Market News

Cash hogs sharply higher amid strong global demand for U.S. pork

Chicago Mercantile Exchange live and feeder cattle futures were mixed, mostly higher, with boxed beef up at midday, preparing for widespread direct business and Friday’s USDA Cattle on Feed report. August live was up $1.02 at $211.67 and October was $.67 higher at $209.22. August live cattle was $.82 higher at $304.17 and September was up $.90 at $303.80.

Direct cash cattle trade activity had some light business Wednesday. A light dressed trade was reported in parts of Nebraska at $376 on a dressed basis, $4 lower than the previous week’s weighted averages. Elsewhere in cattle country, a few bids have been restated at $235 live. Asking prices are around $235-plus live in the South, but still haven’t been established in the North. Look for more business to develop over the balance of the week.

At the Interstate Regional Stockyards in Missouri on Tuesday, feeder steers over 600 pounds were steady to $10 lower compared to the most recent sale. Heavier weights were steady to $4 higher. Feeder heifers over 450 pounds sold $2 to $5 higher. USDA says demand was good for a moderate supply. Feeder supply included 45% steers and 50% of the offering was over 600 pounds. Medium and Large 1 feeder steers 714 to 737 pounds brought $325 to $339.50. Medium and Large 1 feeder heifers 552 to 586 pounds sold for $348 to $356.

Boxed beef closed higher with Choice up $2.36 at $388.87 and Select up $.20 at $372.74. The Choice/Select spread was $16.13.

Estimated cattle slaughter was 113,000 head – up 3,000 on the week and down more than 7,000 on the year.

Lean hog futures were mixed on spread trade, the higher cash during the session, and the lower midday move in pork. The trade also wants to see if China bought any U.S. pork last week, with the USDA’s export sales report delayed until Friday. July lean hogs were up $.52 at $112.17 and August was $.20 higher at $112.00.

Cash hogs closed steady to sharply higher. Global demand for U.S. pork remains strong, despite the uncertainty around China’s purchasing habits. Domestic demand has found some strength recently and that’s also helping support the market. The industry continues to monitor the availability of market-ready hogs and hog weights. Those declined again this week to 286.5 pounds, that’s down 0.7 pounds on the week and down 0.9 pounds on the year.

Barrows and gilts at the National Daily Direct closed sharply higher – up $4.83 with a base range of $102 to $115, and a weighted average price of $114.07. The Iowa/Minnesota was up $4.36 with a weighted average price of $114.19. The Western Corn Belt was $4.34 higher with a weighted average price of $114.26. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are $2 higher at $76. At Illinois, slaughter sow prices were $1 higher with moderate demand for light offerings at $54 to $66. Barrows and gilts were steady with moderate demand for light offerings at $63 to $73. Boars ranged from $25 to $35 and $18 to $25.

Pork values closed lower – down $1.61 at $118.28. Bellies and picnics were higher. Hams, ribs, butts, and loins were lower.

Estimated hog slaughter was 481,000 head – up a thousand on the week and up more than 2,200 on the year.