Market News

Lower pork trend pressures hog futures

At the Chicago Mercantile Exchange, live cattle futures closed higher on optimism ahead of widespread direct cash business and strength in the wholesale values at midday.  Feeder cattle futures were higher on the days lower move in corn.  February live cattle closed $1.25 higher at $127.87 and April live cattle closed $1.27 higher at $128.45.  March feeder cattle closed $1.15 higher at $143.75 and April feeder cattle closed $.77 higher at $146. 

Direct cash cattle trade is quiet this afternoon.  There are just a few scattered starter bids on the table $198 dressed.  But, asking prices have yet to surface.  It looks like significant trade volume will be delayed until the latter half of the week.  Wednesday Fed Cattle Exchange has an offering of 693 head. 

At the Joplin Regional Stockyards in Missouri, receipts are up on the week and down on the year.  Compared to the most recent sale, steer calves and yearlings were steady, heifer calves were $2 to $6 higher.  The USDA says demand was good and the supply was light.  Weather continues to impact the quantity and quality of cattle offered.  Feeder supply included 55 percent steers and 59 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 699 pounds brought $140 to $153.50 and feeder steers 756 to 790 pounds sold for $137 to $143.  Medium and Large 1 feeder heifers 611 to 646 pounds brought $139.50 to $144 and feeder heifers 652 to 698 pounds brought $130 to $140. 

Boxed beef closed steady to firm on moderate to fairly good demand and moderate to heavy offerings.  Choice closed $.12 lower at $217.27 and Select closed $.54 higher at $213.45.   Estimated cattle slaughter is 114,000 head – down 4,000 on the week and 3,000 on the year. 

Lean hog futures ended with limit losses through August as widespread technical pressure moved through the market.  Wholesale values were weak during the session and contracts are at a premium to cash.  The hog market will see expanded trading limits on Wednesday.  April lean hogs closed $3.00 lower at $56.52 and May lean hogs closed $3.00 lower at $65.45. 

Cash hogs closed weak with moderate to solid negotiated purchase totals.  The supply of ready barrows and gilts is ample.  Packers have plenty of hogs available and that will likely limit any price movement as we see processing runs ramp up again.  Buyers and sellers continue to monitor progress on trade talks – specifically with China.  And the market is watching the African Swine Fever situation as it continues to spread.  New cases have been confirmed in Romania’s western region and in Vietnam.  There’s still hope that it will eventually provide some additional demand and price support for US pork.  Barrows and gilts at the Iowa/Southern Minnesota closed $.34 lower with a range of $44.50 to $49 for a weighted average of $48.25; the Western Corn Belt is $.24 lower with a range of $44.50 to $49 for a weighted average of $48.35; the Eastern Corn Belt had no comparison but traded with a range of $47 to $48.52 for a weighted average of $48.32; and the National Daily Direct closed $.02 lower with a range of $44.50 to $49 for a weighted average of $48.23.  Butcher hogs at the Midwest cash markets are steady at $32. 

At Illinois, slaughter sow prices are mixed at $23 to $38 with moderate demand for moderate offerings.  Receipts are down on the week and the year.  Barrow and gilt prices are steady to $1 lower at $25 to $35 with moderate demand for moderate offerings. 

Pork values closed sharply lower – down $1.67 at $59.91.  Bellies dropped $7.04.  Loins and butts were lower.  Hams and picnics were firm.  Ribs were higher.  Estimated hog slaughter is 481,000 – up 28,000 on the week and 37,000 on the year.