Market News

Hog futures soar on demand hopes

At the Chicago Mercantile Exchange, cattle futures closed higher on the potential for a higher cash trade this week, concerns as weather continues to create challenges getting cattle to market, and some spillover support from the sharply higher hog trade.  April live cattle closed $.45 higher at $129.57 and June contracts closed $.65 higher at $123.37.  April feeder cattle closed $.52 higher at $148.32 and May contracts closed $1.60 higher at $152.12. 

Direct cash cattle trade is quiet and packer inquiry remains minimal.  The first bids of the week have yet to surface and asking prices are holding firm at $130 to $132 live and $210 plus, dressed.   Significant trade volume may be delayed until the sometime Thursday or Friday. 

At the Huss-Platte Valley Auction in Nebraska, receipts are up on the week and down on the year.  Compared to last week’s weather market steers and heifers sold sharply higher.  There was a large crowd of buyers who bid readily from start to finish.  Receipts were weakened for the second week in a row due to soft, muddy conditions.  Feeder supply included 52 percent steers and 92 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 657 to 688 brought $155.50 to $167.50 and feeder steers 800 to 846 pounds brought $140.50 to $148.  Medium and Large 1 feeder heifers 611 to 640 pounds brought $144 to $154.50 and feeder heifers 700 to 735 pounds brought $132.75 to $135.85. 

Boxed beef closed weak to lower on light to moderate demand and light offerings.  Choice closed $.66 lower at $228.67 and Select closed $.83 lower at $218.63.  The Choice/Select spread is $10.04.  Estimated cattle slaughter is 120,000 head – up 11,000 on the week and 2,000 on the year. 

Lean hog futures ended the day locked limit higher through August bolstered by strong cash trade and expectations of increased demand for pork on the global market as a result of the continued spread of African Swine Fever.  April closed $3 higher at $73.82 and May contracts closed $3 higher at $82.15. 

Cash hogs closed sharply higher with large negotiated purchase totals.  The spread of African Swine Fever hasn’t slowed throughout Asia and that has China looking elsewhere for pork on the global market, including the US.  That has pork prices continue to surge higher and is welcomed news considering the supply of ready barrows and gilts remains ample.  Trade talks with China continue.  Barrows and gilts at the Iowa/Southern Minnesota closed $2.73 higher with a range of $54 to $64 for a weighted average of $61.48; the Western Corn Belt closed $2.84 higher with a range of $54 to $64 for a weighted average of $61.45; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $2.79 higher with a range of $54 to $64 for a weighted average of $60.38. 

Pork values closed steady – down $.09 at $74.05.  Loins and picnics were lower to sharply lower.  Butts were weak.  Ribs closed firm.  Hams and bellies were higher.  Estimated hog slaughter is 479,000 head – up 27,000 on the week and 25,000 on the year.