Market News

Demand concerns pressure hog futures

At the Chicago Mercantile Exchange, cattle futures closed lower ahead of widespread direct cash business.  The sluggish cash cattle trade this week has futures contracts drifting lower.  December live cattle closed $.35 lower at $117.95 and February live cattle closed $.57 lower at $121.80.  January feeder cattle closed $1.27 lower at $144.20 and March feeder cattle closed $1.10 lower at $141.95.

Direct cash cattle trade has been quiet.  Bids are still sitting at $112 to $114 live and $183 dressed.  Asking prices are holding firm at $120 live and $190 dressed.  The distance between the two could push significant trade volume to late in the day Friday.

At the Ozarks Regional Stockyards in Missouri, receipts were almost steady on the week and up on the year.  Compared to last week, steer calves were $6 to $12 lower with spots of $15 lower.  Heifer calves were $3 to $6 lower with spots of $10 lower.  Yearlings were not tested, however, undertones were lower.  The USDA says demand was light on a heavy supply presented in small packages.  Feeder supply was 47 steers and 29 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 505 to 546 pounds brought $150 to $165 and feeder steers 603 to 646 pounds brought $140 to $152.  Feeder heifers 402 to 448 pounds brought $141 to $151 and feeder heifers 502 to 549 pounds brought $130 to $140.

Boxed beef closed mixed – weak on Choice and higher on Select on light to moderate demand and light offerings.  Choice closed $.59 lower at $212.67 and Select closed $1.36 higher at $198.22.  The Choice/Select spread is $14.45.

Estimated cattle slaughter is 121,000 head – up 1,000 on the week and the year.

Lean hog futures closed lower on pressure from outside markets and news that China could be back peddling on its recent trade talks.  That demand uncertainty adds more pressure to prices.  December lean hogs closed $1.32 lower at $54.52, February lean hogs closed $.85 lower at $66.90, and April lean hogs closed $.85 lower at $71.27.

Cash hogs closed mixed with light negotiated purchase totals.  Large slaughter runs continue and that’s helping packers to set prices.  There is continued hope that the demand picture will become more solid, but there is still a long way to go before regulatory hurdles are cleared and tariffs are dropped.

Barrows and gilts at the Iowa/Southern Minnesota closed $.48 higher with a range of $44 to $48.25 for a weighted average of $47.33; the Western Corn Belt closed $.21 higher with a range of $44 to $48.25 for a weighted average of $47.05; the Eastern Corn Belt closed $.99 lower with a range of $46 to $48.52 for a weighted average of $47.86; and the National Daily Direct closed $.03 lower with a range of $44 to $48.52 for a weighted average of $47.52.

Butcher hogs at the Midwest cash markets are steady at $33 and $36.

At Illinois, slaughter sow receipts are down on the week and the year.  Prices are $1 lower at $23 to $40 with moderate demand for moderate offerings.  Barrow and gilt prices are steady at $28 to $35 with moderate demand for moderate offerings.

Pork values closed firm – up $.42 at $72.12.  Hams and bellies were higher.  Butts, ribs, and picnics were lower.  Loins were weak.

Estimated hog slaughter is 471,000 head – down 3,000 on the week and up 6,000 on the year.