Market News

Supply concerns pressure hog futures

At the Chicago Mercantile Exchange, cattle futures closed steady ahead of widespread direct cash business.  The market is optimistic cash business will end the week strong.  Feeder cattle were pressured by the day’s firm move in corn.  February live cattle closed $.10 higher at $124.97 and April live cattle closed $.45 higher at $126.37.  January feeder cattle closed $.62 lower at $146.12 and March feeder cattle closed $.17 lower at $144.90.

A light direct cash cattle trade started late in the day.  A handful of deals have been reported in Nebraska at $197, $2 higher than the previous week’s weighted averages.  Heading into the end of the day bids were still at $120 to $122 live and $194 to $197 dressed with asking prices holding firm at $125 to $126 live and $200 plus, dressed.    

Boxed beef closed lower on light demand and moderate offerings.  Choice closed $1.50 lower at $212.46 and Select closed $1.50 lower at $206.27. Estimated cattle slaughter is 117,000 head – down 2,000 on the week and the year.  Saturday’s estimated kill is 32,000 head – down 60,000 on the week and up 12,000 on the year. 

At the Mitchell Livestock Auction in South Dakota, receipts are up on the week and the year.  Compared to last week feeder steers and heifers are $2 to $5 lower with some instances of steady.  Demand was moderate for the large offering of steers and heifers.  There were several large strings of very high-quality feeder cattle, many full loads and multiple load lots.  Flesh condition was light to moderate plus.   While the market was active – not as much as the previous week.  Feeder supply included 54 percent steers and 86 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 700 to 748 pounds brought $144.25 to $150.25 and feeder heifers 757 to 793 pounds brought $132.50 to $134.85. 

At the Missouri Hay Market, hay interest saw a slight uptick this week with increased inquiries, but little to no hay to sell.  The supply of hay is light to moderate and prices are steady.  Demand is moderate to good.  Supreme quality alfalfa brought $180 to $225, small square brought $7 to $10 per bale.  Premium quality alfalfa brought $150 to $200, good quality alfalfa brought $120 to $160 and small square brought $5 to $7 per bale.  Good quality mixed grass hay brought $100 to $150 and small square brought $5 to $8 per bale.  Good quality bromegrass brought $120 to $150 and fair to good quality brought $60 to $100.

Lean hog futures closed lower, pressured by the day’s lower cash trade and supply and demand concerns.  Contracts are at a premium to cash. February lean hogs closed $1.42 lower at $62.65 and April lean hogs closed $.50 lower at $67.35.

Cash hogs closed weak with light to moderate negotiated purchase totals.  Buyers finished the week with lower bids.  The supply of ready barrows and gilts is ample, and demand worries become more troublesome as the market tries to find some stability. Barrows and gilts at the Iowa/Southern Minnesota closed $.27 lower with a range of $49 to $53 for a weighted average of $50.73; the Western Corn Belt closed $.65 lower with a range of $47 to $53 for a weighted average of $50.59; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.27 lower with a range of $47 to $53 for a weighted average of $50.88. 

The USDA says early weaned pigs and all feeder pigs were $1.00 per head lower.  Demand was light to moderate for moderate offerings.  Receipts included 44 percent formulated prices.  Total composite formula rage was $37 to $66 with an average of $47.23.  Total composite cash range was $50 to $71 with a weighted average of $63.77.  The average for all early weaned pigs was $55.78 and the average for all feeder pigs was $71.59.

Butcher hogs at the Midwest cash markets are steady at $30.  At Illinois, slaughter sow receipts are down on the week and the year.  Prices are steady to $2 higher at $18 to $32 with moderate demand for moderate offerings.  Barrow and gilt prices are steady to $1 lower at $30 to $36 with moderate demand for moderate offerings. 

Pork values closed firm – up $.50 at $70.96.  Bellies, picnics, and hams were all higher.  Ribs were steady.  Loins and butts were lower. 

Estimated hog slaughter is 475,000 head – down 2,000 on the week and up 23,000 on the year.  Saturday’s estimated kill is 190,000 head – down 237,000 on the week and up 11,000 on the year. 

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