Market News

Hog futures drop on profit-taking

At the Chicago Mercantile Exchange, cattle futures closed lower, pressured by supply concerns following Friday’s Cattle on Feed report.  The lackluster wholesale trade didn’t provide any support to prices.  April live cattle closed $2.15 lower at $127.57 and June contracts closed $2.37 lower at $121.12.  April feeder cattle closed $2.60 lower at $146.20 and May contracts closed $3.35 lower at $150.70. 

Direct cash cattle trade started the week quietly.  Bids and asking prices have yet to be established.  This week’s showlists appear to be larger in Kansas, Colorado, and Nebraska, but smaller in Texas.  It’s likely significant trade volume will be delayed until the latter half of the week. 

At midsession at the Oklahoma Livestock Auction, receipts are down on the week and up on the year.  Compared to the last sale, feeder steers sold steady to $1 higher.  Feeder heifers were mostly $1 to $3 higher with instances of $6 higher on heifers 600 to 650 pounds.  Steer and heifer calves are steady to $1 higher.  The USDA says quality was average with a few big loads of attractive cattle on offer.  Demand was good.  Feeder supply included 47 percent steers and 45 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 610 to 642 pounds brought $147 to $175.50 and feeder steers 751 to 795 pounds brought $138 to $147.75.  Medium and Large 1 feeder heifers 507 to 543 pounds brought $149 to $158 and feeder heifers 600 to 646 pounds brought $138 to $149. 

Boxed beef closed steady on moderate demand for moderate to heavy offerings.  Choice was $.09 lower at $229 and Select was $.09 higher at $218.73.    Estimated cattle slaughter is 119,000 head – up 4,000 on the week and the year.

Lean hog futures closed mostly lower on profit-taking.  The market has gained nearly $20 over the past two weeks and needed a break.  Contracts are at a premium to cash.  April lean hogs closed $.32 higher at $78.65 and May contracts closed $.27 lower at $86.75. 

Cash hogs closed higher to sharply higher with moderate negotiated purchase totals.  It was a slow start to the day, but business picked up and buyers got more aggressive in order to move the numbers they needed in the afternoon.  China continues to be the driving force behind the recent surge in the cash markets.  African Swine Fever hasn’t been controlled and the spread of the disease has China looking elsewhere on the global market for pork.  Trade negotiations with China are set to resume this week.  Supplies of ready barrows and gilts remain ample and slaughter runs continue to hit record or near record numbers almost daily.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.22 higher with a range of $60 to $74 for an average of $71.45; the Western Corn Belt closed $2.16 higher with a range of $60 to $74 for an average of $70.50; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $2.55 higher with a range of $60 to $74 for an average of $68.82. 

Butcher hog prices at the Midwest cash markets are at $45 and $46.  At Illinois, slaughter sow prices are steady at $28 to $43 with light to moderate demand for light offerings.  Barrow and gilt prices are $1 higher at $38 to $46 with good demand for moderate offerings. 

Pork values closed sharply higher – up $2.14 at $80.20.  All of the primals were higher to sharply higher with the most strength in the hams and the bellies. Estimated hog slaughter is 474,000 head – up 11,000 on the week and 15,000 on the year.