Market News

Hogs futures higher on stronger pork values during the session

At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were mostly lower ahead of the week’s direct cash business. October live cattle closed $.05 higher at $179.05, and December lives closed $.20 lower at $178.05. September feeder cattle closed $.67 lower at $240.57, and October feeders closed $.20 lower at $239.02. 

Direct cash cattle trade activity was quiet on Tuesday.  Bids remain elusive.  Asking prices in the South were at $188 to $190 live, while the North stayed quiet.  Look for significant trade volume to hold out until sometime Thursday or Friday.

At the OKC West Livestock Auction in Oklahoma, weaned steer and heifer calves sold $5 lower.  Short or un-weaned calves were sharply, mostly $10 to $15 lower.  Demand is light as the high heat continues.  Receipts were down on the week and the year.  Feeder supply included 33% steers and 19% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 577 pounds brought $297.50 and feeder steers 603 pounds brought $297.50.  Medium and Large 1 feeder heifers 563 to 566 pounds brought $262.50 to $270. 

Boxed beef closed lower on light demand for heavy offerings.  Choice was $2.13 lower at $315.81 and Select closed $.44 lower at $299.62.  The Choice/Select spread is $16.19. Estimated cattle slaughter was 122,000 head – down 1,000 on the week and down about 1,500 on the year.   

Lean hog futures ended the day higher, supported by stronger pork values during the session and contracts’ discount to the cash index. October lean hogs closed $.67 higher at $76.40 and December lean hogs closed $.35 higher at $68.95. 

Cash hogs closed sharply higher with a huge negotiated run. Processors ramped up their procurement efforts and bid up to move needed numbers.  Global demand for U.S. pork remains a bright spot and continues to bring opportunity for the industry and provide some price support.  But, there’s a lot of uncertainty hovering around domestic demand.  The industry also is monitoring the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $8.97 higher with a base range of $74 to $86.50 and a weighted average of $85.88; there’s no comparison at the Iowa/Minnesota, but a weighted average of $85.38; the Western Corn Belt had a weighted average of $85.52.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $55. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $43 to $55.  Barrows and gilts were $1 lower with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $18 to $28 and $8 to $15.

Pork values closed lower – down $1.97 at $102.31. Hams, bellies, and butts were sharply lower.  Ribs were lower.  Picnics and loins were higher. Estimated hog slaughter was 482,000 head – up 1,000 on the week and up about 9,000 on the year.