Market News

Hog futures mixed on demand questions

Chicago Mercantile Exchange live cattle futures were mostly lower on spread activity and profit taking, as traders watched the distribution of this week’s showlist. June was up $.07 at $111.35 and August was down $.40 at $108.52.

Feeder cattle were pressured by the higher move in corn. May was $.37 lower at $134.15 and August was down $.72 at $144.77.

Direct cash cattle markets were at a standstill. This week’s showlist looks mixed, higher in Colorado, Nebraska, and Texas, but lower in Kansas. Last week’s business was mainly at $117 live, down $3 on the week, and mostly $185 dressed, $7 lower, marking the third week in a row of significant losses. Formula totals were mixed, up in Nebraska, down in Kansas and Texas, while total trade volume was down in all three states, with the biggest drop in Kansas. The full reopening of Japan to U.S. beef could increase sales of U.S. beef and beef products by $200 million annually.

Boxed beef closed mixed on moderate to fairly good demand for heavy offerings. Choice was up $1.14 at $221.45 and Select was down $.25 at $208.03. The estimated cattle slaughter of 120,000 head was down 1,000 on the week, but up 1,000 on the year.

At the Oklahoma National Stockyards Monday, feeder steers and heifers were steady to $2 lower, with limited comparable sales, while steer calves were down $2 and heifer calves had a lower undertone in a light test. Receipts were up on the week, down on the year. The USDA says feedlots are getting more current because of high fed cattle kill rates. Medium and Large 1 feeder steers weighing 500 to 650 pounds brought $149 to $178 an 800 to 900-pound steers ranged from $123 to $136.50. Medium and Large 1 feeder heifers weighing 600 to 700 pounds sold at $129 to $139 and 700 to 800-pound heifers were reported at $119.75 to $123.50.

Lean hog futures were mixed on spread adjustments and demand uncertainties linked to China. Also, the fundamentals during the session were conflicting, with steady to lower cash and a sharply higher midday move in pork. June was $.62 lower at $91.75 and July was unchanged at $93.00.

Cash hogs were steady to lower, with moderate to heavy closing negotiated numbers for the major direct markets. Buyers were able to use their leverage to move the needed numbers, while watching wholesale business. The cutout value lost some ground last week, reducing margins, and export demand from China is a question mark, with no new meetings expected until late June. African Swine Fever continues to spread, slashing China’s herd and raising prices, but Beijing is now reportedly encouraging re-expansion of the domestic industry. Domestic demand is an issue, with widespread grilling season delayed by cool, wet weather. Still, pork is off to a strong start this week. A fully implemented USMCA would be a positive for the industry.

Pork closed $1.26 higher at $86.53. All the primal cuts posted gains, with the strongest on picnics and bellies. The estimated hog slaughter of 472,000 head was up 11,000 on the week and 14,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $1.59 lower at $74 to $83 with a weighted average of $82.02, the Western Corn Belt was down $.70 at $72 to $83 for an average of $81.77, and national direct business was $.23 lower at $72 to $83 with an average of $80.92. The Eastern Corn Belt had no recent comparison at $76 to $80.50 for an average of $74.94. Butcher hogs at the Midwest cash markets were steady at $60. Illinois direct sows were $1 to $2 lower at $48 to $63 on moderate demand and offerings. Barrows and gilts were steady at $52 to $58, also on moderate demand and offerings. Boars ranged from $10 to $37.