Market News

Cash hogs close sharply lower Friday

Chicago Mercantile Exchange live cattle futures were up with most contracts at a discount to the week’s direct business, while feeders were supported by cash demand expectations. August live was $.12 higher at $182.37 and October was up $.57 at $184.07. August feeders were up $2.50 at $258.65 and September was $1.75 higher at $258.10.

Cash cattle business was very quiet on Friday as business essentially wrapped up on Thursday. Some light to moderate trade took place mid-week with southern live deals at mostly $188, $2 to $4 lower than the previous week’s weighted averages. Northern dressed trade has been at mostly $312, $2 lower than the week prior. Asking prices for cattle left on showlists were around $190 in the South and $315 in the North.

At the Winter Livestock Auction in Kansas on Wednesday, feeder steers and heifers were not well tested. Slaughter cows sold $2 higher and bulls were $7 lower. USDA says demand was good for a low supply. The feeder supply included 73% steers and 91% of the offering was over 600 pounds. Medium and Large 1 feeder steers 861 pounds brought $242.75. Medium and Large 1 feeder heifers 763 pounds sold for $252.10.

Boxed beef was mixed at the close Friday. Choice was up $.41 at $322.06 and Select was down $1.07 at $302.31. The Choice/Select spread was $19.75.

Estimated cattle slaughter was 118,000 head – up 2,000 on the week and down more than 2,000 on the year.

Lean hog futures were mixed on spread trade, the mostly lower cash during the session, and the higher midday pork. August was up $1.77 at $88.45 and October was $.75 higher at $70.15.

Cash hogs were steady to sharply lower with light closing negotiated numbers for the major direct markets. It looks like most buyers had their near-term supplies taken care of after the aggressive demand earlier in the week, using their leverage when possible, and only adding a couple of hundred head between the open and the close. Wholesale business had a strong back half of the week, even with wide swings in some of the individual primal cuts.

Barrows and gilts at the National Daily Direct were down $3.73 with a base range of $79 to $87 and weighted average price of $83.04. The Western Corn Belt was down $5.33 with a weighted average price of $81.66. The Iowa/Minnesota and Eastern Corn Belt were not reported due to confidentiality.

Butcher hog markets at the Dorchester, Wisconsin and Garnavillo, Iowa markets were closed on Friday. At Illinois, direct sows were $1 lower with a range of $50 to $62; barrows and gilts were steady at $52 to $62; boars were marked at $8 to $28.

Pork values closed higher – up $2.61 at $98.84.

Estimated hog slaughter was 470,000 head – up 25,000 on the week and up more than 13,000 on the year.