Market News

Hog futures supported by cash and wholesale business

At the Chicago Mercantile Exchange, live cattle were mixed, feeders were higher, waiting for the week’s direct trade to develop. June live cattle closed $.25 higher at $208.25 and August live cattle were unchanged at $204.10.  May feeder cattle closed $1.45 higher at $290.52 and August feeder cattle closed $1.60 higher at $294.30. 

It took all week for direct cash cattle trade to develop, and it was worth the wait.  Live deals in Kansas were noted at $213, that’s $3 higher than the previous week’s weighted averages and deals in Texas were at $212, $2 higher than the previous week’s weighted averages.  In Nebraska, live deals were marked at $217, $4 higher than the prior week’s business.

At the Valentine Livestock Auction in Nebraska, no recent comparison was available for steers or heifers.  The USDA says demand was good with several buyers both in house and online.   There were several consignments of groups of calves,  several cow half pairs, and some bred cow dispersal.  Receipts were up on the week and the year.  Feeder supply included 56 percent steers and 14 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 593 pounds brought $359 to $400.50 and feeder steers 615 to 648 pounds brought $320 to $344.  Medium and Large 1 feeder heifers 456 to 497 pounds brought $320 to $364 and feeder heifers 558 to 577 pounds brought $312 to $329.

In Missouri this past week, there is ample moisture, and it should help get pastures and hay fields green up.  According to the latest Crop Progress and Conditions report, 69 percent of the state’s pastures are rated good to excellent.  Hay prices have been steady to weak with light to moderate supply.  Alfalfa, supreme, medium squares brought $250 to $300.  Alfalfa, supreme, small squares brought $10 to $15.  Alfalfa, premium, medium squares, brought $175 to $225.  Alfalfa, good, large rounds, brought $150 to $175. Alfalfa, good, small squares, brought $6 to $10.  Alfalfa, fair, large rounds, brought $125 to $150. Mixed grass, good/premium, large rounds, brought $125 to $200.  Mixed grass, fair/good, large rounds, brought $80 to $125.  Mixed grass, fair/good, small squares, brought $3.50 to $8.  Mixed grass, fair, large rounds, brought $25 to $50.

Boxed beef closed sharply higher on solid demand for fairly light offerings.  Choice was $2.78 higher at $336.48 and Select closed $3.76 higher at $320.11.  The Choice/Select spread is $16.37. Estimated cattle slaughter was 82,000 head – down 7,000 on the week and down more than 29,000 on the year.  Saturday’s estimated kill is 7,000 head – down 3,000 on the week and down more than 4,500 on the year.

Lean hog futures closed higher, supported by stronger cash and wholesale business during the session.  May lean hogs closed $.85 higher at $92.80 and June lean hogs closed $1.22 higher at $101.15. 

Cash hogs closed higher with a fairly light negotiated run.  Processors were able to move their needed numbers without having to get too aggressive in their procurement efforts.  Demand for U.S. pork on the global market, outside of China, has been relatively strong. However, concerns continue about the potential for trade disruptions as China has stopped making ag purchases in recent weeks. It’s also keeping a close eye on domestic demand, which could see a boost as grilling season is just around the corner. Barrows and gilts at the National Daily Direct closed $.08 higher with a base range of $86 to $94 and a weighted average of $91.39; the Iowa/Minnesota closed $.33 higher with a weighted average of $92.35; the Western Corn Belt closed $.66 higher with a weighted average of $92.27; no comparison at the Eastern Corn Belt but a weighted average of $88.44.

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were $3 higher and feeder pigs were steady.  Demand was good for limited offerings.  The weighted average for early-weaned pigs was $45.30 and the weighted average for all feeder pigs was $82.94.

Butcher hog prices at the Midwest cash markets are steady at $63. 

Pork values closed sharply higher – up $2.18 at $98.04.   Bellies were sharply higher.  Loins and butts were up.  Hams, picnics, and ribs were all lower.