Market News

Lean hog futures higher on technical support

At the Chicago Mercantile Exchange, cattle futures ended the day higher on technical buying as the entire livestock market looks to found at least some temporary support.  February live cattle closed $.72 higher at $118.10 and April live cattle closed $.92 higher at $120.37.  January feeder cattle closed $1.25 higher at $145.60 and March feeder cattle closed $1.27 at $143.92.

Direct cash cattle trade has been quiet.  Some bids have been reported in parts of the South at $118.00.  Asking prices are around $122.00 to $123.00 in the South and $195.00 in the North.  Significant trade volume could easily be delayed until the latter part of the week.

Boxed beef is sharply lower on light to moderate demand and moderate to heavy offerings.  Choice is $2.45 lower at $205.58 and Select is down $2.15 lower at $199.89.

At the Tri-State Livestock Auction in Nebraska steers and heifers were steady to $4.00 higher with the exception of heavier weight steers, which were $3.00 lower.  Receipts totaled 2,360 – and were down on the week. The USDA says demand was good for all cattle offered.  Feeder supply included 57 percent steers and 69 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 612 to 642 pounds were $163.00 to $168.00 and Medium and Large 1’s 764 to 787 pounds were $150.00 to $153.25.  Feeder heifers, Medium and Large 1’s 620 to 646 pounds were $141.00 to $147.75 and Medium and Large 1’s 701 to 744 pounds were $136.00 to $140.00.

Estimated cattle slaughter is 118,000 head – even with last week and up 8,000 on the year.

Lean hog futures ended the day sharply higher on technical buying with additional support moving back into the market.  Demand strength has also been supportive – as were the firm move in wholesale values at midday. February lean hogs closed $2.32 higher at $73.90 and April lean hogs closed $1.82 higher at $76.15.

Cash hogs ended the day firm with a higher undertone. Buyers and sellers are watching the availability of market-ready numbers.  We typically begin to see a seasonal slide in slaughter numbers, inclement weather has likely contributed to a backup in supply and could support larger kill totals into the very near future.  Barrows and gilts at the Iowa/Southern Minnesota ended the day $.48 higher with a range of $64.00 to $71.50 and a weighted average of $70.52; the Western Corn Belt ended the day $.23 higher with a range of $62.00 to $71.50 and a weighted average of $69.97; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.10 higher with a range of $62.00 to $71.50 and a weighted average of $69.93.

Butcher hogs at the Midwest cash markets are steady to $1.00 higher at $43.00 to $50.00.

At the Interior Missouri Direct, barrows and gilts are steady to $2.00 higher at $60.00 to $62.00 with light to moderate supply and demand.  Sows are steady to $2.00 higher at $28.00 to $36.00.

At Illinois, slaughter sow prices are steady at $26.00 to $40.00 with moderate demand for moderate offerings.  Barrows and gilts are steady at $43.00 to $50.00 with moderate to good demand for moderate offerings.

Pork values ended the day weak – down $.38 at $80.71.  The primals ended the day mostly lower with a more than $4.00 drop in the butt.

Estimated hog slaughter is 466,000 up 10,000 on the week and up 40,000 on the year.

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