Market News

Hog futures pressured as demand concerns continue

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the bulk of the week’s cash business.  October live cattle closed $.77 higher at $180.82 and December lives closed $.52 higher at $184.80.  September feeders closed $.65 higher at $253.27 and October feeders closed $.80 higher at $256.02. 

There was a light direct cash cattle business that took place on Thursday.  Live deals in the South were at $179, mostly steady with the previous week’s business.  However, dressed deals in the North were about $3 below the prior week’s weighted average basis in Nebraska at mostly $290, with a few marked at $293.  Look for more business to develop before the end of the day Friday. 

At the Farmington Regional Stockyards in Missouri, steers and heifers were anywhere from $4 to $10 higher.  The USDA says demand was good and supply was moderate.  Receipts were up from the previous week and down on the year.  Feeder supply included 46% steers and 28% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 455 to 497 pounds brought $280 to $300 and feeder steers 622 to 631 pounds brought $285 to $289.  Medium and Large 1 feeder heifers 561 to 596 pounds brought $269 to $271 and feeder heifers 750 to 782 pounds brought $217 to $233. 

Boxed beef closed lower on light demand for moderate offerings.  Choice was $1.32 lower at $313.79 and Select was $.28 lower at $289.25.  The Choice/Select spread is $24.54. Estimated cattle slaughter was 124,000 head – even on the week and down 1,000 on the year. 

Lean hog futures ended the day lower, there are concerns domestic demand could see some pressures as the summer grilling season winds down. October lean hogs closed $1.05 lower at $82.55 and December lean hogs closed $.77 lower at $74.32. 

Cash hogs closed mixed with a very light negotiated run. Long-term demand concerns have put pressure on prices.  While export sales of US pork were up again this week, highlighting the strong demand for US pork on the global market, domestic consumption and demand appear to be slowing some.  Processors have been moving needed numbers without having to aggressively bid up.   The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.42 lower with a base range of $70 to $82.50 with a weighted average of $80.13; Iowa/Minnesota closed $.52 lower with a weighted average of $81.03; the Western Corn Belt closed $.70 higher with a weighted average of $81.03.  Prices at Eastern Corn Belt were not reported at midday due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings of $48 to $61.  Barrows and gilts were steady with moderate demand for moderate offerings at $57 to $67.  Boars ranged from $25 to $32 and $10 to $15. 

Pork values closed firm – up $.10 at $92.22.  Ribs were sharply higher.  Butts and bellies were higher.  Hams, picnics, and loins are lower. Estimated hog slaughter was 469,000 head – up 4,000 on the week and down 15,000 on the year.  Wednesday’s hog slaughter has been revised to 473,000 heads.