Market News

Hog futures lower on profit taking

At the Chicago Mercantile Exchange, cattle futures closed lower on lack of fundamental support.  The beef supply is large and there is concern about demand certainty.  August live cattle closed $.35 lower at $109.07 and October live cattle closed $.42 lower at $110.45.  August feeder cattle closed $1.32 lower at $149.62 and September contracts closed $.72 lower at $151.10.

Direct cash cattle trade is quiet today.  Bids and asking prices not well defined.  This week’s showlists appear to be mixed – larger in Texas but somewhat smaller in Kansas, Nebraska, and Colorado.  Overall the number of ready steers and heifers looks to be even with last week.  Look for significant trade volume to develop in the latter half of the week.

At Mid-Session, at the Joplin Regional Stockyards in Missouri, receipts are down on the week and up on the year.  Compared to last week, steer and heifer calves and yearlings are steady to $3 higher.  Feeder supply included 50 percent steers and 51 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 600 pounds are priced $157 to $176 and feeder steers 700 to 800 pounds are $145 to $159.50.  Medium and Large 1 feeder heifers 500 to 600 pounds are $144 to $158 and feeder heifers 700 to 800 pounds are $135 to $144.

Boxed beef cutout values closed higher to sharply higher on moderate to good demand and moderate offerings.  Choice up $2.60 at $213.98 and Select up $1.37 at $202.29.  The Choice/Select spread is $11.69. Estimated cattle slaughter is 118,000 head – even on the week and up 1,000 on the year.

Lean hog futures closed sharply lower on profit taking and contracts premium to cash.  Today’s move might have corrected last week’s rally – but it’s not likely to end it.  Concerns about another case of African Swine Fever found in China and the fact that the US and Mexico are inching closer on a trade deal could help the market find some momentum.  October lean hogs closed $2.12 lower at $56.47 and December lean hogs closed $1.05 lower at $54.22.

Cash hogs closed weak to lower with large negotiated purchase totals.  The large supply and weak demand continues to add pressure to prices.  The news that a third case of African Swine Fever has been found in China could eventually provide support.  Also, the US and China are scheduled to resume conversations about trade and tariff issues.  While those talks are just the beginning and there is still a long way to go, the could eventually help the market find some stability. Barrows and gilts at the Iowa/Southern Minnesota closed $.01 lower with a range of $39 to $41 for a weighted average of $40.31; the Western Corn Belt closed $.08 lower with a range of $38.67 to $41 for a weighted average of $40.27; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.37 lower with a range of $38 to $41 for a weighted average of $40.21.

Butcher hogs at the Midwest cash markets have no comparison but opened at $27. At Illinois, slaughter sow receipts are down on the week and the year.  Prices are steady at $20 to $32 with light to moderate demand for moderate offering.  Boars under 300 pounds are $10 to $15 and boars over 300 pounds are $5 to $8.  Barrows and gilts are $1 lower at $18 to $30 with light to moderate demand for moderate offerings.

Pork cutout values closed firm – up $.41 at $67.18.  The primals were mostly higher, led by the loin, butts, and picnics.  Hams were firm.  Bellies were lower, and ribs were weak.  Estimated hog slaughter is 456,000 head – down 11,000 on the week but up 31,000 on the year.