Market News

Hog futures pressured by demand uncertainty

At the Chicago Mercantile Exchange, live cattle were mixed on spread adjustments and feeder cattle were lower, pressured by the week’s lower cash trade and the day’s higher move in corn.  February live cattle closed $.17 lower at $112.07 and April live cattle closed $.25 lower at $117.22.  January feeder cattle closed $.97 lower at $132.60 and March feeder cattle closed $.95 lower at $133.37. 

Some scattered cleanup business was reported on Thursday, but most of cattle country was quiet.  While there could still be some additional cleanup trade develop, it’s likely the bulk of the week’s business has wrapped up.  Asking prices for cattle left on showlists are around $111 to $112 live in the South and $175 dressed in the North.  Southern live deals this week have had a full range of $108 to $111, mostly $110 to $111, which is $1 to $2 lower than last week’s weighted averages.  Northern dressed deals ranged from $171 to $173, mostly $172 to $173, steady to $1 lower than Tuesday’s decline and $4 lower than last week’s weighted averages. 

At the Hub City Livestock Auction in South Dakota, compared to the most recent sale steers 550 to 650 pounds were mostly steady with instances of up to $2 higher on 550 to 600 pounds, 651 to 750 pounds were $1 to $3 lower, 751 to 850 pounds were mostly steady.  Heifers 550 to 700 pounds were steady to $2 lower, except 600 to 650 pounds were mostly steady.  The USDA says demand was good for the large calf offering featuring many packages and loads with best demand for light weight, green calves.  Flesh varied again from light to heavy.  Quality varied, mostly average to attractive.  The market was active.  Receipts were up from the most recent sale and up on the year.  Feeder supply included 70 percent steers and 65 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 553 to 594 pounds brought $152.50 to $169.75 and feeder steers 703 to 745 pounds brought $134.50 to $143.50.  Medium and Large 1 feeder heifers 507 to 549 pounds brought $143 to $157 and feeder heifers 553 to 590 pounds brought $139 to $147.25. 

Boxed beef closed sharply higher on good demand for moderate offerings.  Choice closed $2.37 higher at $213.37 and Select closed $2.01 higher at $201.07.  Estimated cattle slaughter is 120,000 head – up 1,000 on the week and down 3,000 on the year. 

Lean hog futures closed lower, pressured by the lower cash trade and long-term demand concerns.  February lean hogs closed $.55 lower at $66.30 and April lean hogs closed $.87 lower at $72.07.   

Cash hogs closed lower with a solid negotiated run.  Prices have struggled to move out of their current price pattern as the industry watches the supply and demand situation.  The availability of market-ready hogs is more than ample and daily slaughter runs continue to push higher.  While that’s keeping the supply chain moving, it’s also adding more pork to an already saturated market, at a time when global and domestic demand faces uncertainty.  Barrows and gilts at the National Daily Direct closed $.50 lower with a range of $46 to $57 with a weighted average of $53.89. The Iowa/Minnesota closed $.80 lower with a weighted average of $54.69 and the Western Corn Belt closed $.71 lower with a weighted average of $54.51.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $39.  At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $29 to $42.  Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $31 to $39.  Boars ranged from $15 to $20 and $4 to $10. 

Pork values closed sharply higher – up $2.42 higher at $80.55.  Bellies ended the day $16.22 higher.  Hams, loins, and ribs were firm to higher.  Butts and picnics were sharply lower. 

Estimated hog slaughter is 497,000 head – even on the week and down 1,000 on the year.