Market News

Lower cash pressures hog futures

At the Chicago Mercantile Exchange, cattle futures ended the day mostly higher on support from higher wholesale values.  However, there is some concern with the winter weather in the forecast and the negative impact it could have on cattle.  April live cattle closed $.25 lower at $125.80 and June contracts closed $.22 higher at $120.57.  April feeder cattle closed $.57 higher at $146.72 and May contracts closed $.35 higher at $150.57. 

Direct cash cattle trade activity started the week quietly.  Bids and asking prices have yet to be established.  This week’s showlists appear to be about steady in Texas, somewhat smaller in Kansas, lower in Nebraska, but higher in Colorado.  Significant trade volume will likely be delayed until sometime Thursday or Friday. 

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 under 800 pounds were unevenly steady and steers 800 pounds and over were steady to $2 lower.  Feeder heifers are steady to $2 higher.  Steer calves are steady to $4 higher and heifer calves are mostly steady to $1 higher.  The USDA says demand was moderate to good for feeders and good for grazing calves.  Quality is average to attractive.  Feeder supply included 56 percent steers and 62 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 702 to 745 pounds are at $146 to $153.50 and feeder steers 818 to 847 pounds are $138 to $142.75.  Medium and Large 1 feeder heifers 602 to 646 pounds brought $145 to $152.25 and feeder heifers 653 to 695 pounds brought $137 to $142.75. 

Boxed beef closed firm to higher on moderate to fairly good demand and moderate to heavy offerings.  Choice closed $1.74 higher at $228.67 and Select closed $.60 higher at $220.88.  The Choice/Select spread closed at $7.79. 

Estimated cattle slaughter is 120,000 head – up 5,000 on the week and 2,000 on the year. 

Lean hog futures ended the day lower on pressure from the sharply lower cash trade during the session.  The market is also growing impatient with the lack of business from China as the country continues to struggle with the spread of African Swine fever.  Losses were limited by the day’s higher move in pork. April lean hogs closed $.42 lower at $78.60 and May contracts closed $1.55 lower at $89.40. 

Cash hogs closed weak to lower with moderate negotiated purchase totals.  The volatility in the hog market continues.  Additional cases of African Swine Fever have been reported in Asia and the disease continues to spread, but the cash market isn’t as certain that the US pork sector will see increased demand and benefit from the spread of the disease.  The supply of ready barrows and gilts is ample and hog slaughter totals continue at their record high pace – adding more pork to a market that is already saturated and projected to grow. Barrows and gilts at the Iowa/Southern Minnesota closed $.28 lower with a range of $67 to $78 for a weighted average of $76.38; the Western Corn Belt closed $.84 lower with a range of $67 to $78 for a weighted average of $75.68; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.38 lower with a range of $67 to $78 for a weighted average of $75.40. 

Butcher hog prices at the Midwest cash markets are at $55, which is a $7 decline from Friday’s prices.  At Illinois, slaughter sow prices were $1 lower at $36 to $49 with good demand for light offerings.  Receipts were down on the week and the year.  Barrow and gilt prices were firm at $46 to $56 with good demand for moderate offerings. 

Pork values closed higher – up $1.45 at $83.29.  Bellies, butts, loins, and hams were all higher.  Ribs were weak.  Picnics were lower. 

Estimated hog slaughter is 475,000 head – down 1,000 on the week and up 16,000 on the year.