Market News

Demand expectation pushes lean hogs higher

At the Chicago Mercantile Exchange, live cattle futures ended the day lower on pressure from wholesale values, the steady to weak cash trade, and position squaring ahead of Friday’s report.  Feeder cattle futures were lower on the same factors with additional pressure from the days steady to firm move in corn.  August live cattle closed $.10 lower at $108.12 and October live cattle closed $.50 lower at $108.75.  August feeder cattle closed $.47 lower at $140.57 and September feeder cattle closed $1.10 lower at $140.77. 

A light to moderate trade has developed across cattle country.  Live deals in the South are at $111, steady to $1 lower than last week.  Deals in the North are at mostly $183, that’s generally steady with last week’s weighted averages.  There were some deals marked for delayed delivery in parts of Nebraska at $183 to $185 dressed.  Asking prices for cattle remaining on showlists are $114+ live and $185+ dressed. 

At the Kingsville Livestock Auction in Missouri, receipts were up on the week.  Compared to the most recent sale, feeder steers were $5 lower with the largest decline on 650 to 700-pound steers, heifers were steady.  The USDA says demand was moderate as the heat is expected to build throughout the week.  Supply was moderate and included several yearlings.  Feeder supply included 45 percent steers and 57 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 663 to 670 pounds brought $145.25 to $148 and feeder steers 850 pounds brought $142.60.  Medium and Large 1 feeder heifers 553 to 597 pounds brought $138.25 to $145.50 and feeder heifers 721 to 741 pounds brought $141 to $141.75. 

Boxed beef closed weak to lower on light demand and heavy offerings.  Choice closed $.36 lower at $212.57 and Select closed $.82 lower at $188.32.  The Choice/Select spread is $24.23.    Estimated cattle slaughter is 122,000 head – up 3,000 on the week and 4,000 on the year. 

Lean hog futures ended the day higher on support from higher wholesale values at midday and hope that US pork will see an eventual demand boost on the global market.  However, the markets can only continue to move higher on expectations for so long – actual demand increases will need to be seen sooner rather than later.  The latest export sales numbers come out Thursday morning.  August lean hogs closed $2.95 higher at $82 and October lean hogs closed $2.52 higher at $77.82. 

Cash hogs closed higher with moderate to heavy negotiated purchase totals.  Buyers had to dig deeper today to meet their desired numbers.  The market has been stuck in a back and forth pattern.  Today, the potential for an increase in demand helped to boost prices higher.  However, supplies remain ample and slaughter runs are still well above last year’s numbers and more pork is being added to an already saturated market.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.57 higher with a range of $58 to $74 for a weighted average of $72.18; the Western Corn Belt is $1.40 higher with a range of $57 to $74 for a weighted average of $71.86; the Eastern Corn Belt closed $1.15 higher with a range of $66.50 to $70.50 for a weighted average of $68.61; and the National Daily Direct closed $1.10 higher with a range of $57 to $74 for a weighted average of $70.43

Butcher hog prices at the Midwest cash markets are $2 lower at $48 in Dorchester, Wisconsin and Garnavillo, Iowa and are steady at $48 in Red Oak, Iowa.  At Illinois, slaughter sow prices were steady at $19 to $31 with moderate to good demand for moderate offerings.  Receipts were down on the week and the year.  Barrow and gilt prices were $1 higher at $40 to $49 with moderate demand for moderate offerings. 

Pork values closed firm – up $.68 at $76.48.  Picnics closed $3.95 higher.  Buts and hams were also higher.  Loins and bellies were steady.  Ribs dropped $.8.27.  Estimated hog slaughter is 463,000 head – down 15,000 on the week and up 3,000 on the year. 

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