Market News

Hog futures supported by cash, wholesale business

 

Chicago Mercantile Exchange live cattle futures were higher ahead of widespread direct cash business. Contracts are at a discount to last week’s direct trade. The market’s also preparing for Friday’s USDA Cattle on Feed report. April was $.92 higher at $118.97 and June was up $.37 at $105.27.

Feeder cattle were firm to higher on spread activity and position squaring ahead of direct trade and the on-feed numbers. April was up $.02 at $138.75 and May was $.42 higher on $140.67.

Direct cash cattle markets were generally quiet. Light trade was reported in Nebraska at $185.50 to $186.50 dressed. DTN says those sales were for delayed delivery but didn’t give a timeframe. Asking prices stayed around $122+ on the live basis and $192+ for dressed, with a handful of bids at $116 in Kansas and $190 in Nebraska. Unless both sides get more interested in doing business, widespread trade could wait until after Friday’s USDA numbers, out at 3 PM Eastern/2 Central. This week’s offering at the Fed Cattle Exchange is 3,220 head, with 499 head selling. 161 head were for 1 to 9-day delivery, averaging $122.71, up $5 on the week, and 338 head were for 17 to 30-day delivery, averaging $120, an increase of $6. The next event is scheduled for Wednesday, April 25th.

Boxed beef closed lower on light to moderate demand for heavy offerings. Choice was down $.49 at $211.64 and Select was $1.01 lower at $198.57. The estimated cattle slaughter of 119,000 head was unchanged on the week and up 3,000 on the year.

At the Winter Livestock Auction feeder cattle sale in Kansas, compared to the previous week, steers weighing 700 to 1,000 pounds were $2 to $5 higher, while a light supply of Medium and Large 1 heifers weighing 700 to 950 pounds were also $2 to $5 higher. The USDA says trade was active with good demand. Medium and Large 1 feeder steers weighing 700 to 800 pounds were reported at $137 to $154 and 800 to 900-pound steers brought $130.25 to $141.50. Medium and Large 1 feeder heifers weighing 700 to 800 pounds ranged from $127 to $133.25 and 800 to 900-pound heifers sold at $120 to $126.60.

Lean hog futures were supported by steady to sharply higher cash during the session and the sharply higher midday move in pork. Both the cash and the wholesale markets are showing further signs of supportive seasonal factors. Most contracts remain at a significant premium to the cash index. June was $1.77 higher at $78.52 and July was up $1.82 at $81.05.

Cash hogs were steady to sharply higher, with very strong closing negotiated sales for the major direct markets. After a couple of days of no better than moderate closing negotiated sales, buyers finally raised bids enough to move the needed numbers. Seasonally, market ready supplies are getting tighter, but this week’s kill may still top 2.4 million head, with the contraction really expected to get underway late this month or early next month. Domestic pork demand may start to see its seasonal improvement once temperatures start warming up. The average Iowa/Southern Minnesota barrow and gilt weight for the week ending April 14th was 285.2 pounds, down 1.3 on the week, but up 1.4 on the year.

Pork closed $.25 higher at $68.46. Loins, butts, picnics, and ribs were firm to higher, while hams and bellies were lower. The estimated hog slaughter of 462,000 head was 4,000 less than last week, but 18,000 more than last year.

Iowa/Southern Minnesota direct barrows and gilts closed $2.00 higher at $46 to $57.50 for a weighted average of $54.81, the Western Cornbelt was up $1.77 at $46 to $57.50 with an average of $54.75, and national direct business was $1.92 at $46 to $57.50 for an average of $54.19. Butcher hogs at the Midwest cash markets were steady to $1 higher at $33 to $35.50. Missouri direct butchers were steady to $1 higher at $43 to $48 on light to moderate supply and demand. Sows were steady at $25 to $40. Illinois direct sows were steady at $30 to $46 with moderate demand for moderate to heavy offerings. Barrows and gilts were $1 higher at $30 to $38 on moderate demand for moderate offerings. Boars ranged from $8 to $17.