Market News

Hog futures supported by higher pork

 

Chicago Mercantile Exchange live cattle futures were mixed, watching the distribution of this week’s showlist, with nearby contracts supported by the week to date’s boxed beef strength. February was up $.20 at $130.30 and April was $.07 higher at $127.72.

Feeder cattle were mostly modestly higher on the higher midday boxed beef, weak corn, and traders watching the distribution of this week’s showlist. March was $.07 higher at $149.80 and April was up $.05 at $152.45.

Direct cash cattle markets were quiet. Both sides continued to digest last week’s late developing business, while watching the distribution of this week’s new showlist. Last week’s business was mostly at $130 on the live basis, up $4 on the week, and $205 dressed, $5 higher. Formula totals were mixed, up in Texas, down in Kansas and Nebraska, but trade volume was higher in all three states. This week’s showlist looks mixed, bigger in Colorado and Kansas, smaller in Nebraska and Texas. If the last couple of weeks are any indication, widespread business won’t develop until the second half of the week. Fed Cattle Exchange results are out Wednesday, with an offering of 218 head.

Boxed beef closed sharply higher on moderate to good demand for light to moderate offerings. Choice was up $3.35 at $215.92 and Select was $2.97 higher at $210.40. The estimated cattle slaughter of 117,000 head was unchanged on the week and up 2,000 on the year.

At the Oklahoma National Stockyards, compared to the previous week, feeder steers were $1 to $5 higher and feeder heifers were steady to $2 higher, with the best gains on thinner fleshed cattle that could head to pasture. Steer calves were $3 higher and heifer calves were $4 to $8 higher, but both were lightly tested. The USDA says demand for all classes was good. 61% of the weekly run were steers and 74% of the total offering weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds were reported at $156 to $176 and 700 to 800 pound steers brought $148 to $160. Medium and Large 1 feeder heifers weighing 600 to 700 pounds ranged from $141 to $155.50 and 700 to 800 pound heifers sold at $131 to $145.

Lean hog futures were supported by oversold signals, the sharply higher midday pork, and expectations for at least some disruption in cash movement because of winter weather in parts of the Plains and Midwest. April was up $1.05 at $69.20 and June was $1.22 higher at $80.95.

Cash hogs were steady to lower. Buyers followed through on last week’s efforts to spend less and improve margins, watching market ready numbers and wholesale business. Chain speed has slowed down over the last several days, with the USDA lowering last Friday’s slaughter estimate by 19,000 head, to 443,000, and Monday’s projection by 13,000, to 436,000.

Pork closed $1.36 higher at $79.72. All primal cuts were firm to higher, including $2.17 gains in both loins and picnics. The estimated hog slaughter of 443,000 head was down 19,000 on the week and 5,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $.18 lower at $58 to $65 for a weighted average of $64.41, the Western Cornbelt was down $.24 at $58 to $65 with an average of $64.36, and national direct business was $.15 lower at $58 to $65 for an average of $64.29. The Eastern Cornbelt had no recent comparison with a range of $63 to $64.50 and a weighted average of $64.18. Butcher hogs at the Midwest cash markets were steady at $41 to $48. Missouri direct butchers were $3 lower at $61 to $62 on light to moderate supply and demand. Sows were steady to $38 lower at $38 to $54. Illinois direct sows were mixed at $42 to $59 with moderate demand for moderate to heavy offerings. Barrows and gilts were steady at $40 to $46 on light to moderate demand for moderate offerings. Boars ranged from $10 to $28.