Market News

Hog futures drop on demand concerns

At the Chicago Mercantile Exchange, live cattle futures ended the day higher on strong wholesale values and expectations of improved cash business after the markets tumbled last week.  Feeder cattle futures closed higher on the same factors.  October live cattle closed $.22 higher at $100.22 and December live cattle closed $.47 higher at $105.30.  September feeder cattle closed $1.57 higher at $135.30 and October feeder cattle closed $.90 higher at $134.55.    

Another quiet day for direct cash cattle trade activity.  Asking prices have been floated at $108 live in the South and $178 plus dressed in the North.  Bids have yet to surface.  There were just a handful of deals reported in parts of the north at $175 dressed – but that’s not near enough to establish a trend.  It looks like a standoff is underway and we won’t see significant trade volume develop until late in the day Thursday or into Friday. 

At the McAlester Union Livestock Auction in Oklahoma, receipts were down on the week and the year.  Compared to last week, steer calves were $5 to $7 lower.  Heifer calves were $2 to $7 higher.  The USDA says demand was light to moderate and quality was average.  Feeder supply included 35 percent steers and 17 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 450 to 495 pounds brought $145 to $158 and feeder steers 654 to 693 pounds brought $125 to $139.  Medium and Large 1 feeder heifers 504 to 549 pounds brought $123 to $137 and feeder heifers 550 to 598 pounds brought $128 to $141. 

Boxed beef closed steady on Choice and higher on Select on light to moderate demand and offerings.  Choice closed $.04 higher at $241.74 and Select closed $1.43 higher at $215.60.  The Choice/Select spread closed at $26.04.  Estimated cattle slaughter is 116,000 head – even on the week and down 1,000 on the year. 

Lean hog futures closed mostly lower on profit taking, the day’s sharply lower cash trade, weak wholesale values during the session, and concerns about the ongoing rocky trade talks with China. October lean hogs closed $1.67 lower at $63.30 and December lean hogs closed $1.50 lower at $62.67. 

Cash hogs closed mixed with solid negotiated purchase totals.  The heavy supply has proved to be too much for the cash hog market right now – especially with the demand uncertainty.  While there is expected to be a global protein shortage as China and other countries continue to battle African Swine Fever, a significant increase in demand has yet to be realized and until that happens prices will continue to struggle to move in a positive direction.  Barrows and gilts at the Iowa/Southern Minnesota closed $2.47 lower for a weighted average of $67.96; the Western Corn Belt closed $2.48 lower for a weighted average of $67.62; the Eastern Corn Belt closed $.30 higher for a weighted average of $67.76; and the National Daily Direct closed $1.41 lower for a base range of $58 to $71.50 for a weighted average of $67.66. 

Butcher hogs at the Midwest cash markets are steady in Dorchester, WI and Garnavillo, Iowa at $50 and $56.  Prices are lower in Red Oak, Iowa at $46. At Illinois, slaughter sow prices are $2 lower at $28 to $43 with moderate demand for heavy offerings.  Barrow and gilt prices were weak at $41 to $49 with moderate demand for moderate offerings. 

Pork values closed sharply lower – down $2.67 at $81.24.  Bellies dropped $11.54 today.  Hams and loins were lower.  Ribs were weak.  Picnics were steady and butts closed higher.  Estimated hog slaughter is 482,000 head – down 1,000 on the week and up 9,000 on the year.