Market News

Hog futures higher on an oversold bounce

At the Chicago Mercantile Exchange, live cattle ended the day mostly lower on position squaring ahead of this week’s USDA report.  Feeder cattle were lower on the same factors with additional pressure from the day’s mostly steady to firm move in corn.  December live cattle closed $.02 higher at $119.32 and February live cattle closed $.42 lower at $125.05.  November feeder cattle closed $1.07 lower at $145.52 and January feeder cattle closed $1.47 lower at $142.60. 

It was a fairly quiet day for direct cash cattle trade with a light trade reported in parts of the North. Dressed deals in Nebraska, were generally steady with Wednesday’s business.  Bids are at $115 to $117 live and $184 dressed.  Asking prices for cattle left on showlists are around $117 to $118 live in the South and $185 to $188 dressed in the North.  Earlier this week live deals in the south were at mostly $116, $1 higher than last week’s weighted averages.  Dressed deals were reported in parts of the North at mostly $184, $2 higher than last week’s weighted average basis in Nebraska. 

At the Hub City Livestock Auction in South Dakota, compared to last week steer calves 400 to 550 pounds were $3 to $6 higher, 551 to 600 pounds and 651 to 700 pounds were $4 to $7 lower.  Heifer calves 450 to 650 pounds were $2 to $5 lower.  No comparison was available for yearling steers and heifers.  The USDA says demand was good to very good for several strings and many loads of yearling steers and heifers on offer.  Flesh was mostly moderate to moderate plus.  There was a moderate to good demand for the day’s calf offering with many attractive loads and packages available.  Receipts of 7,771 head are up on the week.  Feeder supply included 52 percent steers and 58 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 549 pounds brought $155 to $171.50 and feeder steers 600 to 649 pounds brought $146 to $155.  Medium and Large 1 feeder heifers 658 to 681 pounds brought $134.50 to $142.50 and feeder heifers 851 to 897 pounds brought $135.25 to $143.25. 

Boxed beef ended the day lower to sharply lower on light demand and moderate offerings.  Choice closed $3.35 lower at $234.86 and Select closed $.91 lower at $213.86.  The Choice/Select spread closed at $21.  Estimated cattle slaughter is 118,000 head – even on the week.

Lean hog futures ended the day higher contracts were oversold and due for a bounce.  The Weekly Export Sales report was also supportive.  December lean hogs closed $.20 higher at $60.65 and February lean hogs closed $.67 higher at $67.45. 

Cash hogs closed steady with moderate negotiated purchase numbers.  The cash market continues to hold its own.  While it is optimistic demand for US pork will see a significant bump on the global market as the global protein supply has been disrupted from the continued spread of African Swine Fever, the heavy supplies are limiting any price move.  Pork production has jumped more than 6 percent on the year.  And until demand increases are realized, cash prices are going to find it difficult to move higher.   Barrows and gilts at the Iowa/Southern Minnesota closed $.12 higher for a weighted average of $42.29; the Western Corn Belt closed $.06 higher for a weighted average of $42.30; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.20 higher with a base range of $40 to $43.03 for a weighted average of $42.53. 

Pork values closed sharply lower – down $5.11 at $81.57.  Bellies dropped almost $15 and hams closed almost $9 lower.  Ribs, loins, and picnics were weak to lower.  Butts closed higher.  Estimated hog slaughter is 484,000 head – down 4,000 on the week.