Market News

Hogs close lower on supply concerns

On the Chicago Mercantile Exchange cattle closed mostly lower in low trade volume.  Cattle were pressured by the lower boxed beef trade at the midday.  August live cattle closed down $.75 at $106.37 and October live cattle closed down $.32 at $105.90.  August feeder cattle was the only contract to close in the black – it ended the day up $.02 $140.50 and September closed down $.70 at $140.02.

Cash trade was at a virtual standstill Friday following yesterday’s light to moderate activity.  There might have been some clean-up trade but we won’t see those results until Monday.

Boxed beef cutouts closed lower on light to moderate demand and heavy offerings.  Choice was down $1.34 at $194.29 and Select closed $1.70 lower at $192.50.

Cattle slaughter totaled 115,000 head, 1,000 more than last week and 2,000 above a year ago.  Saturday’s kill is estimated at 52,000 bringing the weekly total to 634,000 which is 32,000 more than the previous year.

At the Herreid Livestock Market in South Dakota receipts totaled 4,766 – more than double last week’s total.  The USDA says the market was active with good to very good demand for Friday’s offering.  Steers 800 to 950 pounds were $2 to $4 lower and steers 1001 to 1050 pounds were $2 higher.  There was a feature consignment consisting of 2,800 steers off grass from one operation.  Grass cattle were mostly light to moderate flesh and feedlot cattle were mostly moderate plus flesh.  Steers made up 84 percent of the supply and the entire offering was over 600 pounds.  Medium and Large 1 steers 900 to 950 pounds were $143.50 to $147.30 and Medium and Large 1’s 950 to 1000 pounds were $139.35 to $143.00.  Medium and Large 1 heifers 960 to 1000 pounds were $123.00 to $129.75.

The USDA says hay prices in South Dakota were mostly steady on the week.  Demand was mostly moderate as recent rains across much of the eastern half of the state helped to alleviate some of the drought conditions.  Interest remains moderate to good, especially for lower quality cow hay.  Supreme large squares of alfalfa hay brought $200.00, premium large squares $150.00 to $165.00.  Good large rounds brought $120.00.  Premium large square Alfalfa/Grass Mix brought $150.00.  Good to Premium large rounds brought $120.00.  Alfalfa pellets 17 percent protein brought $165.00.

At the CME lean hogs closed mostly lower as the trade remained focused on the lack of support from the cash market.  The market is still concerned about the amount of pork entering the trade in the last quarter of this year.  October lean hogs closed down $.80 at $66.12 and December lean hogs closed down $.47 at $61.32.

Cash hogs closed sharply lower as the trade continues to watch the seasonal increase of market ready numbers which would add more pork to the market and it raises concerns about how much more pork the trade could handle.  The Iowa/Southern Minnesota closed $2.40 lower with range of $69 to $75 and an average of $73.11, the Western Corn Belt ended the day $2.24 lower with a range of $69 to $74 and an average of $73.28 and barrows and gilts at the National Daily Direct closed $2.06 lower with a range of $69 to $75 and an average of $73.34.

Butcher hogs at the Midwest cash markets ended the day steady at $48 to $53.

At the Interior Missouri Direct barrows and gilts are steady at $69 to $71.  The USDA says both supply and demand are light to moderate.  Sows are steady at $58 to $70.  For the week barrows and gilts are $1 to $2 lower and sows are $2 to $3 lower.