Market News

Hog futures up on midday pork strength

Chicago Mercantile Exchange live and feeder cattle futures were lower, pressured by last week’s direct business and watching the distribution of this week’s show list. April live was down $.40 at $192.25 and June was $.67 lower at $188.10. April feeders were $1.95 lower at $272.05 and May was down $.92 at $270.20.

Direct cattle markets were quiet. The day’s big feature was the distribution of this week’s show list, which looks mixed, larger in Kansas, but smaller in Texas, Nebraska, and Colorado. Last week, there was light trade Thursday and Friday, mostly at $197 on the live basis in the south, and $313 dressed in the north, both $2 lower than the previous week’s weighted averages. Last week’s live sales in the north were primarily at $198. Formula totals were up on Kansas and Texas, down in Nebraska, while trade volume totals were higher in all three states.

At midsession for the Oklahoma National Stockyards, compared to the previous week, feeder steers and heifers were steady to mostly $3 lower. Stocker steers and steer calves were $10 to $15 higher, while stocks heifers and heifer calves were mostly steady. The USDA says demand for feeder cattle was moderate to good, very good for stockers and calves, especially steers, with receipts up on the week and the year. 56% of the offering were heifers and 60% weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 500 to 600 pounds were reported at $324.50 to $380 and 800-to-850-pound steers sold at $254 to $267. Medium and Large 1 feeder heifers weighing 600 to 700 pounds ranged from $261.25 to $308 and 700-to-800-pound heifers brought $244.25 to $263.

Boxed beef closed higher with light movement. Choice was up $2.10 at $313.93 and Select beef was $.36 higher at $302.41 for a spread of $11.52. The estimated cattle slaughter of 102,000 head was up 7,000 on the week, but down 15,485 on the year.

Lean hog futures were up on the midday strength in pork, but gains were limited by the quiet cash during the session, along with the sustained domestic and export demand questions. April was $.02 higher at $83.70 and May was up $.25 at $87.67.

Cash hogs were steady to lower with very light closing negotiated numbers at the major direct markets. Like a lot of recent Mondays, buyers eased into the week, getting a look at the available ready numbers and demand. New tariffs on key U.S. trading partners are set to go into effect Tuesday and are expected to impact export demand. On the domestic side of things, the wholesale market has been very volatile over the past few days, with extremely wide price swings for most of the individual cuts, especially the belly primal.

National direct barrows and gilts closed $1.61 lower with a base price range of $84 to $93 for a weighted average of $88.41. Iowa/Southern Minnesota had a five-day rolling average of $89.70, with the Western Corn Belt at $89.63 and the Eastern Corn Belt at $89.31. Butcher hogs in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $62. Illinois direct sows were steady at $63 to $75 with moderate demand and offerings. Barrows and gilts were steady at $51 to $61 on moderate demand for moderate offerings. Boars ranged from $15 to $30.

Pork closed up $1.37 at $99.79. Bellies had a somewhat muted gain of just $5.55, with loins, butts, picnics, and hams also higher, while ribs were lower. The estimated hog slaughter of 490,000 head was unchanged on the week and up 4,836 on the year.