Market News

Hog futures higher on oversold signals

At the Chicago Mercantile Exchange, live cattle futures were mostly higher on spread adjustments and oversold signals.  Feeder cattle closed sharply higher on an oversold bounce, the day’s lower move in corn, and broader market support.  April live cattle closed $4.50 lower at $83.82 and June live cattle closed $.55 lower at $80.30.  April feeder cattle closed $2.17 higher at $110.42 and May feeder cattle closed $1.20 higher at $109.30. 

Direct cash cattle trade activity is off to a quiet start.  Bids and asking prices have yet to be established.  Showlists this week appear to be mixed, higher in Texas, about steady in Nebraska/Colorado, and lower in Kansas.  It’s likely significant trade volume will be delayed until at least midweek or later. 

At midsession at the Oklahoma National Stockyards, compared to last week feeder cattle under 800 pounds are $2 to $6 lower, steers over 800 pounds are $10 to $12 lower.  Steer and heifer calves are too lightly tested so far, but a lower undertone is noted.  The USDA says demand is light to moderate.  Receipts are down on the week and the year.  Feeder supply included 69 percent steers and 82 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 751 to 796 pounds brought $102 to $127.10 and feeder steers 903 to 947 pounds brought $96.50 to $107.  Medium and Large 1 feeder heifers 614 to 646 pounds brought $111.50 to $138 and feeder heifers 787 to 791 pounds brought $89.50 to $95. 

Boxed beef closed weak to lower on light to moderate demand and heavy offerings.  Select and Choice rib cuts are lower, while chuck cuts are higher.  Select and Choice loin cuts are steady.  Choice round cuts are firm while Select is weak.  Choice closed $.39 lower at $230.05 and Select closed $.81 lower at $215.03.  The Choice/Select spread is $15.02. 

Estimated cattle slaughter is 110,000 head – down 7,000 on the week and down 11,000 on the year. 

Lean hog futures ended the day higher with support from stronger wholesale values and broader markets.  Contracts were oversold and due for a bounce.  April lean hogs closed $.90 higher at $41.12 and May lean hogs closed $4.15 higher at $45.37. 

Cash hogs ended the day sharply lower with moderate negotiated numbers.  Supplies are heavy and packer activity has been limited.  That’s been very negative on prices.  There is significant domestic demand concern, as Easter traditionally means consumers purchasing more pork, but with many states pushing for its residents to remain healthy at home, holiday gatherings will be limited.  Social distancing restrictions are likely to remain in place for the next several weeks, and that continues to pressure overall demand.  The industry continues to look for a silver lining, and that’s the global protein picture. With short global protein supplies because of African swine fever, as long as there are no major disruptions to US production, the US pork sector remains well-positioned to meet those needs. Barrows and gilts at the National Daily Direct closed $1.07 lower with a base range of $40 to $43.50 for a weighted average of $41.77; the Iowa/Minnesota closed $3.39 lower for a weighted average of $40.31; the Western Corn Belt closed $3.17 lower for a weighted average of $40.35.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady today at $33.  At Illinois slaughter sow prices were weak, with light demand for heavy offerings at $25 to $40.  Barrow and gilt prices were weak, with light demand for moderate offerings at $20 to $25. 

Pork values ended the day firm – up $.32 at $57.69.  Picnics, hams, and bellies are all sharply higher.  Ribs and butts are sharply lower.  Loins are steady.  Estimated hog slaughter is 477,000, down 14,000 on the week and up 1,000 on the year.