Market News

Hog futures were lower ahead of the USDA’s quarterly inventory report

At the Chicago Mercantile Exchange, live and feeder cattle were higher, getting ready for widespread direct business. April live cattle closed $2.47 higher at $209.55 and June live cattle closed $2.77 higher at $205.80.  April feeder cattle closed $1.67 higher at $287.55 and May feeder cattle closed $1.35 higher at $286.52. 

Direct cash cattle trade activity was quiet again on Thursday.  Bids did surface in the North at $213 live, while the rest of cattle country was quiet.  Asking prices were at $211 to $212 live out of the South.  Look for significant trade volume to hold out until sometime Friday.  There were a handful of scattered deals reported on Wednesday, but not enough business to establish an accurate price trend.

At the Hub City Livestock Auction, steers 600 to 649 pounds and 750 to 799 pounds were steady.  Steers 650 to 749 pounds were $5 to $7 lower.  Steers 800 to 999 pounds were $4 to $6 higher.  Heifers 600 to 649 pounds and 750 to 799 pounds were mostly steady.  Heifers 650 to 699 pounds were $3 to $6 higher.  The USDA says demand was good to very good for another large offering of feeder cattle.  There were less grass and backgrounding-type cattle this week and more finishing-type cattle offered.  Flesh condition varied, from moderate to heavy, more flesh overall than last week.  Receipts were up on the week.  Feeder supply included 56% steers and 89% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 663 to 689 pounds brought $342.50 to $366 and feeder steers 701 to 744 pounds brought $305.75 to $321.  Medium and Large 1 feeder heifers 600 to 644 pounds brought $297 to $317 and feeder heifers 651 to 688 pounds brought $290 to $307. 

Boxed beef closed mixed with light to solid demand for moderate offerings.  Choice was $2.58 lower at $335.72 and Select closed $2.91 higher at $319.44.  The Choice/Select spread is $16.28.  Estimated cattle slaughter was 119,000 head – up 5,000 on the week and up about 2,000 on the year.  

Lean hog futures closed lower on profit-taking and position squaring ahead of the quarterly inventory numbers. April lean hogs closed $.52 lower at $87.02 and May lean hogs closed $.67 lower at $88.85. 

Cash hogs closed mixed with a solid negotiated run. Demand for U.S. pork has been solid and there was a definite bounce-back in this week’s Export Sales report from the USDA.  There’s some optimism that domestic demand could see a boost as pork is a more competitively priced protein in the retail space.  Hog weights were up again this week, which means supplies of pork are plentiful right now. Barrows and gilts at the National Daily Direct closed $.10 lower with a base range of $85 to $92 and a weighted average of $88.09.  The Iowa/Minnesota closed $.08 higher with a weighted average of $87.88; the Western Corn Belt closed $.31 lower with a weighted average of $87.92. Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $57 in Red Oak, Iowa and $60 in Dorchester, Wisconsin. 

Pork values closed lower – down $.81 at $94.84.  Bellies, picnics, and butts were all lower.  Hams, ribs, and loins were up. Estimated hog slaughter was 489,000 head – up 24,000 on the week and up about 1,000 on the year.