Market News

Hog futures were mostly higher ahead of Thursday’s report

At the Chicago Mercantile Exchange, live cattle were up, and feeders were mostly higher watching direct business unfold.  April live cattle closed $1.40 higher at $185 and June lives closed $1.57 higher at $180.25.  April feeder cattle closed $.25 higher at $247.12 and May feeders closed $.42 higher at $248.70. 

There was a light to moderate direct cash cattle trade that developed Thursday afternoon.  Deals in the South were marked at $186 live, that is $1 higher than Wednesday’s business but $2 below the previous week’s weighted averages.  Dressed deals were marked at $299 to $300, $2 to $3 lower than the prior week’s weighted average basis.

At the Mitchell Livestock Auction in South Dakota, feeder steers 900 to 1000 pounds were steady to $5 higher.  Feeder heifers 800 to 900 pounds were steady to $1 higher.  There was a much higher undertone noted on light heifers.  The USDA says the offering featured many load lots and one consigner of 750 feeders.  Demand was very good.  Receipts were down on the week and the year.  Feeder supply included 29% steers and 88% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 709 to 740 pounds brought $270 to $270.10 and feeder steers 965 to 969 pounds brought $226.75 to $227.75.  Medium and Large 1 feeder heifers 614 to 696 pounds brought $281 to $296 and feeder heifers 758 to 797 pounds brought $239.75 to $253.60. 

Boxed beef closed mixed with light to moderate demand for solid offerings.  Choice was $.22 lower at $308.36 and Select closed $2.74 higher at $301.17.  The Choice/Select spread is $7.19. Estimated cattle slaughter was 116,000 head – down 1,000 on the week and down more than 9,000 on the year.

Lean hog futures closed mostly higher ahead of the USDA’s Quarterly Hogs and Pigs report.  The near-term numbers are neutral to bearish with the potential for some long-term support. April lean hogs closed $.52 higher at $86.62 and May lean hogs closed $.10 higher at $92.50.

Cash hogs closed higher with a moderate negotiated run.  Processors got a little more aggressive in their procurement efforts Thursday afternoon and bid up to move needed numbers.  Global demand continues to be a bright spot for the hog market and this past week was no exception as net Export Sales hit a marketing-year high, and was up 64% from the previous week and up 74% from the prior 4-week average.  The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $2.21 higher with a base range of $74.50 to $84 with a weighted average of $81.47; the Iowa/Minnesota closed $1.41 higher with a weighted average of $80.27; the Western Corn Belt closed $1.75 higher with a weighted average of $80.96; no comparison at the Eastern Corn Belt but a weighted average of $83.22. 

At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $50 to $62.  Barrows and gilts were steady with moderate demand for moderate offerings at $43 to $53.  Boars ranged from $15 to $25 and $8 to $15. 

Pork values closed higher – up $.46 at $94.52.  Butts, loins, and hams were higher.  Loins, bellies, and ribs were lower to sharply lower. Estimated hog slaughter was 489,000 head – down 1,000 on the week and up about 11,000 on the year.