Market News

ASF concerns continue to drive hog futures

At the Chicago Mercantile Exchange, live cattle futures ended the day higher, contracts were oversold and there was additional support from wholesale values.  Feeder cattle closed sharply higher drawing support from the days lower move in corn.  December live cattle closed $.45 higher at $115.37 and February live cattle closed $.75 higher at $118.75.  January feeder cattle closed $3.25 higher at $146.97 and March feeder cattle closed $2.40 higher at $144.12.

Direct cash cattle trade has been quiet, but a few starter bids have surfaced in parts of Nebraska at $174 to $176.  Otherwise, the rest of cattle country has been quiet.  Asking prices are should start to develop more on Wednesday.  The Fed Cattle Exchange has an offering of 620 head.  Significant trade volume isn’t expected to pick up until later in the week.

At the Russell Livestock Auction in Iowa, receipts were down from the most recent auction and down on the year.  Compared to two weeks ago feeder steers were mostly $10 to $20 lower and feeder heifers under 500 pounds were mostly $14 to $25 lower and feeder heifers over 500 pounds were mostly $8 to $12 lower.  The USDA says demand is moderate today.  Feeder supply was 62 percent seers and 44 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 506 to 549 pounds brought $153 to $168 and feeder steers 551 to 599 pounds brought $141 to $156.50.  Medium and Large 1 feeder heifers 500 to 546 pounds brought $132 to $150 and feeder heifers 554 to 598 pounds brought $131 to $141.

Boxed beef cutout values closed lower on light to moderate demand and moderate offerings.  Choice down $1.47 at $214.08 and Select closed $1.41 lower at $198.98.  The Choice/Select Spread closed at $15.10.  Estimated cattle slaughter is 119,000 head – even on the week and the year.

Lean hog futures closed mostly higher on support from stronger wholesale values at midday.  The uncertainty surrounding the impact of African Swine Fever in China has the market optimistic.  December lean hogs closed $.75 higher a t$57.30 and February lean hogs closed $.65 higher at $62.17.

Cash hogs closed lower with light negotiated purchase totals.  Large runs of ready barrows and gilts are giving packers the upper hand when it comes to setting prices. The industry continues to watch the African Swine Fever situation in China.  There is some conflicting information about the potential for ASF to be found in Chinese pork feed supplies – which could be contributing to the spread of the disease throughout the country.  The cash market continues to proceed with cautious optimism that a disruption to the global pork supply would be largely supportive to US pork prices.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.15 lower with a range of $47 to $52 for a weighted average of $50.13; the Western Corn Belt closed $1.08 lower with a range of $47 to $52 for a weighted average of $50.15; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.33 lower with a range of $47 to $52.44 for a weighted average of $51.61.Butcher hogs at the Midwest cash markets are steady at $34 and $36.

At Illinois, slaughter sow receipts are down on the week and up on the year.  Prices are steady at $30 to $44 with moderate demand for moderate offerings.  Barrow and gilt prices are $1 lower at $28 to $38 with moderate demand for moderate offerings. Pork cutout values closed weak, down $.14 at $70.69.  The Bellies, ribs, hams, and butts all closed lower.  Loins and picnics closed higher.

Estimated hog slaughter is 478,000 head – up 1,000 on the week and 10,000 on the year.