Market News

Lean hogs lower on demand concerns

At the Chicago Mercantile Exchange, live cattle futures closed with modest gains on short covering and support from the higher cash trade.  Feeder cattle futures were higher on the same factors.  August live cattle closed $.25 higher at $107.87 and October live cattle closed $.35 higher at $109.32.  August feeder cattle closed $.27 higher at $142.62 and September feeder cattle closed $.42 higher at $143.27. 

A light dressed trade developed in parts of the North today at $180 to $185.  That’s steady to $5 higher than last week’s weighted average basis in Nebraska.  Trade in the South remained undeveloped.  Asking prices for cattle remaining on showlists is $113 to $114 live and $184-plus, dressed.  Significant trade volume is likely to develop throughout the day on Friday. 

At the Bassett Livestock Auction in Nebraska, receipts were up the week and the year.  Compared to the recent sale steers 500 to 750 pounds were $5 to $14 higher, heifers 450 to 650 pounds were $3 to $10 higher.  The USDA says demand was very good with several buyers and a good crowd for the Annual BBQ Yearling and Fall-Calf Auction.  Feeder supply included 72 percent steers and 83 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 804 to 846 pounds brought $149.75 to $159.85 and feeder steers 903 to 947 pounds brought $142.75 to $153.75.  Medium and Large 1 feeder heifers 655 to 699 pounds brought $145 to $155.25 and feeder heifers 821 to 835 pounds brought $141.25 to $144.75. 

Boxed beef closed steady to weak on light to moderate demand and offerings.  Choice closed $.65 lower at $213.77 and Select closed $.10 lower at $190.79.  Estimated cattle slaughter is 118,000 head – up 2,000 on the year. 

Lean hog futures closed lower on profit taking and lower wholesale values during the session.  The market was also expecting to see a jump in export sales this week – when in fact it did the opposite and there was a decline.  July lean hogs closed $.15 lower at $71.66 and August lean hogs closed $2.55 lower at $79.17. 

Cash hogs ended the day steady to firm.  There has been renewed optimism that demand could see a spike as China continues to struggle to stop the spread of African Swine Fever.  China also had promised that it would begin making purchases of US ag goods and another week has gone by without an uptick in pork purchases.  With the heavy supplies and continued large slaughter runs, the ability for the market to move higher is limited. Barrows and gilts at the Iowa/Southern Minnesota closed $.07 higher with a range of $56 to $71 for a weighted average of $69.21; the Western Corn Belt closed $.04 higher with a range of $56 to $71 for a weighted average of $69.09; and the National Daily Direct closed $.28 higher with a base range of $56 to $71 for a weighted average of $67.82.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 lower at $38 to $42. At Illinois, slaughter sow prices are steady at $20 to $32 with moderate demand for moderate to heavy offerings.  Receipts were down on the year.  Barrow and gilt prices were $2 higher at $40 to $48 with moderate demand offerings. 

Pork values closed firm – up $.57 at $72.17.  Bellies jumped $7.17.  Loins were steady.  Hams, butts, ribs, and picnics were all weak to lower.  Estimated hog slaughter is 479,000 head – up 23,000 on the year.