Market News

Lean hogs lower as China talks end early

At the Chicago Mercantile Exchange, live cattle were lower waiting for the rest of the week’s direct business and waiting for the on-feed numbers.  Feeders are mixed, with nearby contracts higher on the day’s lower move in corn.  October live cattle closed $.45 lower at $99.35 and December live cattle closed $.67 lower at $105.15.  October feeder cattle closed $.27 higher at $139.20 and November feeder cattle closed $.22 lower at $137.02.  

Direct cash cattle trade activity is finishing up.  A large string has been reported in Nebraska at $103 live, which is about $3 higher than the prior week’s weighted averages.  Heading into the end of the day, bids are at $101 live and $162 dressed.  Asking prices are holding at $104 plus in the South and $164 plus in the North.  

In Missouri this past week, receipts were down on the week and the year.  Compared to last week, feeder steers and heifers sold steady to $5 higher.  The supply of feeders was light to moderate.  Many producers have held off marketing cattle following the disruption in the industry since the processing plant fire over a month ago.  Good pasture conditions and the availability of green grass has made this an easier decisions.  Feedlot sales so far this week did gain a bit of ground with live sales reported at $100 to $101 and dressed deals at $160 to $162.  Feeder supply included 52 percent steers and 51 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $124 to $156.85 and feeder steers 700 to 748 pounds brought $121 to $154.75.  Medium and Large 1 feeder heifers 550 to 598 pounds brought $118 to $152.50 and feeder heifers 600 to 648 pounds brought $110 to $148.25.  

At the South Dakota hay market, alfalfa and grass was mostly steady with reported sales still limited.  The USDA says demand was good for high quality alfalfa hay, especially from out of state buyers and demand was only moderate for lower quality hay as supply is more plentiful due to the persistent summer rains.  In East River, Alfalfa premium large squares brought $230.00 and small squares brought $6.50 per bale.  Fair to good large squares brought $165, fair large rounds $120 to $130.  Sun-cured alfalfa pellets 15 percent protein brought $245 and 17 percent protein sold for $250.  Alfalfa meal 17 percent brought $255.  Grass, good large rounds brought $120 and fair large rounds sold for $80 to $110.  Alfalfa/Grass Mix, premium large squares were $225, fair large squares $135.  There were no reported sales in West River.

Boxed beef is closed weak to lower on light to moderate demand and offerings.  Choice closed $1.20 lower at $216.97 and Select closed $.44 lower at $191.72.  Estimated cattle slaughter 116,000 head – up 7,000 on the week and down 3,000 on the year.  Saturday’s estimated kill is 75,000, that’s up 17,000 on the week and 10,000 on the year.  

Lean hog futures ended the day lower on the news that Chinese negotiators left ahead of what was expected to be a weekend visit and the President’s claim that he didn’t need a trade deal before the 2020 election.  October lean hogs closed $1.05 lower at $60.35 and December lean hogs closed $1.70 lower at $66.25.  

Cash hogs are weak with very large negotiated purchase numbers.  Supply and demand continue to drive the market. Packers haven’t had to work hard to move their desired numbers, especially with the ample supply of ready barrows and gilts and the continued large slaughter runs add more pork to an already saturated market.  Optimism that demand for US pork on the global market will improve significantly continues, but hog prices are having a difficult time moving higher as we’ve yet to see .  Barrows and gilts at the Iowa/Southern Minnesota closed $.85 lower for a weighted average of $44.39; the Western Corn Belt is $.80 lower for a weighted average of $44.34; the Eastern Corn Belt had no comparison but a weighted average of $44.02; and the National Daily Direct is $.22 lower with a base range of $39 to $45 for a weighted average of $44.14.  

According the USDA, early weaned pigs were $5 per head higher and all feeder pigs are $1 per head higher.  Demand was moderate for moderate offerings and receipts included 34 percent formulated prices.  Total Composite formula range was $28.61 to $45.63 for a weighted average of $40.50 and Total Composite cash range is $15 to $39 for an average of $31.13. The average for all early weaned pigs is $34.49 and the average for all feeder pigs is $39.71.  

Butcher hog prices at the Midwest cash markets are steady at $30.  At Illinois, slaughter sow prices were steady at $15 to $26 with light to moderate demand for light to moderate offerings.  Receipts were steady on the week and down on the year.  Barrow and gilt prices were steady at $24 to $31 with moderate demand for moderate offerings.  

Pork values closed steady – up $.13 at $69.15.  Bellies closed $4.89 higher, while ribs closed nearly $7 lower.  Loins were weak, picnics were firm and hams were steady.  Estimated hog slaughter is 446,000 head, down 30,000 on the week and up 7,000 on the year.  Saturday’s estimated kills is 195,000 head – up 3,000 on the week and up 8,000 on the year.