Market News

Cash hogs lower as buyers step back late in the week

Chicago Mercantile Exchange live and feeder cattle futures were sharply lower on profit taking, watching direct cash cattle trade start to develop. April live was down $3.37 at $236.90 and June was $3.30 lower at $233.40. March feeders were $4.65 lower at $361.65 and April was down $5.27 at $358.75.

Cash cattle country has a light live trade reported in parts of Nebraska with dressed deals marked at $383, $5 lower than last week’s weighted averages. Some live bids are on the table in parts of Texas at $245. Asking prices remain around $388 to $390 in the North and $250-plus in the South. More trade is expected to take place on Friday.

At the Huss Livestock Market in Nebraska, feeder steers over 600 pounds sold steady to $5 higher and heifers over 500 pounds sold steady to $10 higher. USDA says demand was good from the buyers in the crowd with active internet bidding. Feeder supply included 69% steers and 90% of the offering was over 600 pounds. Medium and Large 1 feeder steers 800 to 839 pounds brought $373 to $385.50. Medium and Large 1 feeder heifers 700 to 734 pounds sold for $369 to $390.

Boxed beef was mixed at the close. Choice was down $1.34 at $377.89 and Select was $3.72 higher at $370.79. The Choice/Select spread was $7.10.

Estimated cattle slaughter was 103,000 head – down 9,000 on the week and down 16,500 on the year.

Lean hog futures were mixed, adjusting spreads, with nearby contracts down and deferred months up. April was $.47 lower at $95.72 and June was down $.25 at $109.92.

Cash hogs were lower with light closing negotiated numbers at the major direct markets. It looks like many buyers have the needed near-term numbers after the mostly higher prices and strong negotiated movement earlier in the week, accounting for the end of the week slowdown. The wholesale market has softened a little, but is holding above the five-day average, and the USDA says pork export sales were up sharply on the week and larger than the four-week average, with about 60% of the weekly total purchased by Mexico. There were no new reported U.S. pork sales to China.

Barrows and gilts at the National Daily Direct closed $.21 lower with a base range of $88 to $93 and weighted average of $91. The Iowa/Minnesota was down $.43 and the Western Corn Belt was $.35 lower. Both markets had a weighted average of $91.07. The Eastern Corn Belt wasn’t reported.

Barrows and gilts in Dorchester, Wisconsin were $1 lower at $68; sows were also trending a dollar lower at $62 to $68; boars were marked at $22.

Pork values closed lower – down $.24 at $97.38. Butts and bellies were higher. Loins, picnics, ribs and hams were lower.

Estimated hog slaughter was 493,000 head – up 8,000 on the week and up more than 5,000 on the year.