Market News

Hog futures mixed heading into the end of the week

At the Chicago Mercantile Exchange, live cattle closed mostly lower on spread adjustments and feeder cattle were lower on follow-through selling and the modestly higher move in corn.  October live cattle closed $.05 higher at $106.77 and December live cattle closed $.62 lower at $111.32.  September feeder cattle closed $.5 lower at $139.92 and October feeder cattle closed $.97 lower at $141.45. 

A light direct cash cattle trade took place in the North on Thursday.  Deals have been reported in Nebraska and Colorado at $103.50 live, up $2.50 from last week, and at $163 dressed, which is $2 higher than last week’s weighted average basis in Nebraska.  Look for asking prices to be restated on Friday around $105 live in the South and $165 plus dressed in the North.  There was a light to moderate trade that took place in the South on Wednesday with deals at mostly $103, which was $2 higher than last week’s weighted averages. 

At the Springfield Livestock Marketing Center in Missouri, compared to last week steers and heifers were steady to $3 lower, except 550 to 650-pound heifers, which were steady to $3 higher.  The USDA says demand and supply were moderate.  Receipts were up slightly on the week and the year.  Feeder supply included 47 percent steers and 42 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 585 to 594 pounds brought $149 to $152.75 and feeder steers 665 to 689 pounds brought $138 to $149.75.  Medium and Large 1 feeder heifers 551 to 595 pounds brought $133.50 to $143 and feeder heifers 601 to 642 pounds brought $134 to $141.50. 

Boxed beef closed weak to lower with light demand for moderate offerings.  Choice is down $.33 at $215.05 and Select is $1.12 lower at $203.39.  The Choice/Select spread is $11.66. Estimated cattle slaughter is 119,000 head- even on the week and up 4,000 on the year. 

Lean hog futures ended the day mixed on spread trade with support from the sharply higher wholesale values during the session.  October lean hogs closed $1.30 higher at $66.52 and December lean hogs closed $1.65 higher at $63.62. 

Cash hogs closed higher with strong negotiated purchases.  Packers bid up Thursday afternoon to move their desired numbers.  While there is optimism surrounding the demand picture – this week’s Export Sales Report and the potential bump in global demand following Germany’s finding of African swine fever in wild boars, heavy supplies are still pressuring prices.  Packers are moving big numbers and that continues to add to an already saturated market. Barrows and gilts the National Daily Direct closed $1.60 higher with a base range of $52 to $67 for a weighted average of $62.50; the Iowa/Minnesota closed $3.03 higher for a weighted average of $64.44; the Western Corn Belt closed $2.25 higher for a weighted average of $64.35.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $28.  At Illinois, slaughter sow prices were steady with good demand for moderate to heavy offerings at $11 to $23.  Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $35 to $41.  Boars ranged from $1 to $3.   

Pork values close higher – up $3.89 at $87.03.  Hams, butts, picnics, and bellies all closed sharply higher.  Ribs and loins were firm to higher. Estimated hog slaughter is 484,000 head – down 1,000 on the week and the year.