Hog futures mixed ahead of quarterly report from the USDA

At the Chicago Mercantile Exchange, live and feeder cattle were up with higher boxed beef during the session, waiting on the week’s direct business to develop. April live closed $.70 higher at $207.07 and June lives closed $.70 higher at $203.02. April feeder cattle closed $1.02 higher at $285.87 and May feeders closed $1.05 higher at $285.17.

Direct cash cattle trade activity has remained quiet. Bids have been elusive. Asking prices were around $212-plus in the South, but hadn’t been established in the North. Significant trade volume will likely be delayed until sometime on Friday.

At the Kingsville Livestock Market, steers and heifers were steady to $8 higher, similar to the previous week. The USDA says demand was good for a moderate supply that featured several loads of yearling heifers. Receipts were down on the week and the year. Feeder supply included 32 percent steers and 53 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 558 to 573 pounds brought $359 to $390 and feeder steers 658 to 699 pounds brought $319 to $338. Medium and Large 1 feeder heifers 558 to 599 pounds brought $303 to $340 and feeder heifers 701 to 722 pounds brought $281.50 to $295.

Boxed beef closed sharply higher with very good demand for solid offerings. Choice was $3.11 higher at $338.30 and Select closed $2.48 higher at $316.53. The Choice/Select spread is $21.77. Estimated cattle slaughter was 123,000 head – up 34,000 on the week and about even on the year.

Lean hog futures closed mixed on spread trade and position squaring ahead of Thursday’s Quarterly Hogs and Pigs report from the USDA. April lean hogs closed $.90 higher at $87.55 and May lean hogs closed $.47 higher at $89.52.