Market News

Hog futures down on demand uncertainties

 

Chicago Mercantile Exchange live cattle futures were higher, supported by technical buying, with traders watching the distribution of this week’s direct cash cattle showlist. The trade’s also watching for potential disruptions to animals or movement from winter weather in parts of the Midwest and Plains. February was $1.65 higher at $123.55 and April was up $1.25 at $123.97.

Feeder cattle were mostly higher on spread trade, technical buying, and spillover from live cattle, getting ready for the week’s direct business. January was the only contract in the red, down $.05 at $147.90, and March was up $.22 at $145.82.

Direct cash cattle markets are quiet with buyers and sellers getting a look at this week’s showlist. Last week’s trade was mainly at $123 on the live basis and $195 dressed, with mixed trade volume and formula totals. This week’s showlist also looks mixed, bigger in Texas, smaller in Colorado, Kansas, and Nebraska. The week’s trade and weight gains could be impacted by a winter storm in some of the major U.S. feeding areas. Asking prices were not established and packer inquiry was non-existent. Widespread business is expected to wait until the second half of the week.

Boxed beef closed mixed on light to moderate demand for moderate offerings. Choice was up $.21 at $205.07 and Select was down $.64 at $199.52. The estimated cattle slaughter of 88,000 was down 30,000 on the week and 25,000 on the year.

At the Oklahoma National Stockyards in Oklahoma City Monday, feeder steers weighing 600 to 850 pounds were steady to $3 lower, with a lighter test on steers weighing 850 to 1,000 pounds. In a limited test, feeder heifers were steady to $3 higher. The USDA says that at midsession, demand was moderate to good for the average to attractive, larger than normal offering. Medium and Large 1 feeder steers weighing 600 to 700 pounds sold at $155 to $167 and 700 to 800 pound steers ranged from $144 to $157. Medium and Large 1 feeder heifers weighing 600 to 700 pounds were reported at $138 to $145 and 700 to 800 pound heifers brought $132 to $141.

Lean hog futures were lower in quiet activity on the weak midday pork and demand uncertainties, along with a lack of follow through interest after some attempted higher trade. Except for February 2018, hog contracts are at a premium to the cash index. February was down $.27 at $71.80 and April was $.37 lower at $75.12.

Cash hogs were steady to modestly higher. The market’s assessing the available numbers, while keeping an eye on a winter storm in parts of the Midwest, which does appear to be affecting movement during the early part of this week. Last week’s negotiated sales were a little lighter than anticipated with the weekly total only slightly ahead of last year, impacted by both a holiday and adverse weather conditions. Processing margins are good, but have tightened, and there’s a lot of uncertainty about trade, some of which are connected to NAFTA. Negotiations on the trade pact are scheduled to resume Tuesday in Montreal. Mexico and Canada are two of the biggest buyers of U.S. pork.

Pork closed $.73 higher at $82.17. Loins, picnics, hams, and bellies were firm to higher, bellies were up $5.49, while butts and ribs were lower. The estimated hog slaughter of 405,000 head was 12,000 above last week, but 35,000 below last year.

Iowa/Southern Minnesota direct barrows and gilts closed $.40 higher at $62 to $70 with a weighted average of $69.66, the Western Cornbelt was up $.62 at $62 to $70 for an average of $69.64, and national direct business was $.44 higher at $62 to $70 for an average of $69.67. Butcher hogs at the Midwest cash markets were steady at $44 to $48. Missouri direct butchers were steady to $1 higher at $62 to $63 on light to moderate supply and demand. Sows were steady to $2 higher at $28 to $38. Illinois sows were firm at $30 to $43 on moderate demand for light to moderate offerings. Barrows and gilts were steady at $43 to $50 on moderate to good demand for moderate offerings. Boars ranged from $7 to $25.