Market News

Hog futures up on technical buying

At the Chicago Mercantile Exchange, live and feeder cattle were down sharply as the market faces pressure from several different sides.  February lives closed $2.20 lower at $199.67 and April lives closed $2.12 lower at $196.  March feeder cattle closed $3.35 lower at $264.77 and April feeder cattle closed $2.80 lower at $264.97. 

A light direct cash cattle trade developed on Tuesday.  Live deals were marked at $203 in the South, that’s $2 to $3 below the previous week’s weighted averages.  Bids didn’t surface in other parts of cattle country on Tuesday.  Look for more business to develop over the balance of the week. 

At the Tri-State Livestock Auction in Nebraska, steers 550 to 700 pounds were $5 to $10 lower and steers over 700 pounds were $5 to $7 higher. Heifers 550 pounds were $9 higher, while the rest of the heifer offering ranged from $5 to $15 lower.  The USDA says demand was moderate to good.  Receipts were down on the week and the year.  Feeder supply include 50% steers and 47% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 662 pounds brought $293 and feeder steers 959 pounds brought $261.25.  Medium and Large 1 feeder heifers 588 to 595 pounds brought $309 to $312 and feeder heifers 692 pounds brought $273.50. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was $1.04 lower at $322.46 and Select closed $1.71 lower at $312.21.  The Choice/Select spread is $10.25.  Estimated cattle slaughter was 122,000 head – even on the week and down about 2,000 on the year.

Lean hog futures ended the day higher on technical buying.  February lean hogs closed $1.02 higher at $88.72 and April lean hogs closed $1.35 higher at $92.97. 

Cash hogs had no comparison but a solid negotiated run.  Demand remains the story for the hog market.  Globally, U.S. pork continues to perform well.  But, there are long-term domestic demand uncertainties that linger creating added volatility to the market.  The industry continues to monitor the availability of market-ready hogs and hog weights to ensure supplies of pork are keeping up with the uptick in slaughter pace. Barrows and gilts at the National Daily Direct had a base range of $79 to $90 and a weighted average of $88.55; the Iowa/Minnesota had a weighted average of $88.86; the Western Corn Belt had a weighted average of $88.85; the Eastern Corn Belt had a weighted average of $86.74. 

Butcher hog prices at the Midwest cash markets are $2 lower at $62. At Illinois, slaughter sow prices were $2 higher with moderate demand for moderate offerings at $51 to $63.  Barrows and gilts are $2 higher with moderate demand for moderate offerings at $50 to $60.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed firm – up $.10 at $99.72.  Bellies and butts were both higher.  Picnics were firm.  Hams, loins, and ribs were weak to sharply lower. Estimated hog slaughter was 491,000 head – up 1,000 on the week and up about 5,000 on the year.