Market News

Cash hogs steady to firm Thursday

Chicago Mercantile Exchange live and feeder cattle futures were down sharply on fund and technical liquidation, despite another round of steady to higher direct business. The USDA says beef export sales of 9,700 tons were up on the week, with Japan and China leading the way. February live was $1.92 lower at $196.60 and April was down $1.65 at $197.67. March feeders were $2.07 lower at $267.72 and April was down $1.92 at $268.20.

Cash cattle country had a light trade in all three major feeding areas Thursday. Northern dressed business in Nebraska is reported at $322, $2 higher than last week. A very light Southern trade has been noted at fully steady with Wednesday’s deals at mostly $201. Asking prices remain around $202-plus in the South and $323-plus in the North.

At the Bassett Livestock Auction in Nebraska, feeder steers and heifers traded unevenly steady compared to the most recent sale. USDA says total receipts were up on the week and sharply higher year-over-year. Demand was good with several buyers and active internet bidding. Feeder supply included 79% steers and 73% of the offering was over 600 pounds. Medium and Large 1 feeder steers 700 to 741 pounds brought $299 to $321. Medium and Large 1 feeder heifers 604 to 648 pounds sold for $295.50 to $319.

Boxed beef was mixed at the close with Choice down $.73 at $333.41 and Select up $1.34 at $319.38. The Choice/Select spread was $14.03.

Estimated cattle slaughter was 122,000 head – up 5,000 on the week and up nearly 1,500 on the year.

Lean hog futures were mostly lower on spread trade and the drop in cattle, largely ignoring the cash and wholesale trade during the session. The USDA says pork export sales of 30,300 tons were slightly lower than the previous week with Mexico, South Korea, and Japan topping the list. February was down $.82 at $82.30 and April was $.47 lower at $90.55.

Cash hogs were steady to firm with light closing negotiated numbers at the major direct markets. Most buyers at those major direct markets should now have their near-term needs pretty much covered for the rest of the week, especially after the strong business Wednesday. The cutout value closed modestly lower, falling below the five-day average and adding to the ongoing questions about sustained domestic pork demand in the new year.

Barrows and gilts at the National Daily Direct were up $.03 with a base range of $71 to $81. The Iowa/Minnesota was up $.13 for a weighted average of $80.57. The Western Corn Belt was $.17 higher for a weighted average of $80.57. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs were steady at the Midwest cash markets on Thursday. Barrows and gilts were priced at $58; slaughter sows ranged from $45 to $51; boars were marked at $18.

At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $37 to $49; barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56; boars were priced at $15 to $30.

Pork values closed lower – down $.44 at $90.39. Loins and butts were higher. Picnics, ribs, hams, and bellies were all lower.

Estimated hog slaughter was 488,000 head – up 5,000 on both the week and year.