Market News

Hog futures supported by strong cash business

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of widespread direct business.  Feeders had some pressure from the mostly higher move in corn.  August lives closed $1.87 lower at $174.95 and October lives closed $1.45 lower at $177.87.  August feeders closed $3.20 lower at $244.70 and September feeders closed $3.22 lower at $248.15. 

It was another quiet day for direct cash cattle business.  Bids and asking prices didn’t surface Wednesday.  Showlists are higher across all major feeding areas for the week.  Look for significant trade volume to take place sometime Thursday or Friday.

In Missouri last week, feeders were steady to $5 higher.  Sales last week were very uneven to start, and around mid-week moved higher.  The USDA says the supply of feeders was moderate to heavy.  Demand was moderate to good for calves and feeders.  Drought conditions continue to worsen in parts of the state putting more pressure on producers.  Feeder supply included 55% steers and 53% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 648 pounds brought $210 to $299.75 for an average price of $263.75 and feeder steers 800 to 843 pounds brought $212.50 to $243 for an average price of $233.41.  Medium and Large 1 feeder heifers 601 to 648 pounds brought $180 to $255 for an average price of $255.89 and feeder heifers 651 to 691 pounds brought $203 to $250.85 for an average price of $237.89.

Boxed beef closed sharply lower on light demand for moderate offerings.  Choice was $5.56 lower at $322.78 and Select closed $1.61 lower at $292.69.  The Choice/Select spread is $30.09.  Estimated cattle slaughter was 128,000 head – up 2,000 on the week and the year. 

Lean hog futures ended the day mostly higher, supported by higher cash and wholesale business.  August lean hogs closed $3.12 higher at $97.45 and October lean hogs closed $.95 higher at $80.55. 

Cash hogs closed higher with a solid negotiated run.  Processors were more aggressive in their procurement efforts and bid up to move needed numbers.  That doesn’t come as a huge surprise following Monday’s business and the Tuesday holiday.  Demand for US pork has remained relatively strong on the global market, and that is expected to continue.  Domestic demand has also been strong, both provide at least some price support. Barrows and gilts at the National Daily Direct closed $1.66 higher with a base range of $86 to $100 and a weighted average of $98.32, the Iowa/Minnesota closed $1.06 higher with a weighted average of $98.32; the Western Corn Belt, closed $1.07 higher with a weighted average of $98.31; the Eastern Corn Belt closed $4.28 higher with a weighted average of $98.37.

Butcher hog prices at the Midwest cash markets are steady at $68. At Illinois, slaughter sow prices were $3 higher with moderate demand for heavy offerings at $28 to $39.  Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed higher – up $1.20 at $109.20.  Bellies were sharply higher.  Ribs and butts were higher.  Hams, picnics, and loins closed lower.  Estimated hog slaughter was up 476,000 head – up 16,000 on the week and even on the year.