Market News

Hog futures lower on profit taking

At the Chicago Mercantile Exchange, cattle futures closed higher as contracts were oversold and due for a bounce and found support in higher wholesale values.  The market is also optimistic about this week’s cash trade potential.  There is concern that the flooding and weather issues in cattle country could create some challenges getting cattle to market.  April live cattle closed $.80 higher at $129.12 and June live cattle closed $.15 higher at $122.72.  April feeder cattle closed $1.50 higher at $147.80 and May contracts closed $2.20 higher at $150.52. 

Direct cash cattle trade is still quiet with very little packer inquiry.  Bids have yet to surface and asking prices have been floated at $130 to 132 live and $210 dressed.  Tomorrow’s Fed Cattle Exchange has an offering of 596 head and we might not see much interest in the market until after it’s completed.  And it is very likely significant trade volume will be delayed until the latter half of the week. 

At the Tri-State Livestock Auction in Nebraska, receipts are down on the week and the year.  Compared to last week, steers were steady to $17 higher and heifers were $3 to $6 higher with the exception of 8-weight heifers which were $4 lower.  The USDA says demand was good with a nice selection of cattle off grass offered.  Feeder supply included 46 percent steers and 57 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 552 to 564 pounds brought $189 to $189.10 and feeder steers 674 pounds brought $162.  Medium and Large 1 feeder heifers 515 to 529 pounds brought $161 to $171 and feeder heifers 616 to 635 pounds brought $145.50 to $159.50. 

Boxed beef closed higher on good demand and moderate offerings.  Choice up $1.00 at $229.33 and Select closed $1.25 higher at $219.46.  The Choice/Select spread closed at $9.87.  Estimated cattle slaughter is 120,000 head – even on the week and up 1,000 on a year. 

Lean hog futures closed weak on profit taking after several days of higher prices and steady to weak cash trade during the session.  April lean hogs closed $.20 lower at $70.82 and May contracts closed $.52 lower at $79.15. 

Cash hogs closed higher with moderate negotiated purchase totals.    China is the current driver behind the recent strength in the hog market.  Which is good news since the supply of ready barrows and gilts is ample.  The spread of African Swine Fever in Asia hasn’t slowed and that has the China looking elsewhere for pork.  News has surfaced recently that China’s been showing interest in the US pork market again and that has helped to support the recent jump in hog prices. Barrows and gilts at the Iowa/Southern Minnesota closed $1.02 higher with a range of $52 to $60 for a weighted average of $58.76; the Western Corn Belt closed $.88 higher with a range of $52 to $60 for a weighted average of $58.89; the Easter Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.20 higher with a range of $52 to $60 for a weighted average of $57.46.    

Butcher hog prices at the Midwest cash markets are not available.  At Illinois, slaughter sow prices are $1 higher at $28 to $44 with light to moderate demand for moderate to heavy offerings.  Receipts are up on the week and the year.  Barrow and gilt prices were $1 higher at $31 to $39 with good demand for moderate offerings. 

Pork values closed higher – up $1.75 at $74.14.  Loins, hams, butts, picnics, and ribs all closed higher to sharply higher.  Bellies were weak – down $.50.  Estimated hog slaughter is 467,000 head – down 10,000 on the week and even on the year.