Market News

Hog futures lower following Hogs and Pigs report

At the Chicago Mercantile Exchange, live cattle ended the day mostly lower and feeder cattle were fully lower, both pressured by the week’s lower cash trade and wholesale business.  August live cattle closed $.05 lower at $96.02 and October live cattle closed $.17 lower at $99.47.  August feeder cattle closed $.65 lower at $132.60 and September feeder cattle closed $.72 lower at $133.77. 

Direct cash cattle trade ended the week quietly.  No bids or asking prices were renewed on Friday.  The week saw a moderate to good trade that developed in the North with dressed deals ranging from $152 to $156.  Light to moderate business in the South had a full range of $93 to $97. 

In Missouri this past week, compared to last week steers under 500 pounds were steady to $3 lower, steers over 500 pounds were steady to $3 higher.  Heifers 500 to 700 pounds were steady to $2 higher, lighter and heavier weights were mostly steady to $1 lower.  The supply of feeders was moderate, and the demand was good.  There were also some nice loads of yearlings which were met with good demand.  Receipts were up on the week and down on the year.  Feeder supply included 55 percent steers and 48 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $130 to $160.75 and feeder steers 700 to 748 pounds brought $123 to $149.75.  Medium and Large 1 feeder heifers 500 to 548 pounds brought $122.50 to $150 and feeder heifers 602 to 649 pounds brought $115 to $143.50. 

In Missouri, hay cutting is running ahead of the five-year average.  Hay movement has been mostly slow, but the USDA report there is some hay being sold out of the field around the state as farmers are bailing more than they will need for winter feeding.  Hay prices are mostly steady, and the supply is moderate to heavy with a light demand.  Supreme quality alfalfa brought $180 to $200, small squares brought $7 to $9 per bale.  Premium quality alfalfa brought $160 to $180. Good quality alfalfa brought $120 to $150, small squares brought $5 to $7 per bale.  Good quality mixed grass hay brought $80 to $120, small squares brought $6 to $8 per bale.  Fair to good quality mixed grass hay brought $60 to $80, small squares brought $3 to $6 per bale. 

Boxed beef closed lower with light to moderate demand for moderate offerings.  Choice closed $1.09 lower at $207.17 and Select closed $1.08 lower at $198.85.  The Choice/Select spread is $8.32. Estimated cattle slaughter is 119,000 head – even on the week and down 2,000 on the year.  Saturday’s estimated kill is 82,000 head – up 23,000 on the week and the year. 

Lean hog futures ended the day lower following Thursday’s Hogs and Pigs report.  July lean hogs closed $1.65 lower at $45.27 and August lean hogs closed $3.20 lower at $48.12. 

Cash hogs closed steady with moderate negotiated numbers.  The latest hogs and pigs report showed supplies are 5 percent above year-ago levels.  Demand uncertainty continues and that, combined with the backlog of hogs in the supply chain is adding additional pressure to the price picture.  Which means the supply and demand situation will continue to drive the market.  There’s also growing concern about China’s commitment to meet its Phase One trade purchase obligations, which adds even more volatility to the market.  Barrows and gilts at the National Daily Direct are $.18 lower with a base range of $24 to $30 for a weighted average of $28.48; the Iowa/Minnesota closed $.16 lower for a weighted average of $28.96; the Western Corn Belt is $.02 higher for a weighted average of $28.96.  The Eastern Corn Belt was not reported due to confidentiality. 

The USDA’s Feeder Pig Report had all early-weaned pigs and all feeder pigs steady to week.  Demand was light for moderate to heavy offerings and receipts included 39 percent formulated prices.  The total composite formula range for early-weaned pigs was $9.89 to $40.50 for an average of $28.33.  The Total Composite cash range was $1 to $13 for an average of $6.07.  The Total Composite Weighted average for all early-weaned pigs was $15.21 and the average for all feeder pigs was $14.25. 

Butcher hog prices at the Midwest cash market are steady at $20.  At Illinois, slaughter sow prices were firm with moderate to good demand for moderate offerings at $9 to $20.  Barrow and gilt prices were firm with moderate to good demand for moderate to heavy offerings at $12 to $20.  Boars ranged from $2 to $5. 

Pork values closed firm – up $.90 at $65.95.  Loins and ribs were sharply higher.  Hams were weak.  Butts, picnics, and bellies were all lower. 

Estimated hog slaughter is 472,000 head, up 15,000 on the week and up 19,000 on the year.  Saturday’s estimated kill is 323,000 head – up 33,000 on the week and up 283,000 on the year.