Market News

Hog futures supported by cash business

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were higher ahead of the week’s direct business and Friday’s On Feed numbers.   December live cattle were down $0.27 at $186.30 on February lives were down $.07 at $187.92.  January feeder cattle closed $.32 higher at $252.32 and March feeder cattle closed $.15 higher at $251.40. 

Another quiet day for direct cash cattle trade activity.  The lone bid to have surfaced was in the North at $290 dressed.  Asking prices in the South were at $187 to $188 live, while the North remained quiet.  Look for significant trade volume to hold out until sometime Thursday or Friday.

At the Ozarks Regional Stockyards in Missouri, feeder steers and heifers over 650 pounds were steady to $4 higher. Steer calves under 650 pounds were $10 to $15 higher with spots of $20 higher.  Heifer calves under 650 pounds sold $5 to $10 higher.  The USDA says demand was good on stocker and feeder calves, and very good on peewee calves.  supply was moderate and higher than normal for this time of year.  Receipts were down on the week and up on the year.  Feeder supply included 55% steers and 34% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 501 to 540 pounds brought $314 to $338 and feeder steers 608 to 637 pounds brought $259 to $265.  Medium and Large 1 feeder heifers 507 to 544 pounds brought $260 to $277.50 and feeder heifers 651 to 665 pounds brought $239 to $244.

Boxed beef closed lower with light demand for moderate offerings.  Choice was $2.40 lower at $306.39 and Select closed $.92 lower at $270.99.  The Choice/Select spread is $35.40. Estimated cattle slaughter was 127,000 head – up 2,000 on the week and nearly even on the year.

Lean hog futures ended the day higher supported by cash and wholesale business during the session. December lean hogs closed $.97 higher at $80.52 and February lean hogs closed $1.60 higher at $84.47.

Cash hogs closed higher with a moderate negotiated run.  Processors were more aggressive their procurement efforts and bid up to move needed numbers. The industry continues monitor the availability of market-ready hogs as it monitors supplies.  Hog weights are up almost a pound on the week, but are still below year-ago levels. Demand for U.S. pork on the global market continues to be strong, helping provide some price support.  But domestic demand has been sluggish – and its inconsistency is adding uncertainty to the market. Barrows and gilts at the National Daily Direct were $2.55 higher with a base range of $76 to $86 and a weighted average of $85.04; the Iowa/Minnesota was $1.80 higher with a weighted average of $85.37; the Western Corn Belt closed $2.22 higher with a weighted average of $85.20.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were $2 lower with moderate demand for moderate offerings at $49 to $60.  Barrows and gilts were steady with moderate demand for moderate offerings at $47 to $57.   Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed weak – down $.08 at $94.60. Bellies, ribs, butts, and loins were sharply lower to lower.  Hams and picnics were both sharply higher. Estimated hog slaughter was 488,000 head – down 1,000 on the week and up nearly 40,000 on the year.