Market News

Hog futures up on steady to higher cash

Chicago Mercantile Exchange live cattle were mixed and feeders were modestly higher, waiting for the rest of the week’s direct business. April live was down $.27 at $195.72 and June was unchanged at $191.37. March feeders were up $.20 at $264.97 and April was $.27 higher at $265.25.

Direct cattle markets were mostly quiet. Very light business was reported Wednesday at $202 to $203 live and $320 dressed. That followed up Tuesday’s light activity at $203 on the live basis in the south, which was $3 lower than last week’s weighted average. Asking prices were $204+ live with bids of $202 to $203 live in Iowa and Nebraska and $320 dressed in Nebraska. With a winter storm impacting many of the major feeding areas at midweek, it looks like the rest of the week’s business will wait until at least Thursday. Wholesale beef continues to show signs of a lower longer-term trend.

Boxed beef closed lower, with Choice down $3.20 at $319.26 and Select beef $3.07 lower at $309.14 for a spread of $10.12. The estimated cattle slaughter of 120,000 head was down 1,000 on the week and 3,366 on the year.

At the OKC West Livestock Auction feeder cattle sale in El Reno, Oklahoma, compared to the previous week, steers were $1 to $2 lower, while heifers and calves were too lightly tested for an accurate comparison with a lower undertone. The USDA says demand was moderate, but movement was hampered by weather, with receipts down sharply on the week and the year. 72% of the offering were steers and 72% of all feeder cattle weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 700 to 800 pounds brought $263 to $284 and 800-to-900-pound steers ranged from $253 to $262.50. Medium and Large 1 feeder heifers weighing 400 to 500 pounds were reported at $321 to $360 with 500-to-600-pound heifers at $280 to $330.

Lean hog futures were supported by the steady to sharply higher cash business during the session. April was up $1.35 at $94.32 and May was $1.20 higher at $98.05.

Cash hogs were steady to higher with moderate closing negotiated numbers at the major direct markets. Those buyers at the major direct markets were generally in need of near-term supplies after the lighter movement on Monday and Tuesday. A winter storm in parts of the Midwest likely had some impact on movement. Domestic demand has shown some signs of improvement, but remains largely inconsistent, and while export demand is good, that could be impacted by tariffs. The USDA’s weekly U.S. sales numbers are out Thursday morning. The average barrow and gilt weight in the Iowa/Southern Minnesota/South Dakota reporting region for the week ending February 8^th was 290 pounds, down seven tenths on the week, but up 1.3 on the year.

National direct barrows and gilts closed $.70 higher with a base price range of $82 to $92 for a weighted average of $89.25, while Iowa/Southern Minnesota was up $1.39 at $90.25 and the Western Corn Belt was $1.36 higher at $90.21. The Eastern Corn Belt was not reported due to confidentiality. Butcher hogs in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $62.

Pork closed $1.09 lower at $98.63. Loins, butts, ribs, and bellies were down sharply, canceling out firm to modestly higher moves in picnics and hams. The estimated hog slaughter of 490,000 head was up 1,000 on the week and 1,043 on the year.