Market News

Demand worries pressure hog futures

At the Chicago Mercantile Exchange, live cattle futures closed firm to higher in a narrow trading range as the sharp losses in the hog market limited the days gains.  There is some guarded optimism ahead of the week’s cash trade.  February live cattle closed $.45 higher at $128.32 and April live cattle closed $.75 higher at $128.20.  March feeder cattle closed $.12 higher at $143.87 and April feeder cattle closed $.07 higher at $146.07. 

It was another quiet day for direct cash cattle activity.  There are just a few scattered bids on the table at $123 live and $198 dressed.  Asking prices are $128 live and $205 dressed.  The distance between the two will likely push any significant trade volume until later in the day today or into tomorrow. 

At the Kingsville Livestock Auction in Missouri, receipts are up on the week and the year.  Compared to the most recent sale steer and heifer calves sold steady to $5 higher and yearlings were unevenly steady with the most noticeable movement on steers over 750 pounds, which traded with a lower undertone.  There was a heavy supply of quality cattle offered.  The USDA says demand was good for calves and yearling heifers and moderate for yearling steers over 750 pounds.  There was a mix of both light and heavy cattle offered and flesh conditions varied.  Feeder supply included 54 percent steers and 71 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 658 to 691 pounds brought $149.50 to $162 and feeder steers 770 to 795 pounds brought $135.25 to $139.85.  Medium and Large 1 feeder heifers 600 to 648 pounds brought $140.50 to $147.25 and feeder heifers 654 to 684 pounds brought $139.25 to $148. 

Boxed beef closed lower on light demand and moderate offerings.  Choice ended the day $.78 lower at $216.49 and Select closed $2.04 lower at $211.50.  The Choice/Select spread closed at $4.99.    Estimated cattle slaughter is 108,000 head – even on the week and down 5,000 on the year. 

Lean hog futures ended the day sharply lower with the expanded trading limits.  Follow through pressure along with supply and demand worries are driving prices lower.  Contracts are at a premium to cash. April lean hogs closed $3.55 lower at $52.97 and May lean hogs closed $2.42 lower at $63.02. 

Cash hogs closed weak with moderate negotiated purchase totals.  The supply of ready barrows and gilts is ample.  Packers haven’t had to work hard to move their desired numbers this week and prices reflect that.  African Swine continues to spread and the fact it hasn’t been controlled is providing hope that it will eventually boost prices and increase demand for US pork.  Barrows and gilts at the Iowa/Southern Minnesota closed $.33 lower with a range of $44 to $49 for a weighted average of $47.81; the Western Corn Belt closed $.34 lower with a range of $44 to $49 for a weighted average of $47.80; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.28 lower with a range of $44 to $49 for a weighted average of $47.90.    

Butcher hogs at the Midwest cash markets are steady to $1 lower at $32.  At Illinois, slaughter sow prices were $1 to $5 higher at $24 to $43 with moderate demand for moderate offerings.  Receipts are down on the week and up on the year.  Barrows and gilts are mostly steady to $1 lower at $25 to $34 with moderate demand for moderate offerings. 

Pork values closed steady – up $.26 at $60.17.  Bellies and hams closed higher.  Picnics were steady.  Loins, butts, and ribs were lower to sharply lower.  Estimated hog slaughter is 463,000 head – down 1,000 on the week and the year.  Tuesday’s revised hog slaughter is 476,000 head.