Market News

ASF concerns launch hog futures higher

At the Chicago Mercantile Exchange, live cattle futures closed mixed on lack of support from wholesale values and cash trade.  Feeder cattle futures closed lower on technical selling while waiting on widespread direct cash business.  December live cattle closed $.20 higher at $115.35 and February live cattle closed $.62 higher at $119.72.  January feeder cattle closed $1.32 lower at $146.52 and March feeder cattle closed $.57 lower at $143.97.

Friday afternoon rounded out with a light direct cash cattle trade.  Live deals were at $114, which is generally steady with the previous week and dressed deals in Nebraska were at $178, about $2 lower than the previous week’s weighted average basis in Nebraska.

At the Ogallala Livestock Auction in Nebraska, receipts were up on the week.  Compared to the previous sale steers were steady to $2 lower and heifers were steady to $4 lower.  The USDA says demand was good to moderate and calves with pre-conditioned shots were in high demand.  Feeder supply included 62 percent steers and 21 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 506 to 549 pounds brought $166 to $181 and feeder steers 550 to 599 pounds brought $161 to $170.  Medium and Large 1 feeder heifers 502 to 542 pounds brought $144 to $155 feeder heifers 558 to 592 pounds brought $138.50 to $151.

At the Missouri Hay Market hay supply is light to moderate and prices are steady.  Demand is light to moderate.  While the snow has been short-lived, the winter-type weather conditions have farmers out feeding cattle earlier than expected.  Supreme quality alfalfa bales brought $180 to $225, small squares brought $7 to $9 per bale.  Premium quality alfalfa brought $150 to $200.  Good quality brought $120 to $160 and small squares brought $5 to $7 per bale.  Fair quality alfalfa brought $100 to $120.  Good quality mixed grass hay brought $100 to $150 and small squares brought $5 to $7 per bale.  Fair to good quality mixed grass hay brought $5 to $7 per bale.  Fair to good quality mixed grass hay brought $75 to $125.  Good quality bromegrass brought $120 to $150 and fair to good quality bromegrass brought $60 to $100.

Boxed beef cutout values closed weak to steady on light to moderate demand and offerings.  Choice closed $.63 lower at $212.91 and Select closed $.01 lower at $197.57.  The Choice/Select spread is $15.34.  Estimated cattle slaughter is 120,000 head – up 6,000 on the week and 3,000 on the year.  Saturday’s estimated kill is 54,000 head – up 1,000 on the week and 12,000 on the year.

Lean hog futures closed limit higher following the finding of African Swine Fever in China’s largest pork producing province.  The potential for a global disruption to the pork supply and potential increase in demand for US pork pushed contracts higher.  December lean hogs closed $3.00 higher at $60.07 and February lean hogs closed $3.00 higher at $66.75.

Cash hogs closed firm with light negotiated purchase totals.  Pork production is at its seasonal high and that’s putting packers in control of prices.  Large supplies combined with demand concerns continue to pressure the market.  But there is some cautious optimism as African Swine Fever continues to spread throughout China and the rumor that talks between China and the US could be on a path to a trade agreement.  Barrows and gilts at the Iowa/Southern Minnesota closed $.32 higher with a range of $47 to $51.50 for a weighted average of $51.24; the Western Corn Belt closed $.26 higher with a range of $47 to $51.50 for a weighted average of $51.17; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.02 higher with a range of $46 to $52.44 for a weighted average of $51.60.

The USDA says early-weaned pigs were steady.  All feeder pigs were $4.00 per head higher. Demand was moderate for moderate offerings.  Receipts included 43 percent formulated prices.  Total composite formula rage was $35.74 to $45.67 with an average of $40.65.  Total composite cash range was $25.00 to $52 with a weighted average of $42.62.  The average for all early weaned pigs was $41.71 and the average for all feeder pigs was $47.32.

Butcher hogs at the Midwest cash markets are steady in Dorchester, Wisconsin at $36.  Zumbrota, Minnesota and Garnavillo, Iowa are closed today.  At Illinois, slaughter sow receipts are down 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 weak – down $.49 at $68.18.  The butts, loins, bellies and hams were all lower.  Ribs were firm.  Picnics closed higher.  Estimated hog slaughter is 472,000 head – down 1,000 on the week and up 16,000 on the year.  Saturday’s estimated kill is 281,000 – up 63,000 on the week and 127,000 on the year.