Market News

Hog futures higher on demand hopes

At the Chicago Mercantile Exchange, live cattle ended the day lower ahead of Friday’s cattle on feed report.  Markets were also pressured by the day’s steady to lower cash trade.  Feeder cattle were lower on the same factors as the live pit, with additional pressure from the day’s higher move in corn.  February live cattle closed $1.50 lower at $124.67 and April live cattle closed $2.60 lower at $124.17.  January feeder cattle closed $1.15 lower at $142.77 and March feeders closed $2.52 lower at $140.52. 

Another light round of direct cash cattle trade was reported.  Business in the North was at $198 to $199, steady to $1 lower than last week’s weighted average basis in Nebraska.  Some clean-up trade was reported in the South at $124, fully steady with this week’s previous business and last week’s averages.  Look for the remainder of this week’s trade to happen sometime on Friday.  

At the Hub City Livestock Auction in South Dakota, compared to last week steer calves 500 to 550 pounds were steady to $2 higher, 551 to 650 pounds steady to $2 lower, 651 to 700 pounds mostly steady and 751 to 800 pounds $1 to $3 lower.  Heifer calves 500 to 600 pounds and 651 to 750 pounds were mostly steady.  601 to 650 pounds and 751 to 800 pounds were $2 to $4 lower.  The USDA says demand was good to very good for the large offering of many packages and loads.  Demand remains very strong for calves which will be suitable for summer grass.  Quality varied, but mostly average to attractive.  Receipts of 4,560 head were up on the week and the year.  Feeder supply included 58 percent steers and 79 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 718 to 748 pounds brought $144 to $154 and feeder steers 754 to 798 pounds brought $140.50 to $154.  Medium and Large 1 feeder heifers 653 to 695 pounds brought $133 to $142 and feeder heifers 703 to 732 pounds brought $131.50 to $138.50. 

Boxed beef closed mixed – firm on Choice and lower on Select on light to moderate demand and offerings.  Choice closed $.36 higher at $215.32 and Select closed $.82 lower at $211.20.  The Choice/Select spread is $4.12.  Estimated cattle slaughter is 122,000 head – even on the week and up 5,000 on the year. 

Lean hog futures ended the day higher with support form higher cash trade and wholesale values during the session and demand optimism.  February lean hogs closed $.95 higher at $68.50 and April lean hogs closed $.82 higher at $75.35. 

Cash hogs ended the day mixed with fairly strong negotiated purchases.  Supply and demand continue to be the driving force behind this market.  While the industry is hopeful demand for US pork will continue to grow at a significant rate on the global market, heavy supplies are limiting the markets ability to consistently move prices higher.  Once demand is realized it is likely pork prices will start moving in a positive direction. Barrows and gilts at the National Daily Direct closed $.15 higher with a base range of $47 to $54.50 for a weighted average of $52.07; the Iowa/Southern Minnesota closed $.39 lower for a weighted average of $51.67; the Western Corn Belt closed $.54 lower for a weighted average of $51.50; the Eastern Corn Belt closed $1.07 higher for a weighted average of $52.94.    

Butcher hog prices at the Midwest Cash Markets are $2 higher at $40.  At Illinois, slaughter sow prices were firm with moderate demand for moderate to heavy offerings at $12 to $20.  Barrow and gilt prices were firm with moderate demand for moderate offerings at $28 to $36. 

Pork values closed steady – up $.10 at $78.84.  Bellies and loins were higher.  Butts were steady.  Ribs, picnics, and hams were lower to sharply lower.  Estimated hog slaughter is 497,000 head – even on the week and up 24,000 on the year.  Wednesday hog slaughter has been revised to 493,000 head. 

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