Market News

Hog futures rebound to close out the week

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower ahead of Friday’s Cattle on Feed report.  Feeder cattle had additional pressure from the modestly higher move in corn.  October live cattle closed $.45 lower at $107.57 and December live cattle closed $.87 lower at $111.50.  October feeder cattle closed $1.95 lower at $140.32 and November feeder cattle closed $2.20 lower at $140.15. 

It was a pretty quiet end to the week following Thursday’s moderate to active trade in most areas.  There was some cleanup trade that took place on Friday at mostly steady money with the week’s previous business.  Southern live deals were marked at mostly $105, $2 higher than the prior week’s weighted averages.  Northern dressed business was at mostly $165, roughly $2 higher than the prior week’s weighted average basis in Nebraska. 

In Missouri this past week, steers under 650 pounds and heifers under 600 pounds were unevenly steady to $2 lower.  Heavier weight feeders sold steady to $3 higher.  The USDA says supply was moderate and demand was moderate to good.  Receipts were up on the week and the year.  Feeder supply included 52 percent steers and 52 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 648 pounds brought $125 to $161.75 and feeder steers 750 to 798 pounds brought $122 to $154.  Medium and Large 1 feeder heifers 600 to 649 pounds brought $119 to $152 and feeder heifers 700 to 746 pounds brought $105 to $145.50. 

In South Dakota, Alfalfa and grass hay were steady.  The USDA says demand was moderate for all types of hay as dairies are starting to show more resistance to the price of alfalfa, which is weakening the trade.  Feedlots that buy grass hay to start calves on feed haven’t really entered the market yet, which is keeping the grass hay market down.  Dry, drought conditions remain.  Alfalfa, supreme, large squares (3×4) brought $200.  Alfalfa, good, large rounds brought $140.  Alfalfa/Orchard mix, good, large rounds brought $120.  Grass, good, large rounds brought $100.  Millet, good, large rounds brought $50. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice is $1.86 higher at $219.34 and Select is $.76 lower at $206.98. Estimated cattle slaughter is 112,000 head – up 1,000 on the week and down 2,000 on the year.  Saturday’s estimated kill is 57,000 head – up 2,000 on the week and down 10,000 on the year. 

Lean hog futures ended the day higher on support from the higher wholesale values during the session, the higher cash trade, and oversold signals.  October lean hogs closed $2.27 higher at $71.75 and December lean hogs closed $1.15 higher at $64.42. 

Cash hogs closed steady to higher with solid negotiated numbers.  The industry expects demand for US pork is to increase as the global pork market is reshuffling following the finding of African swine fever in wild boars in Germany.  That’s helping provide some price support.  However, heavy supplies make it very difficult for prices to find long-term price strength.  And if any disruption to the demand picture occurred it could send prices tumbling. Barrows and gilts at the National Daily Direct closed $.14 higher with a base range of $60 to $69 for an average of $64.74; the Iowa/Minnesota closed $1.47 higher for an average of $65.12; the Western Corn Belt closed $1.16 higher for an average of $64.75; the Eastern Corn Belt closed $.28 lower for a weighted average of $64.73. 

The USDA’s Feeder Pig Report has early-weaned pigs $2 per head higher and all feeder pigs $7 per head higher.  Demand was moderate for moderate offerings and receipts included 37% formulated prices.  Total composite formula range is $28.22 to $44 for an average of $38.68.  Total Composite cash range was $20.50 to $35 for an average of $27.26.  The Total Composite weighted average for all early-weaned pigs was $32.43 and the average for all feeder pigs is $41.47. 

Butcher hog prices at the Midwest cash markets are higher at $38. 

Pork values closed weak – down $.71 at $91.32.  Hams were sharply lower.  Bellies were lower.  Picnics were steady.  Ribs, loins, and butts were higher to sharply higher.  Estimated hog slaughter is 478,000 head – up 19,000 on the week and down 4,000 on the year.  Saturday’s estimated kill is 230,000 head – up 37,000 on the week and down 55,000 on the year.  Thursday’s hog slaughter has been revised to 469,000 head.