Market News

Hog futures start the week higher

At the Chicago Mercantile Exchange, live cattle closed higher, and feeders were mostly higher ahead of the week’s direct cash business. August live cattle closed $.70 higher at $135.62 and October live cattle closed $1.05 higher at $140.60.  August feeders were $.32 higher at $176.67 and September feeders were $.25 lower at $179.42.

Direct cash cattle business started the week quietly.  Bids and asking prices are slow to surface.  Showlists this week are mixed – higher in Texas, and Nebraska/Colorado, but lower in Kansas.  Significant trade volume will likely be delayed until midweek or later.

At mid-session, at the Oklahoma National Stockyards, compared to the previous week feeder steers $4 to $7 lower.  Feeder heifers were unevenly steady with a light test in most classes. Steer and heifer calves were $3 to $5 lower.  The USDA says demand was moderate to good and quality was mostly average.  Receipts were up on the week and the year.  Feeder supply is 56% steers and 58% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 693 pounds brought $167 to $175.50 and feeder steers 755 to 796 pounds brought $162 to $172.50.  Medium and Large 1 feeder heifers 555 to 597 pounds brought $165 to $174.75 and feeder heifers 651 to 684 pounds brought $154 to $167.50. 

Boxed beef closed higher on solid demand for light offerings.  Choice closed $1.64 higher at $270.55 and Select closed $.87 higher at $242.10.  The Choice/Select spread is $27.89. Estimated cattle slaughter is 125,000 head – even on the week and up 9,000 on the year.  Friday’s cattle slaughter has been revised to 120,000 head. 

Lean hog futures ended the day higher, supported by the higher pork values during the session.  August lean hogs closed $2.30 higher at $112.12 and October lean hogs closed $1.77 at $94.37. 

Cash hogs ended the day sharply lower with a light negotiated run. Processors started the week slowly and are moving their desired numbers without having to bid up.  While demand for US pork on the global market and domestically has been strong, there are long-term concerns which have been adding pressure to prices.  The industry continues to monitor the availability of market-ready hogs.  Barrows and gilts at the National Daily Direct closed $5.52 lower with a base range of $108 to $122.50 and a weighted average of $112.47.  Prices at the regional direct markets were not reported due to confidentiality.  The 5-day rolling average at the Iowa/Minnesota was $124.41; the average for the Western Corn Belt was $124.25; the average for the Eastern Corn Belt was $119.80.

Butcher hog prices at the Midwest cash markets are steady at $80. At Illinois, slaughter sow prices were $3 higher with moderate demand for moderate offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $74 to $83.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values ended the day weak – down $.22 at $121.96.  Butts, hams, and loins were lower to sharply lower.  Picnics were firm. Ribs and bellies were higher to sharply higher. Estimated hog slaughter 449,000 head – up 10,000 on the week and down 9,000 on the year.