Market News

Hog futures pressured by wholesale, cash trade

At the Chicago Mercantile Exchange, live cattle futures closed mixed following last week’s less than stellar cash trade and ahead of widespread direct cash business.  Feeder cattle managed to find some support in the days weaker corn trade.  February live cattle closed $.32 lower at $121.20 and April live cattle closed $.02 lower at $123.60.  January feeder cattle closed $.65 higher at $145.02 and March feeder cattle closed $.87 higher at $142.75.

Direct cash cattle trade is quiet with the focus on new showlists.  Those look to be mixed with offerings lower in Texas and Nebraska, but higher in Kansas and Colorado.  Significant trade volume will likely be delayed until the end of the week.

At the Joplin Regional Stockyards, in Missouri, receipts were down on the week and up slightly on the year.  Compared to last week, steer calves under 500 pounds were steady to $5 higher, steers 500 to 700 pounds and heifers under 700 pounds were steady, heavier weights were weak to $3 lower.  The USDA says demand was moderate to good and supply was moderate.  Feeder supply included 55 percent steers and 39 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 595 pounds brought $136 to $163 and feeder steers 608 to 644 pounds brought $140 to $145.  Medium and large 1 feeder heifers 555 to 599 pounds brought $128 to $145 pounds and feeder heifers 600 to 640 pounds brought $126 to $145.

Boxed beef closed firm to higher on moderate to fairly good demand and moderate offerings.  Choice closed $1.13 higher at $215.42 and Select closed $.44 higher at $200.94.  The Choice/Select spread closed at $14.48.  Estimated cattle slaughter is 119,000 head – even on the week and up 2,000 on the year.

Lean hog futures closed mixed – nearby contracts closed lower, pressured by weakening wholesale values and the lower cash trade.  However, deferred contracts are still hopeful demand will increase as more pork makes its way into the supply chain.  February lean hogs closed $1.05 lower at $66.82 and April lean hogs closed $.25 lower at $72.07.

Cash hogs closed lower with light negotiated purchase totals. The week started with another big day of slaughter runs.  That’s expected to continue as we hit our seasonal peak through the end of the year.  While that meets packers’ needs, it also keeps a lid on any positive price movement.  Guarded optimism throughout the industry continues – hoping the trade issues will resolve helping to shore up demand.  However, demand remains uncertain, tariffs haven’t been dropped, and there is an abundance of pork coming to market.   Barrows and gilts at the Iowa/Southern Minnesota closed $.84 lower with a range of $43 to $47 for a weighted average of $46.25; the Western Corn Belt closed $.70 lower with a range of $43 to $47 for a weighted average of $46.34; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.49 lower with a range of $43 to $48.56 for a weighted average of $47.35.

Butcher hogs at the Midwest cash markets are $36 in Dorchester, Wisconsin. At Illinois, slaughter sow receipts are down on the week and up on the year.  Prices are steady at $21 to $40 with moderate demand for moderate offerings.  Barrow and gilt prices are steady at $25 to $34 with moderate demand for moderate offerings.

Pork values closed lower – down $.98 at $72.65.  The hams, ribs, and loins were all lower.  Picnics, butts, and bellies were higher.  Estimated hog slaughter is 479,000 head – up 12,000 on the week and up 17,000 on the year.