Market News

Hog futures lower on supply concerns

At the Chicago Mercantile Exchange, live cattle ended the day mixed to mostly lower waiting for direct cash business and this week’s reports. Feeder cattle ended the day higher on position squaring ahead of this week’s reports.  December live cattle closed $.17 lower at $113.70 and February contracts closed $.12 lower at $119.10.  November feeder cattle closed $.65 higher at $143.50 and January contracts closed $.70 higher at $139.80. 

Direct cash cattle trade activity is at a standstill again.  There were a few Southern asking prices noted at $110+ live – the rest of cattle country remains quiet.  No token bids have been floated yet.  This week’s Fed Cattle Exchange is likely to be a non-starter with just 231 head on offer.  Significant trade volume will be delayed until sometime midweek or later. 

At the Joplin Regional Stockyards in Missouri, receipts are down on the week and the year.  Compared to last week, steer and heifer calves are $3 to $7 lower, yearlings were steady.  The USDA says demand was moderate to light for unweaned calves, moderate to good for long-time weaned calves and yearlings.  The supply was moderate.  Feeder supply included 54 percent steers and 50 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 652 to 683 pounds brought $140 to $155 and feeder steers 706 to 746 pounds brought $143.50 to $155.  Medium and Large 1 feeder heifers 502 to 542 pounds brought $127 to $143 and feeder heifers 652 to 687 pounds brought $132 to $145. 

Boxed beef ended the day higher to sharply higher on moderate to good demand and offerings.  Choice up $.80 at $220.93 and Select closed $3.64 higher at $198.08.  The Choice/Select spread closed at $22.85.    Estimated cattle slaughter is 119,000 head – up 1,000 on the week and down 1,000 on the year. 

Lean hog futures ended the day lower on supply and demand concerns and lower wholesale values during the session.  December lean hogs closed $2.32 lower at $65.50 and February lean hogs closed $1.90 lower at $76.27. 

Cash hogs ended the day weak to lower with another big run of negotiated purchase totals.  The industry is keeping a close eye on the supply and demand picture – especially as the slaughter runs continue to hit record totals daily.  There is more pork being added to the market at a time when there are already record supplies.  There’s massive demand potential as China and the rest of Asia continues to struggle with African Swine Fever and a declining hog herd.  But, until that demand potential is realized, the cash market will continue to be slow to move higher. 

Barrows and gilts at the Iowa/Southern Minnesota closed $1.04 lower for a weighted average of $56.35; the Western Corn Belt closed $1.02 lower for a weighted average of $56.29; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.85 lower with a base range of $51 to $58 for a weighted average of $56.26. 

Butcher hog prices at the Midwest cash markets are steady to $2 lower at $42 to $44.  At Illinois, slaughter sow prices were $2 to $3 higher at $28 to $40 with very good demand for moderate to heavy offerings.  Barrow and gilt prices were firm at $36 to $41 with good demand for moderate offerings. 

Pork values closed sharply lower – down $2.43 at $76.10.  Bellies dropped nearly $8 today.  Loins were sharply lower.  Hams and ribs were lower.  Butts were steady and picnics closed higher.  Estimated hog slaughter is 492,000 head – up 2,000 on the week and up 18,000 on the year.