Market News
Hog futures pressured by demand uncertainty
At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher watching direct cash business develop. February live cattle closed $.37 higher at $153.92 and April live cattle closed $.42 higher at $158.05. January feeder cattle closed $2.57 higher at $183.47 and March feeder cattle closed $1.80 higher at $185.05.
There was another light, scattered round of direct cash cattle trade on Thursday. Live deals in the South were at $154, $1 lower than the prior week’s weighted averages. Dressed deals were at $247 in the North. Asking prices are holding firm at $156 to $157 live in the South and $249 dressed in the North. Look for additional business to develop before the end of the day Friday. So far this week, deals in the North were at $247 dressed, $2 below the previous week’s weighted averages.
At the Huss Livestock Market in Nebraska, compared to last week lightweight steers calves were sharply higher. Steers up to 700 pounds were $3 to $6 higher, steers 700 pounds were $2 higher, and steers over 750 pounds were $2 to $5 lower. Heifer calves and feeder cattle sold unevenly steady throughout the day. The USDA says there was a very large crowd on hand and online bidding was active. Flesh was light to moderate. Receipts were up on the week and the year. Feeder supply included 62% steers and 79% of the offering was over 600 pounds. Medium and Large 1 feeder steers 756 to 788 pounds brought $174.50 to $189.75 and feeder steers 800 to 818 pounds brought $179 to $185.25. Medium and Large 1 feeder heifers 664 to 699 pounds brought $171 to $173.50 and feeder heifers 770 to 799 pounds brought $170.50 to $174.75.
Boxed beef closed mixed on light to moderate demand for moderate offerings. Choice closed $1.68 lower at $247.28 and Select closed $.78 higher at $220.55. The Choice/Select spread is $26.73. Estimated cattle slaughter was 126,000 head – down 2,000 on the week and up 4,000 on the year.
Lean hog futures ended the day lower, pressured by the weak cash trade and long-term demand uncertainty. February lean hogs closed $1.95 lower at $84.70 and April lean hogs closed $2.07 lower at $90.75.
Cash hogs closed sharply lower with a light negotiated run. Processors backed off their procurement efforts following Wednesday’s huge run at much higher prices. The industry continues to monitor the availability of market-ready hogs and the demand picture. Should a slow global economy put pressure on demand, the pork industry could start to see prices decline for a significant period of time. Barrows and gilts at the National Daily Direct closed $3.57 lower with a base range of $80 to $85.50 with a weighted average of $81.11; the Iowa/Minnesota closed $4.60 lower with a weighted average of $81.30; the Western Corn Belt closed $4.48 lower with a weighted average of $81.31. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $58 and $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $42 to $54. Barrows and gilts were steady with moderate demand for moderate offerings at $56 to $66. Boars ranged from $15 to $20 and $10 to $13.
Pork values ended the day firm, up $.52 at $94.97. Bellies were sharply higher. Estimated hog slaughter was 490,000 head – down 2,000 on the week and up 18,000 on the year. Wednesday’s hog slaughter has been revised to 484,000 head.
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