Market News

Hog futures higher to end the week

At the Chicago Mercantile Exchange, live cattle ended the day mixed ahead of the USDA’s On Feed numbers.  Feeders were lower, pressured by the higher corn.  August live cattle closed $.50 lower at $133.37 and October live cattle closed $.25 lower at $138.75.  August feeders closed $2.35 lower at $172.50 and September feeders closed $1.77 lower at $175.07. 

It’s a quiet end to the week for direct cash cattle trade activity following multiple days light to moderate business.  Southern live deals were marked at mostly $138, generally steady (in Texas) to $2 lower (in Kansas) than the previous week’s weighted averages.  It was another week of wide ranges for business in the North with deals anywhere from $230 to $240 dressed, mostly $234 which is about $4 higher than the prior week’s weighted average basis in Nebraska. 

In Texas last week, feeder steers and heifers sold $2 to $6 higher.  The USDA says trade activity was moderate to good, on good demand.  Receipts were down slightly on the week and down on the year.  Feeder supply included 42% steers and 62% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 838 pounds brought $163.50 and feeder steers 860 pounds brought $158. Medium and Large 1 feeder heifers 705 to 742 pounds brought $149 to $154 and feeder heifers 816 to 826 brought $141.50 to $145. 

In Missouri, haying is in full swing around the state and is a little over half done.  The USDA says that’s in line with the five-year average.  Hay prices are steady to firm and supply and demand are moderate.  Alfalfa, supreme, medium squares brought $225 to $275.  Alfalfa, supreme, small squares brought $8 to $12.  Alfalfa, premium, medium squares brought $175 to $225.  Alfalfa, good, large rounds brought $120 to $180.  Alfalfa, good, small squares brought $5 to $9.  Alfalfa, fair, large rounds brought $100 to $125.  Alfalfa/grass mix, good/premium, small squares brought $5 to $9.  Mixed grass, good/premium, large rounds brought $80 to $140.  Mixed grass, fair/good, large rounds brought $60 to $100. 

Boxed beef ended the day higher on solid demand for light offerings.  Choice closed $.32 higher at $264.98 and Select closed $.08 higher at $245.02.  The Choice/Select spread is $19.96. Estimated cattle slaughter 122,000 head – down 2,000 on the week and up 5,000 on the year.  Saturday’s estimated kill is 46,000 head – down 2,000 on the week and down 24,000 on the year. 

Lean hog futures closed higher on oversold and higher cash and wholesale business during the session.  July lean hogs closed $2.37 higher at $110.92 and August lean hogs closed $3.10 higher at $106.77. 

Cash hogs closed mostly lower with a solid negotiated run. Processors started the day a little more aggressive in their procurement efforts and bid up to move their desired numbers, but backed off in the afternoon.  Demand for US pork on the global market and domestically has been strong, helping provide some price support.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.59 lower with a base range of $112 to $126 and a weighted average of $120.23; the Iowa/Minnesota closed $.15 lower with a weighted average of $124.24; the Western Corn Belt was unchanged with a weighted average of $124.24.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s weekly Feeder Pigs Report, early-weaned pigs were steady to week and all feeder pigs were $1 to $2 per head lower.  Demand was light on a moderate offering.  The Total Composite cash range for early-weaned pigs was $32 to $50.50 and a weighted average of $39.32.  The Total Composite formula range for early-weaned pigs was $28.41 to $49.74 and a weighted average of $40.73.  The weighted average for all early-weaned pigs was $40.29 and the weighted average all feeder pigs was $66.87.

Butcher hog prices at the Midwest cash markets are $1 higher at $77. At Illinois, slaughter sow prices were $1 lower with light demand for light offerings at $39 to $51.  Barrows and gilts were steady with light demand for light offerings at $71 to $80.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values closed higher – up $2.47 at $112.24.  Bellies were sharply higher.  Hams, ribs, picnics, and butts were steady to higher.  Loins were lower.