Market News

Hog futures take a breather heading into the weekend

At the Chicago Mercantile Exchange, cattle futures ended the day mixed.  Contracts were overbought and needed a correction.  The Cattle on Feed report was neutral to bearish.  April live cattle closed $.17 lower at $129.72 and June live cattle closed $.40 lower at $123.50.  April feeder cattle closed $.12 lower at $148.80 and May feeder cattle closed $.05 lower at $154.05. 

A light to moderate trade developed across most areas of cattle country.  Live deals were at $128, about $1 higher than the previous week’s weighted averages.  Dressed deals were marked at $208, $4 higher than the previous week’s weighted average basis in Nebraska. 

The Missouri weekly weighted average feeder cattle report has receipts up slightly on the week and up on the year.   Compared to the previous week, steers and heifers traded steady to $3 higher with spots of $5 higher.  The USDA says demand was good with a moderate supply.  Sunshine and warmer weather moved into Missouri, and pastures are trying to green up.  But, there is still some concern about pasture health after the muddy conditions the past few months.  Medium and Large 1 feeder steers 550 to 599 pounds brought $144 to $183.50 and feeder steers 700 to 748 brought $126 to $163.  Medium and Large 1 feeder heifers 500 to 548 pounds brought $130 to $164 and feeder heifers 600 to 649 pounds brought $122 to $154.50. 

At the Nebraska Hay Market, compared to last week hay prices are fully steady.  Demand was good but there are concerns about how hay can be loaded and moved with the excessive moisture across much of the state.  There have been some efforts to procure and donate loads of hay to those in need after the massive flooding.  In Eastern/Central Nebraska Alfalfa: Good large squares brought $150; Premium large rounds $130; Good large rounds $110 to $115.  Grass Hay: Premium large rounds $100 to $105; Good large rounds $90 to $95; Fair large rounds $75.  Premium small squares $160 to $170.  Sun-cured alfalfa pellets 15 percent protein or better $260.  In the Platte Valley area, Alfalfa: Good large round bales $110 to $115.  Grass Hay: Low to fair large rounds $80.  Ground and delivered alfalfa $150 to $160.  Sun-cured alfalfa pellets 15 percent or better $230.  In Western Nebraska, Alfalfa: Premium large squares $175 to $180; good large squares $150 to $160.  Good large rounds $130 to $132.50.  Sun-cured alfalfa pellets 15 percent protein $235. 

Boxed beef closed mixed.  Steady on Choice and firm on Select on moderate demand and offerings.  Choice closed $.22 lower at $229.09 and Select closed $.27 higher at $218.64.  The Choice/Select spread closed at $10.45.  Estimated cattle slaughter is 113,000, that’s up 13,000 on the week and 4,000 on the year.  Saturday’s estimated kill is 42,000 head – down 8,000 on the week and up 16,000 on the year. 

Lean hog futures ended firm in consolidation trade following the choppy trading session.  There is a lot of uncertainty about the actual impact African Swine Fever has had on China and it is adding a lot of volatility to the market.  April lean hogs were unchanged at $78.32 and May lean hogs closed $.42 higher at $87.02. 

Cash hogs closed sharply higher with light to moderate negotiated purchase totals. China’s continues to be the big driver behind the recent surge in the cash markets.  African Swine Fever hasn’t been controlled and the continued spread of the disease has China looking elsewhere on the global market for pork.  That’s good news considering the supply of ready barrows and gilts remains ample. Trade negotiations are ongoing with China and there is still hope a deal can be agreed to sooner rather than later.  Barrows and gilts at the Iowa/Southern Minnesota closed $4.06 higher with a range of $56 to $71.50 for a weighted average of $70.24; the Western Corn Belt is $2.98 higher with a range of $56 to $71.50 for a weighted average of $68.79; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $2.29 higher with a range of $56 to $71.50 for an average of $66.44. 

The USDA says early weaned pigs were $6 per head higher.  All feeder pigs $9 per head higher.  Demand was moderate for moderate offerings.  Receipts included 46 percent formulated prices.  Total composite formula rage was $35.90 to $51.06 with an average of $41.78.  Total composite cash range was $35 to $65 with a weighted average of $51.73.  The average for all early weaned pigs was $46.61 and the average for all feeder pigs was $79.30.

Butcher hogs at the Midwest cash markets are $2 lower at $38.  At Illinois, slaughter sow prices are steady at $28 to $43 with light to moderate demand for light offerings.  Receipts are up on the week and the year.  Barrow and gilt prices are $3 higher at $38 to $45 with good demand for moderate offerings. 

Pork values closed higher – up $1.54 at $77.79.  Butts, hams, ribs, bellies, and loins were all higher to sharply higher.  Picnics were weak.  Estimated hog slaughter is 455,000 head – that’s up 21,000 on the week up 2,000 on the year.  Saturday’s estimated kill is 166,000 head – that’ sup 4,000 on the week and up 54,000 on the year.