Market News

Hog futures pressured by demand uncertainty

At the Chicago Mercantile Exchange, cattle futures drifted higher in limited trade activity ahead of widespread direct cash business.  There was some positive influence from the price expectations for this year.  February live cattle closed $.95 higher at $122.15 and April live cattle closed $.92 higher at $124.52.  January feeder cattle closed $2.27 higher at $147.30 and March feeder cattle closed $2.15 at $144.90.

Direct cash cattle trade is quiet with bids and asking prices still not established.  Some early bids have surfaced around $122 live in parts of Texas, but nothing that would establish a trend.  Wednesday’s Fed Cattle Exchange has an offering of just 156 head.  Look for significant trade volume to develop later in the week.

At the Callaway Livestock Center in Missouri, receipts are down on the week and the year.  Compared to last week, steer calves under 550 pounds sold with a firm to higher undertone compared to last week’s light test, calves 550 to 600 pounds are steady, with 600 to 700 pounds unevenly steady on comparable sales, 700 to 750 pounds were sold firm to $3 higher, over 750 pounds were not well tested.  Feeder heifers 400 to 600 pounds were steady to firm with weights over 600 pounds lightly tested.  The USDA says demand was moderate on a moderate supply for calves mostly weighing 450 to 700 pounds.  Feeder supply consisted of 48 percent steers and 41 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 665 to 671 pounds brought $148 to $150 and feeder steers 808 pounds brought $146.  Medium and Large 1 feeder heifers 500 to 545 pounds brought $143 to $152 and feeder heifers 684 pounds brought $139.25.

Boxed beef closed mixed – lower on Choice and firm on Select on light to moderate demand and moderate offerings.  Choice is $.96 lower at $214.46 and Select is $.45 higher at $201.39.  The Choice/Select spread is $13.07.

Estimated cattle slaughter is 122,000 head – up 1,000 on the week and 5,000 on the year.

Lean hog futures closed lower, pressured by demand concerns and the weaker cash trade.  While there was strength in the wholesale values, the global demand uncertainties continue to outweigh any positive market news.   February lean hogs closed $1.62 lower at $65.20 and April lean hogs closed $.62 lower at $65.20.

Cash hogs closed mixed with solid negotiated purchase totals.  There is a large number of ready barrows and gilts coming to market.  While that meets packers procurement needs, it also puts them in a better position to set prices.  The demand picture remains uncertain – and as long as that continues – look for the cash market to struggle to find any solid ground to move prices higher.

Barrows and gilts at the Iowa/Southern Minnesota closed $.19 higher with a range of $44 to $47 for a weighted average of $46.43; the Western Corn Belt closed $.05 lower with a range of $43 to $47 for a weighted average of $46.26; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.58 lower with a range of $42 to $47.89 for a weighted average of $46.58.

Butcher hogs at the Midwest cash markets are steady in Dorchester, Wisconsin at $36.  No markets in Garnavillo, Iowa this week and Zumbrota, Minnesota is not available.

At Illinois, slaughter sow receipts are up on the week and down on the year.  Prices are steady at $21 to $40 with moderate demand for moderate offerings.  Barrow and gilt prices are steady at $26 to $34 with moderate demand for moderate offerings.

Pork values closed higher – up $.68 at $73.33.  The ribs, loins, and hams all closed higher.  Picnics and bellies were lower.  Butts were steady.

Estimated hog slaughter is 479,000 head – up 1,000 on the week and 11,000 on the year.