Market News

Hog futures pushed higher on demand strength

At the Chicago Mercantile Exchange, cattle future were mixed ahead of widespread direct cash business and concerns after weather continues to plague much of cattle country.  April live cattle closed $.77 lower at $128.32 and June contracts closed $.65 higher at $122.57.  April feeder cattle closed $.62 lower at $146.30 and May contracts closed $.12 lower at $148.32. 

Direct cash cattle trade is quiet which is typical to start the week.  This week’s showlists appear to be mixed – lower in Kansas, Colorado, and Nebraska – but higher in Texas.  Bids and asking prices have yet to surface and it’s likely significant trade volume will be delayed until the latter half of the week.  Total trade volume last week was mixed – higher in Kansas and Nebraska but lower in Texas. 

At mid-session at the Oklahoma National Stockyards, receipts are down on the week and up on the year.  Compared to last week, feeder steers are $2 to $6 higher.  Feeder heifers are steady to $3 higher.  Steer and heifer calves are $5 to $12 higher.  The USDA says demand was good for all classes and extremely good for thin-fleshed cattle suitable for grass.  Pastures are beginning to green up nicely as temperatures warm.  Feeder supply included 60 percent steers and 48 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 652 to 696 pounds are $149 to $158 and feeder steers 801 to 849 pounds are $131 to $140.50.  Medium and Large 1 feeder heifers 500 to 547 pounds brought $149 to $163 and feeder heifers 602 to 645 pounds are at $136 to $146.50. 

Boxed beef closed higher on good demand and light offerings.  Choice up $1.34 at $228.33 and Select is $.87 higher at $218.21.  Estimated cattle slaughter is 115,000 head – down 4,000 on the week and 3,000 on the year.    

Lean hog futures closed higher on demand strength.  Strong wholesale values during the session, higher cash trade, and news that China has the potential to reenter the US pork market all drove prices higher.  April lean hogs closed $2.22 higher at $71.02 and May contracts closed $1.77 higher at $79.67. 

Cash hogs closed sharply higher with moderate negotiated purchase totals.  China is the big driver behind the markets right now.  News that they are showing signs of interest in the US market continues to propel pricess higher.  That’s good news considering the supply of ready barrows and gilts remains ample.  The spread of African Swine Fever hasn’t slowed and that’s also supportive to demand and prices.  Barrows and gilts at the Iowa/Southern Minnesota closed $2.03 higher with a range of $50 to $58 for a weighted average of $58.51; the Western Corn Belt closed $1.76 higher with a range of $48 to $58.50 for an average of $56.84; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.81 higher with a range of $48 to $58.50 for a weighted average of $55.73. 

Butcher hogs at the Midwest cash markets are at $40.  That’s $4 higher in Garnavillo, Iowa.  At Illinois, slaughter sow prices are $1 lower at $29 to $43 with light to moderate demand for moderate to heavy offerings.  Barrow and gilt prices are $2 higher at $31 to $38 with good demand for moderate offerings. 

Pork values closed sharply higher – up $3.50 at $72.39.  All of the primals were higher – with the most strength in the hams, bellies, and ribs.  Estimated hog slaughter 463,000 head – down 12,000 on the week and even on the year.  Friday’s slaughter total was revised to 434,000 head.