Market News

Hog futures lower on wholesale pressure

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were up ahead of the week’s direct business. December live cattle closed $.27 lower with a weighted average of $175.47 and February live cattle closed $.15 lower at $176.65.  January feeder cattle closed $1.35 higher at $229.85 and March feeder cattle closed $1.32 higher at $232.30. 

It was a quiet Monday for direct cash cattle business.  Showlists this week are mixed, higher in the South, but lower in Nebraska/Colardo.  Significant trade volume may occur a little earlier than normal due to the holiday-shortened week. 

At the Oklahoma National Stockyards, feeder steers, and heifers were not well tested.  There were a few early sales, which were nearly steady.  Steer and heifer calves were suitable for wheat pasture conditions, trading $4 to $10 higher.  Demand was good for all classes early on.  Receipts were down significantly on the week and the year.  Feeder supply included 45% steers.  Medium and Large 1 feeder steers 601 to 646 pounds brought $238 to $270 and feeder steers 663 to 668 pounds brought $234 to $247.  Medium and Large 1 feeder heifers 553 to 599 pounds brought $224 to $254 and feeder heifers 601 to 625 pounds brought $224 to $227.

Boxed beef closed higher on solid demand for heavy offerings.  Choice was $1.88 higher at $295.75 and Select closed $.25 higher at $270.95.  The Choice/Select spread was $24.80.  Estimated cattle slaughter was 125,000 head – even on the week and down 5,000 on the year. 

Lean hog futures were lower on cash and wholesale pressure. December lean hogs closed $.62 lower with a weighted average of $70.35 and February lean hogs closed $.40 at $75.05. 

Cash hogs closed mixed with a wide range and a solid negotiated run. The inconsistency in the cash hog market continues.  Business is off to an abnormally aggressive start in this shortened holiday week.  Ample supplies of market-ready hogs give packers the leverage they need to move numbers without getting aggressive in their procurement efforts.  Demand, overall, for US pork on the global market has been strong, but fell back in last week’s Export Sales report. Barrows and gilts at the National Daily Direct closed $5.42 higher with a base range of $58 to $70 and a weighted average of $67.22; the Iowa/Minnesota closed $.19 lower with a weighted average of $61.41; the Western Corn Belt closed $.04 higher with a weighted average of $61.24; the Eastern Corn Belt had no comparison but a weighted average of $69.68.

Butcher hog prices at the Midwest cash markets are $5 lower than last week’s test at $55. At Illinois, slaughter sow prices were $2 higher with moderate demand for moderate to heavy offerings at $45 to 58.  Barrows and gilts were $2 lower with moderate demand for moderate offerings at $38 to $48.  Boars ranged from $18 to $21 and $5 to $10.

Pork values closed lower – down $2.07 at $86.09.  Bellies and picnics were sharply lower.  Butts were also lower.  Hams, ribs, and loins were higher. Estimated hog slaughter was 486,000 head – up 16,000 on the week and down 2,000 on the year.  Friday’s hog slaughter has been revised to 480,000 head.