Market News

Hog futures end the week sharply higher

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were lower on position squaring ahead of Friday’s On Feed numbers.  The numbers were close to pre-report expectations and mostly look neutral for prices in the short-term, however, the placements numbers will likely weigh on deferred futures contracts.  April live cattle closed $.80 higher at $140.47.  April feeder cattle closed $1.15 lower at $161.57.

It was a mostly quiet Friday for direct cash cattle trade activity, with just a little scattered business reported.  Southern live deals for the week were at $138, fully steady with the previous week’s weighted averages.  Dressed deals have been at mostly $221, steady/weak with the prior week’s weighted average basis in Nebraska.  Many of those were marked for delayed delivery. 

At the Winter Livestock Auction in Kansas, compared to last week feeder steers 800 to 950 pounds were steady to $2 higher.  Lighter weight steers were steady on limited comparison.  Heifers 400 to 900 pounds were steady to $2 higher.  There were spots of 500-to-600-pound heifers that were $8 to $10 higher.  The USDA says demand was good.  Receipts were down on the week and the year.  Feeder supply included 39% steers and 73% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 816 to 844 pounds brought $148.35 to $151.75 and feeder steers 911 to 919 pounds brought $143 to $148.75.  Medium and Large 1 feeder heifers 515 to 519 pounds brought $176 to $182.50 and feeder heifers 753 to 764 pounds brought $141.10 to $142.75. 

In Missouri this past week, some rain fell helping to alleviate some of the drought areas in the state.  The precipitation was good for pasture and hayfields.  Supplies of hay are moderate and demand is light to moderate with hay prices mostly steady.  Alfalfa, supreme medium squares brought $200 to $250.  Alfalfa, supreme small squares brought $8 to $12 per bale.  Alfalfa, premium, medium squares brought $160 to $200.  Alfalfa, good large rounds brought $120 to $160.  Alfalfa, good small squares brought $5 to $9 per bale.  Alfalfa, large rounds brought $100 to $125.  Alfalfa/grass mix, good/premium small squares brought $6 to $8 per bale.  Mixed grass, good/premium large rounds brought $80 to $140.  Mixed grass, fair/good large rounds brought $60 to $100. 

Boxed beef closed mixed on light demand for light offerings.  Choice closed $.23 higher at $262.64 and Select closed $.45 lower at $252.14.  The Choice/Select spread is $10.50. Estimated cattle slaughter is 114,000 head – up 14,000 on the week and even on the year.  Saturday’s estimated kill is 57,000 head – up 13,000 on the week and down 3,000 on the year. 

Lean hog futures were sharply higher supported by sharply higher cash and wholesale business.  April lean hogs closed $4.70 higher at $107.47. 

Cash hogs closed mixed with a fairly light negotiated run.   Processors have been more aggressive in their procurement efforts for the week and in many cases had to bid up to move their desired numbers.  Demand for US pork on the global market and domestically has been strong which is expected to continue.  However long-term demand concerns are lingering, adding pressure to the market.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $2.27 higher with a base range of $100 to $112 and a weighted average of $108.84; the Iowa/Minnesota closed $.13 lower with a weighted average of $119.59; the Western Corn Belt closed $.15 lower and a weighted average of $109.51.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s National Feeder Pig report, compared to last week, prices on early-weaned pigs were $8 lower, while feeder pigs were $2 higher.  Demand was light to moderate for moderate offerings.  Trade was moderate.  Receipts included 46% formulated prices.  Total Composite cash range for early-weaned pigs was $58 to $90.75 with a weighted average of $71.71.  Total Composite formula rage for early-weaned pigs was $41.76 to $85.78 and a weighted average of $59.61.  The weighted average for all early-weaned pigs was $65.36 and the weighted average for all feeder pigs was $119.89. 

At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $74 to $84.  Barrows and gilts were steady with moderate demand for moderate offerings at $66 to $73.  Boars ranged from $40 to $45 and $20 to $25. 

Pork values closed higher – up $1.89 at $109.90.    Bellies and picnics were sharply higher.  Butts and loins were higher.  Hams and ribs were lower. Estimated hog slaughter is 460,000 head – down 10,000 on the week and down 19,000 on the year.  Saturday’s estimated kill is 57,000 head – down 1,000 on the week and down 82,000 on the year.