Market News

Wholesale values support nearby hog futures

At the Chicago Mercantile Exchange, live cattle futures ended the day mixed with strength in the front-month contracts.  The market is waiting for some direction ahead of widespread cash trade, but firm wholesale values helped prop up some prices.  Feeder cattle futures closed firm on support in the day’s lower move in corn.  February live cattle closed $1.52 higher at $126.95 and April live cattle closed $.75 higher at $127.42.  January feeder cattle closed $.10 lower at $144.75 and March feeder cattle closed $.35 higher at $144.75. 

Direct cash cattle trade has been at a standstill.  Bids and asking prices are still not established.  We should start to see activity improve as the week progresses.  Wednesday’s Fed Cattle Exchange has an offering of 542 head.  But it’s likely significant trade volume will be delayed until the end of the week.

At the Tri-State Livestock Auction in Nebraska receipts are nearly steady on the week and even on the year.  Compared to the last sale, steers under 600 pounds were steady to $6 higher and steers over 600 pounds were $2 to $7 lower.  Heifers were steady to $3 lower.  The USDA says demand was moderate to good.  Feeder supply included 60 percent steers and 61 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 557 to 590 pounds brought $156 to $167 and feeder steers 703 to 748 pounds brought $147.50 to $154.  Feeder heifers 504 to 528 pounds brought $140 to $159.50 and feeder heifers 650 to 688 pounds brought $138.50 to $140. 

Boxed beef values closed steady to firm on moderate to fairly good demand and heavy offerings.  Choice closed $.19 higher at $212.21 and Select closed $.41 higher at $205.87.  Estimated cattle slaughter is 120,000 head – that’s up 1,000 on the week and 3,000 on the year. 

Lean hog futures closed mixed, supported by the days higher wholesale values at midday, but are pressured by demand uncertainties and the weakening cash trade.  February lean hogs closed $.30 higher at $62.15 and April lean hogs closed $.12 higher at $66.95. 

Cash hogs closed weak with light to moderate negotiated purchase totals.  Weather will likely continue to play a role in the markets.  There’s another system in the forecast for this weekend, which could add additional challenges moving numbers.  If we were to see a slowdown in slaughter runs – hog weights would likely push higher adding more pork to a market that saturated and continues to struggle with demand certainty.  Barrows and gilts at the Iowa/Southern Minnesota closed $.48 lower with a range of $47 to $53 for a weighted average of $51.69; the Western Corn Belt closed $.31 lower with a range of $47 to $53 for a weighted average of $51.66; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.29 lower with a range of $47 to $53 for a weighted average of $51.46. 

Butcher hog prices at the Midwest cash markets are not available this morning.  At Illinois, slaughter sow receipts are up on the week and down on the year.  Prices are steady at $17 to $31 with light to moderate demand for moderate offerings.  Barrows and gilts are steady at $30 to $36 with moderate demand for moderate offerings.   

Pork values closed weak – down $.86 at $70.33.  Bellies dropped like a rock – down $12.59.  All the other primals were firm to sharply higher.  Estimated hog slaughter is 480,000 head – up 6,000 on the week and 25,000 on the year.