Market News

Supply concerns pressure hog futures

At the Chicago Mercantile Exchange, live cattle futures closed lower on profit taking and the lack of direction from the cash trade.  Feeder cattle futures fell, pressured by the days higher move in corn.  February live cattle closed $.72 lower at $127.10 and April live cattle closed $.82 lower at $126.90.  January feeder cattle closed $2.35 lower at $141.42 and March feeder cattle closed $1.77 lower at $142.92. 

Another day with zero direct cash cattle activity.  The only bids floated were at $197 dressed in Nebraska.  Asking prices are holding at $128 plus live and $200 to $203 dressed.  If any business is going to be completed this week, packer inquiry will need to improve.  Look for significant trade volume to develop late in the day, Friday. 

At the Springfield Livestock Marketing Center in Missouri, receipts are down on the week and up on the year.  Compared to the latest sale steers $5 to $10 lower and heifers closed $2 to $7 lower.  The USDA says demand was moderate to light and supply was light.  Feeder supply included 46 percent steers and 49 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 633 to 644 brought $133 to $136.  Medium and Large 1 feeder heifers 659 to 683 pounds brought $115 to $122. 

Boxed beef closed firm on moderate demand and offerings.  Choice closed $.57 higher at $212.50 and Select closed $.70 at $207.65.   Estimated cattle slaughter is 121,000 head – up 1,000 on the week and 2,000 on the year. 

Lean hog futures closed mostly lower on supply and demand concerns.  The lack of news about any pork sales to China is adding pressure to prices.  Contracts are at a premium to cash.  The front month contract was support by spread activity. February lean hogs closed $.80 higher at $60.85 and April contracts closed $.45 lower at $64.62. 

Cash hogs closed mixed with very light negotiated purchase totals.  The supply of ready barrows and gilts is ample, and packers have been pretty aggressive in their procurement efforts this week.  Weather will likely continue to play a role in the markets, especially if this winter storm develops as projected.  Buyers have been busy, but the overall demand picture still remains unclear and that adds uncertainty to the market. Barrows and gilts at the Iowa/Southern Minnesota closed $.43 higher with a range of $49 to $53 for a weighted average of $52.58; the Western Corn Belt closed $.10 higher with a range of $49 to $53 for a weighted average of $52.13; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.33 lower with a range of $46 to $53 for a weighted average of $51.44. 

Butcher hog prices at the Midwest cash markets are unavailable today.  At Illinois, slaughter sow receipts are down on the week and up on the year.  Prices are steady at $16 to $31 with light to moderate demand for moderate offerings.  Barrow and gilt prices are steady at $30 to $36 with moderate demand for moderate offerings. 

Pork values closed firm – up $.46 at $70.10.  Picnics and hams were higher.  Loins were steady.  Bellies, butts, and ribs all closed lower.  Estimated hog slaughter is 473,000 head – down 4,000 on the week and up 48,000 on the year.