Market News

Hog futures show gains on higher midday pork values

The cash cattle trade was at a standstill on Wednesday afternoon with just a few bids reported in parts of the North at 240.00. A few cattle sold in Iowa at 150.00 on a live basis. Asking prices remain firm at 149.00 to 150.00 in the South, and 242.00 to 243.00 in the North. Significant trade volume could develop on Thursday if packers and feedlot managers decide to complete business before the long holiday weekend. The kill totaled 115,000 head, 2,000 below last week, and 6,000 smaller than last year.

Boxed beef cutout values were higher on moderate to fairly good demand and moderate offerings. Choice beef gained .89 at 223.75, select 214.47 up 1.33.

Live cattle contracts on the Chicago Mercantile Exchange settled 41 points higher to 10 lower with only 2015 contracts in the red. A narrow price range defined the live cattle complex as traders seemed uninterested in stepping into the market at this point in the week. Traders looked for increased support from outside markets as well as potential beef value support. There was some late short covering in the live pit.  April settled .47 higher at 145.75, and June was up .20 at 135.60.

Feeder cattle ended the session 2 to 40 points higher but were unable to show much life through much of the session. DTN’s Rick Kment says, overall traders seemed to be overlooking the cattle market in favor of hanging out on the sidelines as mere observers. April settled .02 higher at 179.25 and May was up .12 at 179.90.

Feeder cattle receipts at the St. Joseph, Missouri Stockyards on Wednesday totaled 1850 head. Compared to last week, steer and heifer calves weighing less than 550 pounds opened steady. Heavier weight calves started out 5.00 to 10.00 lower. Weights over 700 pounds were not tested early. Feeder steers, medium and large 1weighing 550 to 600 pounds traded from 218.00 to 223.25. 550 to 6 weight heifers brought 175.25 to 184.25.

Lean hogs settled 20 to 167 points higher with only December lower. Higher pork values at midday sparked additional buyer support in all nearby contracts. June futures went from narrow losses to triple digit gains. The focus on higher pork values may only have limited interest, given the short trading week. But for now the fire in the hog market has been rekindled. May settled 1.37 higher at 122.87, and June was up 1.25 at 123.77.

There was slow hog market activity with light demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 2.64 lower at 114.99 weighted average on a carcass basis, the West was down 2.67 at 114.67. Eastern markets were not reported due to confidentiality. Missouri direct base carcass meat price closed steady to 3.00 lower from 111.00 to 113.00. Barrows and gilts in the Midwest closed steady to 2.00 lower from 81.00 to 96.00 live.

Pork values were sharply higher in the morning report but ended the day .57 lower at 121.16 FOB plant. Bellies were responsible for the losses.

Seasonally, market hog numbers typically tighten from spring through midsummer. While the exact level of PED death loss through the winter will impact the pace of tightening, market hog supplies will tighten regardless of PED.

The hog kill was estimated at 412,000 head, 7,000 more than last week, but 9,000 less than last year.