Market News

Hogs futures supported by demand optimism

At the Chicago Mercantile Exchange, live cattle were mostly lower, and feeders were higher ahead of the week’s direct business.  June live cattle closed $.90 lower at $177.15 and August live cattle closed $.90 lower at $175.50.  May feeder cattle closed $.87 higher at $246.05 and August feeders closed $.92 higher at $259.40. 

Direct cash cattle trade activity was quiet again Tuesday.  Bids and asking prices weren’t established.  Showlists are mixed this week, higher in Texas, but lower in Kansas and Nebraska/Colorado.  Significant trade volume will likely be delayed until the back half of the week.

At the Joplin Regional Stockyards in Missouri, feeder steers were $3 to $7 higher.  Feeder heifers were $6 to $12 higher.  The USDA says supply was moderate with very good demand.  Receipts were up on the week and down on the year.  Feeder supply included 51% steers and 59% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 602 to 649 pounds brought $277 to $312 and feeder steers 750 to 787 pounds brought $237 to $265.  Medium and Large 1 feeder heifers 600 to 647 pounds brought $240 to $269 and feeder heifers 715 to 743 pounds brought $222 to $242.50. 

Boxed beef ended the day higher on good demand for solid offerings.  Choice was $1.47 higher at $297.40 and Select was $.89 higher at $292.76.  The Choice/Select spread is $4.64. Estimated cattle slaughter was 125,000 head – down 1,000 on the week and down about 2,000 on the year.

Lean hog futures ended the day higher, supported by demand optimism. May lean hogs closed $1.87 higher at $98.57 and June lean hogs closed $2.45 higher at $107.95. 

Cash hogs closed higher with a moderate negotiated run.  Packers have been aggressive in their procurement efforts this week and have been bidding up to maintain a higher slaughter pace.  Demand for U.S. pork on the global market has been strong and domestic demand has continued to push higher as summer grilling season is just around the corner.  The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $1.54 higher with a base range of $84 to $94 and a weighted average of $91.85; the Iowa/Minnesota closed $.71 higher with a weighted average of $91.62; the Western Corn Belt closed $.83 higher with a weighted average of $91.74; the Eastern Corn Belt had no comparison but weighted average of $92.18.

Butcher hog prices at the Midwest cash markets are steady at $52.At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boars ranged from $18 to $28 and $8 to $15.

Pork values closed sharply lower – down $4.84 at $96.86.  Bellies dropped nearly $24 on Tuesday.  Ribs were sharply lower, hams, picnics and loins were lower.  Butts were higher. Estimated hog slaughter was 486,000 head – even on the week and down about 18,000 on the year.