Hog futures supported by higher wholesale values

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Hog futures supported by higher wholesale values

At the Chicago Mercantile Exchange, live cattle ended the day mostly higher on oversold signals and technical buying.  Feeder cattle were higher on the same factors.  August live cattle up $.10 at $99.25 and October live cattle up $.42 at $103.95.  August feeder cattle closed $.47 higher at $134.52 and September feeder cattle closed $.50 higher at $136.17. 

There was a very, very light direct cash cattle trade that took place in the North on Thursday.  Dressed deals in Nebraska were at $157.  The rest of cattle country has been at a standstill.  There are a few scattered bids at $95 live and asking prices are hard to find.  While more trade is still expected this week in the North, it’s likely the bulk of the week’s business has wrapped up in the South.

At the Springfield Livestock Marketing Center in Missouri, compared to two weeks ago steers under 650 pounds and heifers under 600 pounds were mostly steady with spots of $3 higher.  Steers over 650 pounds were $2 to $5 higher and heifers over 600 pounds were steady.  The USDA says demand was moderate to good and supply wad moderate.  Receipts were up from two weeks ago and on the year. Feeder supply included 53 percent steers and 51 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 603 to 647 pounds brought $139.50 to $152 and feeder steers 856 to 899 pounds brought $124.75 to $129.  Medium and Large 1 feeder heifers 508 to 548 pounds brought $134 to $137.50 and feeder heifers 600 to 625 pounds brought $131 to $135.50. 

Boxed beef closed steady to weak with light demand for light to moderate offerings.  Choice closed $.24 lower at $203.59 and Select closed $.69 lower at $194.83.  The Choice/Select spread is $8.76.

Estimated cattle slaughter is 120,000 head – down 1,000 on the week and up 1,000 on the year. 

Lean hog futures ended the day higher, supported by the sharply higher wholesale values during the session, higher cash trade, and oversold signals.  July lean hogs closed $1.80 higher at $45.85 and August lean hogs closed $2.27 higher at $50.22. 

Cash hogs closed higher with big negotiated purchases.  Packers were extremely aggressive in their procurement efforts.  Supplies of market-ready hogs are more than ample and slaughter runs have been pushing closer to pre-COVID-19 levels.  That’s adding more pork to the market.  However, the demand picture, both globally and domestically, is showing some promise.  On the domestic side – we’re seeing slight improvements overall economic position and that’s welcomed news. Barrows and gilts at the National Daily Direct Closed $1.09 higher with a base range of $24 to $31.13 for a weighted average of $30.02; the Iowa/Minnesota closed $1.72 higher for a weighted average of $30.42; the Western Corn Belt closed $1.74 higher for a weighted average of $30.44. The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $20.  At Illinois, slaughter sow prices were steady with moderate to good demand for heavy offerings at $9 to $20.  Barrow and gilt prices were firm with moderate to good demand for moderate to heavy offerings at $12 to $20.  Boars ranged from $2 to $5. 

Pork values ended the day steady – down $.04 at $67.12.  Ribs, loins, and butts were all weak to lower.  Hams closed steady.  Bellies and picnics were higher.  Estimated hog slaughter is 469,000 head – up 8,000 on the week and down 9,000 on the year. 

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