Market News

Hog futures drop on trade uncertainties

At the Chicago Mercantile Exchange, live cattle futures closed lower on profit taking and were also pressured by long-term demand concerns.  Feeder cattle futures closed sharply lower on follow through selling.  August live cattle closed $1.50 lower at $103.30 and October live cattle closed $1.25 lower at $104.50.  August feeder cattle closed $2.02 lower at $137.25 and September feeder cattle closed $2.25 lower at $137.35. 

The week finished with another round of light direct cash cattle trade.  Live deals in the north were at $115, $1 higher than business earlier that week.  There were a few deals for delayed delivery reported at $184 dressed in Nebraska.  The rest of cattle country was quiet on Friday. 

For the week, in Missouri, receipts were up.  Compared to the most recent report, feeders were mostly $2 to $6 lower, with spots of $10 lower.  The supply of feeders was moderate and pretty well balanced from light weight calves up to heavy yearlings.  Demand was moderate to good.  Feeder supply included 52 percent steers and 43 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 597 pounds brought $135 to $180 and feeder steers 600 to 648 pounds brought $125 to $170.75.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $121 to $152 and feeder heifers 600 to 645 pounds brought $122 to $146.50. 

Iowa hay was cut for the first time at the beginning of the week across the state.  USDA reports it was a typical first cutting and the quality was lacking.  There is very little of the 2018 hay crop that remains, and livestock producers are desperately in need.  Alfalfa supreme large squares brought $320.  Alfalfa/grass new crop Premium large squares brought $267.  Fair small squares brought $170 to $200.  New crop Grass hay, Premium small squares brought $200 to $240.  New crop Good Large squares brought $125 to $166 and good large rounds brought $160 to $180.  New crop Fair large rounds brought $100 to $120.  Small square oat straw brought $235. 

Boxed beef closed steady on moderate demand and light offerings.  Choice closed $.06 higher at $222.31 and Select closed $.24 lower at $206.92.  The Choice/Select spread closed at $15.39. Estimated cattle slaughter is 119,00 head – down 2,000 on the week and even on the year.  Saturday’s estimated kill is 62,000 head – down 31,000 on the week and even on the year. 

Lean hog futures closed sharply lower as demand concerns continue to plague the market.  The ongoing trade issues with both Mexico and China have the market in a volatile position.  Contracts will trade with expanded limits on Monday.  July lean hogs closed $3.00 lower at $83.35 and August lean hogs closed $3.00 lower at $82.62. 

Cash hogs closed steady to weak with moderate negotiated purchase totals.  Supply and demand remain the biggest story of the cash hog market right now.  Slaughter runs continue to run above year-ago levels and more pork is entering the market.  Trade issues are lingering.  There’s been a lot of speculation about what could happen with Mexico as the President has threatened to implement tariffs on goods imported from Mexico.  Trade talks with China have been stagnant.  But, the market is still hopeful global demand for pork will increase as African Swine Fever continues to spread.  Barrows and gilts at the Iowa/Southern Minnesota closed $.63 lower with a range of $67 to $77 for a weighted average of $76.03; the Western Corn Belt closed $.51 lower with a range of $67 to $77 for a weighted average of $75.55; the Eastern Corn Belt had no comparison but had a base range of $74 to $76.50 for a weighted average price of $75.73; and the National Daily Direct closed $.05 higher with a range of $67 to $77 for a weighted average of $75.63. 

The USDA says early weaned pigs and all feeder pigs were $5 per head lower.  Demand was light to moderate for moderate offerings and receipts included 54 percent formulated price.  Total composite formula range was $37 to $60 for a weighted average of $46.24.  Total composite cash range was $30 to $53 for a weighted average of $38.19.  All early weaned pigs average $42.91 and the average for all feeder pigs was $63.36. 

At Illinois, slaughter sow prices were steady at $27 to $44 with light demand for moderate offerings.  Barrow and gilt prices were steady at $48 to $54 with moderate demand for moderate offerings.  Barrow and gilt prices were steady at $48 to $54 with moderate demand for moderate offerings. 

Pork values closed steady – down $.17 at $83.08.  Ribs and loins were lower.  Picnics and butts were weak.  Hams were steady.  Bellies closed higher.  Estimated hog slaughter is 473,000 head – up 2,000 on the week and 55,000 on the year.  Saturday’s estimated kill is 51,000 head – down 198,000 on the week and down 11,000 on the year.