Market News

Hog futures rebound after recent losses

At the Chicago Mercantile Exchange, live cattle futures ended the day lower in limited trade volume on weaker wholesale values and the lack of direction in the cash trade.  Feeder cattle futures were mostly lower on the same factors with added pressure from the day’s higher move in corn.  June live cattle closed $.25 lower at $109.50 and August live cattle closed $.20 lower at $106.72.   May feeder cattle closed $.95 higher at $136 and August feeder cattle closed $.60 at $142.50. 

Direct cash cattle trade was at a near standstill. There were a few deals reported at $186 to $188 dressed – but not near enough to establish a trend.  Bids have surfaced in Kansas at $116 live with asking prices in Texas at $120 live.  Wednesday’s Fed Cattle Exchange has an offering of 376 head.  Significant trade volume is expected to develop over the balance of the week. 

At the Callaway Livestock Center – receipts are down on the week and the year.  Compared to last week, feeder steers 450 to 700 pounds and heifers 500 to 650 pounds were $3 to $7 lower.  Yearling steers over 700 pounds and heifers over 650 pounds were all trading with a lower undertone.  Feeder heifers 450 to 500 pounds were steady to $3 lower.  The USDA says demand was light to moderate for the light offering of feeder cattle and quality was not as attractive as last week.  Feeder supply included 67 percent steers and 50 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 652 to 693 pounds brought $145.25 to $149.25 and feeder steers 900 to 911 pounds brought $127 to $127.25.  Medium and Large 1 feeder heifers 558 to 583 pounds brought $132 to $139 and feeder heifer s765 pounds brought $126.50. 

Boxed beef closed mixed – lower on Choice and steady on Select on light to moderate demand and moderate offerings.  Choice closed $1.46 lower at $220.12 and Select closed $.08 higher at $208.97.  The Choice/Select spread is $11.15.  Estimated cattle slaughter is 121,000 head – even on the week and up 1,000 on the year. 

Lean hog futures ended the day higher as contracts were oversold and due for a bounce.  However, there is still a weak tone in the market as traders remained concerned about the lack of progress on a trade deal with China.  June lean hogs closed $2.45 higher at $89.12 and July lean hogs closed $2.30 higher at $90.05. 

Cash hogs ended the day mixed with large negotiated purchase totals.  The supply of market-ready hogs is ample and slaughter runs continue well above year-ago levels.  Long-term demand uncertainty continues to plague the market and create concern.  However, China’s eventual need for more pork as it continues to battle African Swine Fever is helping to keep pork prices supported.  Trade talks aren’t making any progress and the tensions are adding more uncertainty and volatility to the market.  Barrows and gilts at the Iowa/Southern Minnesota closed $.40 lower with a range of $78.50 to $84 for a weighted average of $82.50; the Western Corn Belt closed $.15 lower with a range of $72 to $84 for a weighted average of $82.43; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.14 higher with a range of $72 to $84 for a weighted average of $82.02. 

Butcher hog prices at the Midwest cash markets are $1 lower at $59.  At Illinois, slaughter sow prices are weak at $50 to $65 with good demand for moderate offerings.  Receipts are down on the week and the year.  Barrow and gilt prices were steady at $51 to $57 with moderate demand for moderate offerings. 

Pork values closed firm – up $.40 at $88.64.  Ham and butts were higher.  Loins and bellies were weak.  Picnics and ribs were lower.  Estimated hog slaughter is 460,000 head – down 12,000 on the week and even on the year.