Market News

Hog futures supported by demand expectations

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were higher ahead of Friday’s Cattle on Feed report, which was neutral.  April live cattle closed $.47 lower at $117.85 and June live cattle closed $.12 lower at $115.72.  April feeder cattle closed $1.60 higher at $133.85 and May feeders closed $.65 higher at $137.67. 

It was a quiet Friday for direct cash cattle trade activity following the light to moderate trade that took place on Thursday.  The week’s dressed business had a full range of $190 to $195, mostly $192, $4 lower than the previous week’s weighted average basis in Nebraska.  Live deals had a full range of $118 to $120, mostly $119 to $120, steady to about $1.50 lower than last week’s business.

At the Valentine Livestock Auction in Nebraska, the USDA says demand was very good for vaccinated replacement heifers and 700 to 800 pounds steers.  The internet bidding was active on lightweight grass steers.  Feeder supply included 59 percent steers and 41 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 657 to 684 pounds brought $163.50 to $175.50 and feeder steers 703 to 748 pounds brought $150 to $163.85.  Medium and Large 1 feeder heifers 608 to 645 pounds brought $136 to $148 and feeder heifers 705 to 747 pounds brought $132 to $140.75. 

At the South Dakota hay market this past week, there were just a few reported sales and alfalfa hay was steady.  The USDA says demand for alfalfa was moderate and the best demand remains from out of state dairies for large squares of higher testing alfalfa.  There was light demand from in-state buyers as the mild winter limited supplement hay feeding.  Alfalfa, good large rounds FOB brought $140.  Good, large rounds, delivered, brought $160.  Good large squares brought $180 to $185. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice is $1.46 higher at $283.77 and Select is $1.56 lower at $272.13.  The Choice/Select spread is $11.64.  Estimated cattle slaughter is 113,000 head – even on the week and up 28,000 on the year. Saturday’s estimated kill is 74,000 head – up 4,000 on the week and up 29,000 on the year.  

Lean hog futures ended the day higher, supported by higher midday pork values and long-term expectations.  May lean hogs closed $1.90 higher at $109.35 and June lean hogs closed $2.17 higher at $105.72. 

Cash hogs closed higher with a fairly light negotiated run.  Packers bid up to move their desired numbers on Friday afternoon.  Processors continue to monitor the availability of market-ready barrows and gilts.  Demand for US pork has been strong on both the global market and domestically, which has been very supportive to prices.  The industry expects that to continue. Barrows and gilts at the National Daily Direct closed $.89 higher with a base range of $102 to $115 and a weighted average of $108.19; the Iowa/Minnesota closed $1.71 higher with a weighted average of $113.45; and the Western Corn Belt closed $1.81 higher with a weighted average of $112.64.  The Eastern Corn Belt was not reported due to confidentiality. 

According to the USDA’s National Feeder Pig report, early-weaned pigs and all feeder pigs were $2 per head lower.  Demand was moderate for moderate offerings and receipts included 55 percent formulated prices.  The Total Composite Cash range was $42 to $59 with a weighted average of $50.94 and the Total Composite Formula Range was $37.53 to $58.83 with a weighted average of $46.73.  The weighted average for all early-weaned pigs was $48.44 and the average for all feeder pigs was $99.70.

Butcher hog prices at the Midwest cash markets are $2 lower at $62. At Illinois, slaughter sow prices were weak with moderate demand for light offerings at $55 to $65.  Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $67 to $75.  Boars ranged from $40 to $45 and $15 to $18. 

Pork values closed lower – down $2.76 at $111.94.  Bellies closed nearly $14 lower.  Loins, picnics, and butts were also lower.  Hams and ribs were higher.   Estimated hog slaughter is 474,000 head – up 6,000 on the week and up 114,000 on the year. Saturday’s estimated kill is 63,000 head – down 12,000 on the week and down 123,000 on the year.