Market News

Hog futures supported by cash and wholesale business

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, watching direct cash business develop.  April live cattle closed $.42 higher at $123.15 and June live cattle closed $.65 higher at $125.27. April feeder cattle closed $1.15 higher at $147.62 and May feeder cattle closed $.90 higher at $152.67. 

A light to moderate direct cash cattle trade took on Wednesday. Live deals throughout cattle country were at $120 to $122, mostly $120.  Deals in Texas were $3.50 higher than last week’s weighted averages, deals in Kansas were $3 higher, and in Nebraska, that’s anywhere from $1.50 to $3.50 higher.  Asking prices held at $122 plus live in the South and $195 to $197 dressed in the North.  Today’s Fed Cattle Exchange could be the boost the market needed.  This week’s sale saw the majority of the offering sell with many over reserve pricing.  There were 4,926 head listed with 3,489 head that sold anywhere from $120 to $122.75. 

At the Kingsville Livestock Auction in Missouri, compared to last week steers under 650 pounds were steady to firm and heavier weights were $5 to $8 higher.  Heifers were steady to $6 higher with the gain mostly on yearling heifers weighing 600 to 700 pounds.  The USDA says the quality and condition of most of the cattle was attractive and demand was good to very good.  Supply was moderate and there were more new crop calves are showing up.  Receipts were down on the week and up on the year.  Feeder supply included 44 percent steers 553 to 599 pounds brought $170.25 to $178 and feeder steers 666 to 695 pounds brought $154.50 to $165.  Medium and Large 1 feeder heifers 450 to 491 pounds brought $153.50 to $165 and feeder heifers 658 to 691 pounds brought $140.25 to $150.25.

Boxed beef closed sharply higher with strong demand for moderate offerings.  Choice closed $3.54 higher at $266.31 and Select closed $3.89 higher at $255.19.  The Choice/Select spread is $11.12. Estimated cattle slaughter is 120,000 head – up 1,000 on the week and up 19,000 on the year. 

Lean hog futures ended the day higher, supported by cash and wholesale business.  April lean hogs closed $.77 higher at $102.87 and May lean hogs closed $1.80 higher at $104.45. 

Cash hogs closed higher with a solid negotiated run.    Packers have been aggressive in their procurement efforts.  Strong demand on the global market and domestically has been providing a lot of price support and that’s expected to continue.  The industry is watching the availability of market-ready barrows and gilts.  Hog weights declined slightly on the week to 287.3 pounds, that’s a 2.6 drop from year-ago levels. Barrows and gilts at the National Daily Direct closed $1.38 higher with a base range of $96 to $101.50 and a weighted average of $99.19; the Iowa/Minnesota closed $1.24 higher with a weighted average of $100.75; the Western Corn Belt closed $1.24 higher with a weighted average of $100.50.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60 and higher in Red Oak, Iowa at $67.  At Illinois, slaughter sow prices were $1 lower with good demand for heavy offerings at $69 to $79.  Barrow and gilt prices were steady with good demand for moderate offerings at $63 to $71.  Boars ranged from $35 to $40 and $15 to $20. 

Pork values closed higher – up $1.10 at $110.69.  Bellies, ribs, picnics, and hams were all higher to sharply higher.  Butts and loins were lower to sharply lower.     Estimated hog slaughter is 494,000 head – up 2,000 on the week and up 21,000 on the year.  Tuesday’s hog slaughter has been revised to 482,000 head.