-Select spread of $14.61. Estimated cattle slaughter for the day was 119,000 head, up 1,000 on the week but down about 4,000 on the year.

Lean Hog Futures Fluctuate, Cash Hog Prices Climb

Lean hog futures ended the day in a mixed state, with spread trading activity. Pork values were higher at midday, but cash business was steady to weak. The October lean hog contract closed $0.20 higher at $82.25, while the December lean hog contract closed $0.10 lower at $73.27.Cash hog prices closed higher, with a fairly light negotiated run. Processors were more aggressive in their procurement efforts on Monday afternoon, bidding up to secure the necessary numbers. This could set the stage for the next couple of days of business. Demand for U.S. pork on the global market remains strong, but there are long-term concerns about domestic demand. Supplies of market-ready hogs are ample, and hog weights are still running well above year-ago levels, ensuring a plentiful supply of pork. Barrows and gilts at the National Daily Direct closed $1.57 higher, with a base range of $73 to $77.75 and a weighted average of $76.68. In the Western Corn Belt, prices closed $1.73 higher, with a weighted average of $77.15.

Pork Values Firm, Hog Slaughter Estimates Increase

Butcher hog prices at the Midwest cash markets remained steady at $55. Pork values closed firm, up $0.09 at $95.86, with bellies, ribs, and loins all higher, while hams, picnics, and butts were lower. Estimated hog slaughter for the day was 485,000 head, up 6,000 on the week but down more than 2,000 on the year.