Market News

Hog futures surge on China news

At the Chicago Mercantile Exchange, cattle futures ended the day with moderate gains on technical buying.  April closed $.72 higher at $127.40 and June closed $1.02 higher at $120.35. March closed $.45 lower at $141 and April closed $.52 higher at $144.65. 

Direct cash cattle trade activity is quiet, as severe weather has moved in much of cattle country.  There was a light to moderate trade that developed Wednesday at $127 live and mostly $204 dressed.  Both are $1 lower than the previous week’s weighted averages.  Asking price for cattle left on showlists are $130 live and $206 dressed.  Business in the South has yet to develop.

At the Ozarks Regional Stockyards in Missouri – receipts are up on the week and the year.  Compared to last week, steer calves under 600 pounds were $3 to $7 lower with heavier weights unevenly steady from $2 lower to $2 higher.  Heifer calves under 550 pounds were $4 to $8 lower with heavier weights steady to $3 lower.  Yearlings were not well tested, however undertones were steady to firm.  The USDA says demand was moderate and fluctuated throughout the day.  The supply was heavy.  Feeder supply included 56 percent steers and 38 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 651 to 698 pounds brought $145.50 to $155 and feeder steers 707 to 746 pounds brought $139 to $153.  Medium and Large 1 feeder heifers 552 to 596 pounds brought $127 to $136 and feeder heifers 652 to 696 pounds brought $115 to $128. 

Boxed beef closed weak on light to moderate demand and moderate offerings.  Choice closed $.54 lower at $227.70 and Select closed $.52 lower at $218.76.  The Choice/Select spread closed at $8.94.  Estimated cattle slaughter is 99,000 head – down 17,000 on the week and down 20,000 on the year. 

Lean hog futures closed sharply higher on the recent strength in the cash trade and wholesale values.  China needs pork.  Their hog prices have been on the rise and they are importing more pork from the global market.  That’s supportive to US hog prices.  April lean hogs closed $2.32 higher at $65.80 and May lean hogs closed $2.62 higher at $74.90.

Cash hogs closed higher with light to moderate negotiated purchase totals.  The supply of ready barrows and gilts is ample.  News that a deal with China could potentially be near is building strength into the markets.  Also, the spread of African Swine Fever throughout Asia hasn’t slowed.  Both could have the potential to bolster demand for US pork and push prices higher.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.38 higher with a range of $46 to $54 for a weighted average of $53; the Western Corn Belt closed $1.46 higher with a range of $46 to $54 for a weighted average of $53; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.08 higher with a range of $46 to $54 for a weighted average of $51.52. 

Butcher hogs at the Midwest cash markets are steady at $36.  At Illinois, slaughter sow prices are steady at $29 to $44 with light to moderate demand for moderate offerings.  Barrow and gilt prices are steady at $29 to $35 with good demand for moderate offerings. 

Pork values closed $.95 higher at $68.80.  Loins, picnics, bellies, and hams all closed higher.  Butts were weak.  Ribs closed closer.  Estimated hog slaughter is 460,000 head – down 9,000 on the week and even on the year. 

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