Cattle Futures Rise Sharply as Lean Hogs Remain Mixed

Cattle futures have seen significant gains at the Chicago Mercantile Exchange, driven by technical buying and support from declining corn prices. Live and feeder cattle futures rose sharply, with October live cattle increasing $2.15 to $212.92 and December up $2.22 to $214.80. September feeder cattle jumped $3.45 to $322.45, while October feeders rose $3.82 to $318.07.

Direct cash cattle trade was quiet, with limited activity due to losses in recent weeks. A few bids were placed at $220 live in Nebraska, but major feeding areas have been stagnant this week. Buyers are seeking to improve their margins, while sellers remain hesitant.

The Hub City Livestock Auction in Aberdeen, South Dakota saw moderate to active market conditions, with receipts increasing on the week and year. Feeder supply consisted of 54% steers, all above 600 pounds. Medium and large 1 feeder steers brought $301.75 to $320.75, averaging $308.54.

Lean hog futures were mixed, with October down $0.27 at $80.62 and December up $0.22 at $71.20. Cash hogs were steady to lower, with moderate closing negotiated movement at major direct markets. Processors have likely met their procurement efforts earlier in the week.

Boxed beef saw significant declines, with Choice falling $3.77 to $381.36 and Select down $3.49 to $359.19. Estimated cattle slaughter is 105,000 head, up 5,000 on the week but down 14,000 from last year. Hog slaughter estimates stand at 486,000, a 44,000 increase from the previous week but a 1,000 decrease from last year.