Market News

Demand uncertainties pressure hog futures

At the Chicago Mercantile Exchange, live cattle futures closed lower ahead of Friday’s Cattle on Feed report and wide-spread direct cash business.  Feeder cattle were mixed, but found support in the day’s lower move in corn and higher wholesale values.  December live cattle closed $.20 lower at $117.17 and February live cattle closed $.10 lower at $121.37.  November feeder cattle closed $1.07 higher at $154.42 and January feeder cattle closed $.35 higher at $149.42.

A moderate direct cash cattle trade has developed again today in parts on Nebraska.  Deals have been at $111 live, fully steady with yesterday and last week.  Packer inquiry continues to improve, but bids and asking prices are still a few dollars apart. Asking prices are firm around $113 to $114 live and $176-plus dressed.  Bids are at $111 live and $174 dressed.

At the Mobridge Livestock Exchange in South Dakota, receipts are up from two weeks ago and on the year.  Compared two weeks ago, steer calves 500 to 650 were unevenly steady and heifers 450 to 600 pounds were steady to $2 lower.  Demand varied, depending on quality.  There was good demand for preconditioned calves and light to moderate demand for other calves.  Feeder supply was 63 percent steers and 26 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 545 pounds brought $173.50 to $191 and feeder steers 550 to 595 pounds brought $164.75 to $180.75.  Medium and Large 1 feeder heifers 450 to 490 pounds brought $177 to $203 and feeder heifers 500 to 540 pounds brought $147 to $163.  The wide price spread was a reflection of the importance producers are placing on a full vaccination program.  The varying weather conditions has buyers placing an emphasis on picking up calves that have the least chance of getting sick.

Boxed beef cutout values closed sharply higher on moderate to good demand for moderate offerings.   Choice up $2.26 at $206.82 and Select up $1.16 at $192.35.  The Choice/Select spread closed at $14.47.  Estimated cattle slaughter is 115,000 head, down 2,000 on the week and 4,000 on the year.

Lean hog futures closed sharply lower pressured by long-term supply and demand concerns, the lack of support from the cash trade, and the recent declines in wholesale values.  December lean hogs closed $2.40 lower at $52.30 and February lean hogs closed $2.35 lower at $60.22.

Cash hogs closed steady to weak with light negotiated purchase totals.  Supply and demand struggles continue as more meat enters a market that is looking to find an inkling of positive demand news.  Slaughter runs have been massive and hog weights are climbing.  That puts even more pressure on prices.  Barrows and gilts at the Iowa/Southern Minnesota closed $.39 lower with a range of $53 to $59.50 for a weighted average of $58.76; the Western Corn Belt closed $.35 lower with a range of $53 to $59.50 for a weighted average of $58.73; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.08 higher with a range of $53 to $59.50 for a weighted average of $59.16.

Butcher hogs at the Midwest cash markets are steady at Dorchester, Wisconsin and Garnavillo, Iowa at $42 and $2 lower at Zumbrota, Minnesota at $38.  At Illinois, slaughter sow receipts are up on the week and even on the year.  Prices are $1 higher at $25 to $38 with moderate demand for moderate offerings.  Barrow and gilt prices are weaker at $32 to $42 with moderate demand for moderate offerings.

Pork cutout values closed weak – down $.40 at $78.12.  Ribs and picnics were sharply lower, loins were weak, butts were steady, and hams and bellies were higher. Estimated hog slaughter is 477,000 head – up 4,000 on the week and 14,000 on the year.