Market News

Hog, cattle futures lower on profit-taking

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower ahead of Friday’s On Feed numbers.  Feeders had additional pressure from the day’s higher move in corn.  April live cattle closed $.80 lower at $119.75 and June live cattle closed $1.95 lower at $117.25.  April feeder cattle closed $2.47 lower at $135.10 and May feeder cattle closed $3.17 lower at $139.60. 

A light direct cash cattle trade developed on Wednesday.  Deals in the South were at $120 live, steady to $1 lower than last week’s weighted averages.  Live deals in Eastern Nebraska were at $122 to $123, $1 to $2 lower than last week’s weighted average basis in Nebraska.  There were also a few dressed deals reported in Iowa at $192, $3 lower than last week’s business. Bids Wednesday were at $192 dressed in the North.  Asking prices for cattle are at $122 to $125 live in the South and $205 plus dressed in the North. 

At the Ozarks Regional Stockyards in Missouri, compared to last week steer calves were $3 to $6 lower, while heifer calves were $4 to $8 lower. Yearlings were not well tested.  The USDA says demand was moderate and improved throughout the day and supply was moderate.  There were mostly new-crop calves in the offering, and they were presented in smaller packages.  Receipts were down on the week and up slightly on the year.  Feeder supply included 52 percent steers and 40 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 508 to 548 pounds brought $161 to $172 and feeder steers 561 to 598 pounds brought $160 to $170.  Medium and Large 1 feeder heifers 409 to 448 pounds brought $147 to $152 and Medium and Large 1-2 feeder heifers 510 to 547 pounds brought $128 to $138. 

Boxed beef closed higher on good demand for moderate offerings.  Choice closed $2.20 higher at $280.46 and Select closed $1.41 higher at $271.88.  The Choice/Select spread is $8.58.  Estimated cattle slaughter is 120,000 head – up 5,000 on the week and up 34,000 on the year. 

Lean hog futures ended the day lower on profit-taking and overbought signals, ignoring cash and wholesale business.  May lean hogs closed $.47 lower at $107.60 and June lean hogs closed $1.82 lower at $104.52. 

Cash hogs closed higher with a big, negotiated run.  Packers remain aggressive in their procurement efforts and have been bidding up to move larger numbers.  They’re also keeping an eye on the availability of market-ready hogs.  Demand for US pork on the global market and domestically has been very strong and that’s been supportive to prices.  The industry expects that to continue.  Hog weights dropped to 287 pounds, that’s down 0.4 pounds on the week and up 1.2 pounds on the year. Barrows and gilts at the National Daily Direct closed $.80 higher with a base range of $102 to $112 and a weighted average of $106.88; the Iowa/Minnesota closed $1.31 higher with a weighted average of $109.40; the Western Corn Belt closed $1.27 higher with a weighted average of $109.42; the Eastern Corn Belt had no comparison but a weighted average of $105.98.   

Butcher hog prices at the Midwest cash markets are steady at $66.  At Illinois, slaughter sow prices were $2 to $3 lower with moderate demand for moderate offerings at $55 to $66.  Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $67 to $75.  Boars ranged from $40 to $45 and $15 to $18. 

Pork values closed lower – down $1.39 at $113.64.  Bellies, loins, butts, and picnics are all lower.  Hams and ribs closed higher.   Estimated hog slaughter is 485,000 head – up 5,000 on the week and up 126,000 on the year.