Market News

Hog futures mostly lower ahead of Quarterly Report

At the Chicago Mercantile Exchange, live and feeder cattle were up ahead of direct business.  Feeders had additional support from the lower move in corn. October live cattle closed $2.15 higher at $220.92 and December live cattle closed $2.90 higher at $222.35.  October feeder cattle closed $5.30 higher at $333.32 and November feeder cattle closed $6.30 higher at $329.50. 

Direct cash cattle trade activity was quiet again Wednesday.  Bids did surface in Nebraska at $223 live and $350 dressed, but those have been passed.  Asking prices still haven’t surfaced.  Significant trade volume looks like it’s going to hold out until the end of the week.

At the Ozarks Regional Stockyards in Missouri, feeder steers and heifers were steady to weak. Steer and heifer calves, weighing 500 to 699 pounds were steady to $10 lower.  Calves, weighing less than 500 pounds were sharply higher.  The USDA says demand was good, but did soften throughout the day.  Supply was moderate, with the largest offering since mid-May.  The quality was mixed, with several groups of high-quality, preconditioned calves.  Receipts were up on the week and the year.  Feeder supply included 58 percent steers with 49 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 602 to 635 pounds brought $367.50 to $389 and feeder steers 1008 pounds brought $296.50.  Medium and Large 1 feeder heifers 652 to 694 pounds brought $327.50 to $347.50 and feeder heifers 711 to 719 pounds brought $320 to $325. 

Boxed beef was lower and sharply lower with light demand for moderate offerings.  Choice was $1.58 lower at $377.31 and Select was $5.51 lower at $352.34.  The Choice/Select spread is $24.97. Estimated cattle slaughter was 94,000 head, down 8,000 on the week and down about 28,000 on the year. 

Lean hog futures closed mostly lower on spread trade and profit-taking, ahead of the USDA’s quarterly numbers. October lean hogs closed $.60 higher at $79.87 and December lean hogs closed $.67 lower at $70.32. 

Cash hogs closed lower with a moderate negotiated run. Processors have moved decent numbers this week, but have been able to do so at lower prices.  The trade is looking to the USDA’s Quarterly inventory report.  Demand remains crucial to price support, and while there have been some bright spots in both global and domestic markets, there are lingering concerns about long-term strength.  Hog weights were up a pound this week to 286.9, but is nearly steady with year-ago levels.  Barrows and gilts at the National Daily Direct closed $.25 lower with a base range of $72 to $85.50 and a weighted average of $79.65; the Iowa/Minnesota closed $.90 lower with a weighted average $78.88; the Western Corn Belt closed $.83 lower with a weighted average of $78.95; no comparison at the Eastern Corn Belt but a weighted average of $80.95. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $55 to $65.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed lower, down $1.17 at $86.82.  All of the primals finished the day lower.  Estimated hog slaughter was 486,000 head, down 2,000 on the week and about even on the year.