Market News

Cattle, hog futures higher on wholesale values

At the Chicago Mercantile Exchange, cattle futures closed higher ahead of widespread direct cash business and stronger wholesale values at midday.  December live cattle closed $.55 higher at $115.15 and February live cattle closed $.50 higher at $119.10.  January feeder cattle closed $.87 higher at $147.85 and Marche feeder cattle closed $.75 higher at $144.55.

Direct cash cattle trade has been fairly quiet with just a handful of deals reported in parts of Iowa.  The distance between bids and asking prices is making it very difficult for business to develop.  Bids are at $109 to $113 live and $176 dressed with asking prices holding firm at $116 to $117 live and $178 to $180-plus dressed.  Look for significant trade volume to hold off until the end of the day Friday.

At the Hub City Livestock Auction in South Dakota, receipts were down on the week and the year.  Compared to the last sale steer calves 450 to 500 pounds and 551 to 600 pounds were mostly steady, steers 501 to 550 pounds and 601 to 700 pounds were $2 to $5 lower, yearling steers were not well tested.  Heifer calves 450 to 500 pounds and 651 to 701 pounds were $3 to $6 lower.  Demand was good for the yearlings offered and demand for calves was moderate to good.  The USDA says quality was mostly attractive with the flesh on the calves making up the price difference.  It was a moderate market with mostly order buyers.  Feeder supply included 51 percent steers and 53 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 513 to 547 pounds brought $162 to $179 and feeder steers 551 to 599 pounds brought $161.75 to $176.  Medium and Large 1 feeder heifers 506 to 545 pounds brought $142.50 to $162.25 and feeder heifers 553 to 589 pounds brought $140 to $156.50.

Boxed beef cutout values closed lower on light demand for moderate offerings.  Choice closed $.92 lower at $213.16 and Select closed $1.80 lower at $197.18.  The Choice/Select spread is $15.98.  Estimated cattle slaughter is 119,00 head – up 3,000 on the week and down 3,000 on the year.

Lean hog futures closed higher on renewed support and stronger wholesale values at midday.  Deferred contracts are very optimistic that demand will increase as China continues to struggle to contain African Swine Fever.  December lean hogs closed $.07 higher at $57.07 and February lean hogs closed $1.40 higher at $63.75.

Cash hogs closed steady with light negotiated purchase totals.  The supply of market-ready hogs is ample and allowing packers to control the prices.  There is still worry about demand certainty – especially as the trade situation remains volatile with some of the largest customers of US pork.  There is some guarded optimism about the potential that the continued spread of African Swine Fever in China will result in an increase in demand on the global market for US pork. Barrows and gilts at the Iowa/Southern Minnesota closed $.08 higher with a range of $46 to $51.50 for a weighted average of $50.84; the Western Corn Belt closed $.16 higher with a range of $46 to $51.50 for a weighted average of $50.84; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.30 higher with a range of $46 to $52.44 for a weighted average of $51.65.

Butcher hogs at the Midwest cash markets are steady at $33 and $36. At Illinois, slaughter sow receipts are up on the week and the year.  Prices are steady at $30 to $44 with moderate demand for moderate offerings.  Barrow and gilt prices are steady at $28 to $37 with moderate demand for moderate offerings.

Pork cutout values closed $.35 lower at $68.67 after being up at midday.  The picnics lost $8.49 today.  Hams and butts were weak.  Loins and ribs were steady.  Bellies were higher.  Estimated hog slaughter is 476,000 head – up 3,000 on the week and 9,000 on the year.