Market News

Hog futures supported by higher pork values

At the Chicago Mercantile Exchange, live cattle ended the day mostly higher and feeders were mixed watching direct business develop.  February live cattle closed $.80 lower at $115.32 and April live cattle closed $.42 higher at $123.12.  March feeder cattle closed $.35 lower at $139.15 and April feeder cattle closed $.12 lower at $143.37. 

Another round of light direct cash cattle trade took place on Thursday.  Live deals in the South were at $114, fully steady with Wednesday’s business and $1 higher than last week’s weighted averages.  Dressed deals in the North were around $180, also steady with the week’s previous business.  There was a scattered trade that took place late in the day on Wednesday, Southern live deals were at $114, about steady with last week’s business.  Northern dressed trade was at $180, about $1 higher than last week’s weighted average basis in Nebraska.  Look for more business to develop over the balance of the week. 

At the Sheridan Livestock Auction in Nebraska, compared to two weeks ago steers were $1 to $3 higher and heifers were $3 to $5 higher.  The USDA says the market was active despite inclement weather.  Top quality, ranch raised calves and feeders were on offer.  Demand was solid from start to finish.  Receipts were down on the week and the year.  Feeder supply included 43 percent steers and 37 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 503 to 512 pounds brought $176 to $179.25 and feeder steers 600 to 645 pounds brought $149 to $161.  Medium and Large 1 feeder heifers 472 to 491 pounds brought $163 to $167 and feeder heifers 554 to 578 pounds brought $148.75 to $159. 

Boxed beef closed steady to weak on moderate demand for light offerings.  Choice closed $.06 lower at $232.96 and Select closed $.67 lower at $220.29.  The Choice/Select spread is $12.67. 

Estimated cattle slaughter is 116,000 head – even on the week and down 7,000 on the year. 

Lean hog futures ended the day higher, supported by the sharply higher pork values during the session and continued demand optimism.  February lean hogs closed $.47 higher at $74.02 and April lean hogs closed $2.42 higher at $84.25. 

Cash hogs ended the day lower with a fairly light negotiated run.  The industry is optimistic demand for US pork will continue its strength both on the global market and here domestically. That has been largely supportive to prices.  But the heavy supplies and continued large slaughter runs do limit the market’s ability to move higher for a significant period of time. Barrows and gilt at the National Daily Direct closed $.30 lower with a base range of $55 to $70 for a weighted average of $64.96; the Iowa/Minnesota closed $.60 lower with a weighted average of $67.14; the Western Corn Belt closed $1.02 lower with a weighted average of $66.72.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $47. At Illinois, slaughter sow prices were firm with very good demand for heavy offerings at $42 to $54.  Barrow and gilt prices were $1 higher with good demand for moderate to heavy offerings at $41 to $47.  Boars ranged from $20 to $25 and $10 to $13. 

Pork values closed higher – up $2.01 at $88.87.  Bellies, butts, hams, and loins were all higher.  Picnics and ribs were lower. Estimated hog slaughter is 494,000 head – up 38,000 on the week and up 6,000 on the year.