Market News

Hog futures lower on profit-taking

At the Chicago Mercantile Exchange, live cattle closed mostly lower, waiting for the bulk of this week’s cash business to develop.  Feeder cattle were lower on profit-taking.  August live cattle closed $.10 lower at $100.00 and October contracts closed $.25 higher at $104.17.  August feeder cattle closed $1.22 lower at $134.92 and September feeder cattle closed $.90 lower at $136.32.

There was very light direct cash cattle trade that took place in most areas on Tuesday.  Dressed deals in Nebraska were at $157, that’s $3 higher than last week’s weighted averages.  Live deals in the South were at $94 to $95, steady to $1 higher than last week’s weighted averages.  A handful of deals were reported on Monday in Kansas at $93 to $95 and in Nebraska at $160.  If this week’s business matches the recent trend, it’s likely there will be a light to moderate trade just about every day. 

At the Callaway Livestock Center in Missouri, compared to last week steer calves 450 to 550 pounds were mostly steady to spots of $2 lower.  Steers 550 to 750 pounds were fully steady to firm.  Feeder heifers were mostly steady with a pot-load of 720 pounds heifers trading $2 higher.  The USDA says demand was moderate to good with moderate supply.  The bulk of the sales were on feeders over 600 pounds, with a good quality offering of yearlings selling with very good demand.  Receipts were down on the week.  Feeder supply included 58 percent steers and 52 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 610 to 646 pounds brought $146 to $157 and feeder steers 879 to 891 brought $128.35 to $128.60.  Medium and Large 1 feeder heifers 453 to 495 pounds brought $146 to $156 and feeder heifers 610 pounds brought $137.

Boxed beef closed steady with moderate demand for light to moderate offerings.  Choice closed $.16 lower at $205.30 and Select closed $.13 lower at $196.84.  The Choice/Select spread closed at $8.46.  Estimated cattle slaughter is 119,000 head – down 2,000 on the week and down 1,000 on the year.  Monday’s cattle slaughter has been revised to 115,000 head. 

Lean hog futures ended the day lower on profit-taking and technical selling.  July lean hogs closed $.42 lower at $44.52 and August lean hogs closed $.40 lower at $48.87. 

Cash hogs closed firm to higher with very large negotiated runs.  Packers were more aggressive in their procurement efforts, likely making up for the holiday on Saturday.  Supply and demand remain the driving force behind this market.  There is optimism demand for US pork will continue to push higher both globally and domestically.  That’s good news as supplies of market-ready hogs are more than ample and daily slaughter capacity continues to near pre-COVID-19 levels.  Barrows and gilts at the National Daily Direct closed $.76 higher with a base range of $24 to $30.18 for a weighted average of $29.28; the Iowa/Minnesota closed $2.06 higher for a weighted average of $29.52; the Western Corn Belt closed $2.02 higher for a weighted average of $29.48; the Eastern Corn Belt had no comparison but a weighted average of $29.22. 

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

Pork values closed $1.74 lower at $62.60.  Hams closed more than $9 lower.  Ribs and picnics were weak to lower.  Bellies, loins, and butts were firm to higher.  Estimated hog slaughter is 469,000 head – even on the week and down 8,000 on the year.