Market News

China rumors prop up hog futures

At the Chicago Mercantile Exchange, cattle futures closed firm to higher ahead of widespread direct cash business.  Early bids indicate there could be some positive support from this week’s cash trade.  February live cattle closed $.75 higher at $122.90 and April live cattle closed $.37 higher at $124.90.  January feeder cattle closed $.27 higher at $147.57 and March feeder cattle closed $.37 higher at $145.27.

Direct cash cattle trade remains fairly quiet.  There have been a few bids on the table at $185 to $187 dressed in Nebraska.  Asking prices are around $121 to $122 live and $190-plus, dressed.  Significant trade volume will likely be delayed until the end of the week.

At the Ozarks Regional Stockyards in Missouri, receipts are down on the week and the year.  Compared to last week steer calves under 600 pounds were $6 to $12 higher and heifer calves under 600 pounds were unevenly steady.  Heavier weight steer and heifer calves were $3 to $6 higher.  Yearlings were not well tested, but did trade with a steady to firm undertone.  The USDA says demand was good on a moderate supply.  Feeder supply included 49 percent steers and 35 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 556 to 587 pounds brought $149 to $166 and feeder steers 603 to 643 pounds brought $140 to $155.  Medium and Large 1 feeder heifers 509 to 548 pounds brought $130 to $136 and feeder heifers 604 to 632 pounds brought $132 to $142 pounds.

Boxed beef closed steady on Select and sharply lower on Choice on light to moderate demand and moderate to heavy offerings.  Choice down $2.21 at $212.25 and Select closed $.18 higher at $201.57.  Estimated cattle slaughter is 120,000 head – even on the week and the year.

Lean hog futures closed firm on hopes that the rumors China has resumed purchasing soybeans will carry over into the hog complex.  However, weaker wholesale values and cash trade is helping to limit any moves higher.  February lean hogs closed $.50 higher at $65.70 and April lean hogs closed $.50 higher at $71.95.

Cash hogs closed weak with moderate negotiated purchase totals.  The ample supply of ready barrows and gilts makes it easier for packers to set prices and move numbers.  The large slaughter runs are expected to continue through the end of the year.  The ongoing demand uncertainty has the cash market struggling to find any footing that could potentially launch prices higher. Barrows and gilts at the Iowa/Southern Minnesota closed $.33 lower with a range of $42 to $47 for a weighted average of $46.05; the Western Corn Belt closed $.21 lower with a range of $42 to $47 for a weighted average of $46.01; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.27 lower with a range of $42 to $47.21 for a weighted average of $46.33.

Butcher hogs at the Midwest cash markets are steady at $36.  At Illinois, slaughter sow receipts are down on the week and the year.  Prices are steady at $22 to $40 with moderate demand for moderate offerings.  Barrow and gilt prices are steady at $27 to $34 with moderate demand for moderate offerings.

Pork values closed lower – down $.89 at $72.44.  Butts, loins, and hams all closed sharply lower.  Bellies and ribs closed firm.  Picnics were sharply higher.  Estimated hog slaughter is 477,000 head – even on the week and up 9,000 on the year.