Market News

Hog futures higher heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were lower, watching direct business unfold.  October live cattle closed $.72 lower at $177.90 and December live cattle clsoed $1.07 lower at $176.70.  September feeder cattle closed $1.80 lower at $239.50 and October feeder cattle closed $1.90 lower at $236.67. 

A light to moderate direct cash cattle trade took place Thursday.  In Nebraska, live deals were at $184 and dressed business was at $292, about $2 below the previous week’s weighted averages.  Southern live deals were reported at $183, about steady the the prior week’s business.  That likely will be the bulk of this week’s business. 

At the Mobridge Livestock Exchange in South Dakota, there were a few loads and many packages that made up the day’s offering.  Demand was good to very good for loads and moderate to good for packages.  Most of the offering came off grass with flesh mostly light to moderate, with some fill at times.  Quality varied, but was mostly average to attractive.  The market was moderate to active at times.  Receiptsw ere up from the most recent sale and down on the year.  Feeder supply included 47% steers and 100% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 933 to 946 pounds brought $228 to $239.75 and feeder steers 957 to 987 pounds brought $223.50 to $238.  Medium and Large 1 feeder heifers 908 to 921 pounds brought $217 to $225.50 and feeder heifers 923 to 933 pounds brought $228. 

Boxed beef closed mixed with light to moderate demand for heavy offerings.  Choice was $1.37 higher at $308.66 and Select closed $1.44 lower at $296.19.  The Choice/Select spread is $12.47. Estimated cattle slaughter was 123,000 head – down 2,000 on the week and down more than 1,000 on the year. 

Lean hog futures ended the day higher on demand optimism.  October lean hogs closed $.50 higher at $82.17 and December lean hogs closed $.62 higher at $72.55. 

Cash hogs closed lower with a light negotiated run. Buyers likely had needed near-term numbers on hand ahead of the upcoming holiday weekend. Processors just haven’t been as aggressive in their procurement efforts and business has been sluggish, at best.  The heat this week has probably also been a contributing factor.  The USDA says pork export sales of 42,200 tons were up sharply from the previous week’s marketing year low and 59% larger than average. Barrows and gilts at the National Daily Direct were $1.20 lower with a base range of $75 to $78.50 and a weighted average of $76.55 and the Western Corn Belt closed $1.17 lower with a weighted average of $76.58.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality.   

Butcher hogs at the Midwest cash markets are steady at midday. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $53 to $65.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $18 to $28 and $8 to $15 

Pork values closed higher – up $.61 at $95.89.  Bellies, butts, loins, and picnics were all higher.  Hams and ribs were lower. Estimated hog slaughter was 485,000 head – up 3,000 on the week and up about 17,000 on the year.