Market News

Hog futures higher on cash strength

At the Chicago Mercantile Exchange, cattle futures ended the day lower in limited trade volume on profit taking and the lack of direction from the cash trade.  There was also some position squaring ahead of Friday’s Cattle on Feed report.  October live cattle closed $.20 lower at $113.22 and December live cattle closed $.12 lower at $117.97.  September feeder cattle closed $1.50 lower at $155.82 and October contracts closed $1.15 lower at $158.02.

Direct cash cattle trade is quiet with just a few asking prices noted at $114 live.  Bids have yet to be established.  The showlists higher in most areas, but lower in Colorado.  Wednesday’s Fed Cattle Exchange has an offering of 528 head.  Significant trade volume isn’t expected to develop until the latter half of the week.

At the Callaway Livestock Center, receipts are down on the week and the year.  Compared to last week lightweight steer calves were $3 to $6 higher with instances of $10 higher, steers 500 to 750-pound steers traded steady to firm with some $3 higher.  Feeder heifers under 450 pounds sold with a higher undertone with heifers 600 to 700 pounds trading $3 to $6 higher.  The USDA says demand was moderate to good with a nice offering of yearling heifers.  Feeder supply included 37 percent steers and 60 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 550 pounds brought $180 to $188 and feeder steers 600 to 650 pounds brought $167 to $175.75.  Medium and Large 1 feeder heifers 500 to 600 pounds brought $149.50 to $157 and feeder heifers 600 to 650 pounds brought $151.85 to $159.

Boxed beef cutout values closed lower on light to moderate demand and heavy offerings.  Choice down $.75 at $205.29 and Select down $1.91 at $195.47.  The Choice/Select spread closed at $9.82.  Estimated cattle slaughter is 120,000 head – up 1,000 on the week and 2,000 on the year.

Lean hog futures closed sharply higher on strength in wholesale values and strength in cash business.   USDA’s monthly livestock slaughter numbers come out on Thursday.  October lean hogs closed $2.72 higher at $59.17 and December lean hogs closed $2.60 higher at $57.97.

Cash hogs closed sharply higher with solid negotiated purchase numbers.  Processing plants in North Carolina have reduced their production while waiting for the flood waters to recede following Hurricane Florence.  While the reduced slaughter capacity could be supportive now, down the line it will likely increase hog weights and add more meat to an already saturated market.  The industry continues to monitor the African Swine Fever situation in China. Barrows and gilts at the Iowa/Southern Minnesota closed $1.96 higher with a range of $44 to $56.50 for a weighted average of $52.43; the Western Corn Belt closed $2.06 higher with a range of $44 to $56.50 for a weighted average of $53.75; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $2.26 higher with a range of $44 to $56.50 for a weighted average of $52.92

Butcher hogs at the Midwest cash markets are steady at $32.  At Illinois, slaughter sow receipts are down on the week and the year.  Prices are $1 lower at $16 to $28 with light to moderate demand for moderate offerings.  Barrows and gilts are $1 lower at $26 to $35 with moderate demand for moderate offerings.

Pork cutout values closed higher – up $1.55 at $77.57. The primals closed mostly higher, led by the bellies, which closed more than $5 higher.  Picnics closed weak.  Estimated hog slaughter is 422,000 head – down 47,000 on the week and 32,000 on the year.