Hog futures mixed on spread trade

Market News

Hog futures mixed on spread trade

At the Chicago Mercantile Exchange, live cattle ended the day mostly lower and feeder cattle were lower on profit taking and the less than stellar export sales report.  August live cattle closed $.32 higher at $102.62 and October live cattle closed $.47 lower at $106.87.  August feeder cattle closed $1.32 lower at $143.47 and September feeder cattle closed $.60 lower at $145.87. 

A light to moderate direct cash cattle trade took place on Thursday.  Deals in Iowa were at $103 live and $163 to $164 dressed.  Deals in Nebraska were at $163 to $163.50 dressed.  Asking prices for cattle left on showlists are at $101 to $102 live in the South and $165 dressed in the North.  A light to moderate trade was reported in parts of the South on Wednesday at $99 to $100 live, that’s $2 to $3 higher than last week’s weighted averages. 

At the Mitchell Livestock Auction in South Dakota, compared to last week an unevenly steady undertone was noted.  There were a fair amount of load lots in the offering.  The USDA says demand was good.  Receipts were down on the week and the year.  Feeder supply included 20 percent steers and 93 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 800 to 842 pounds brought $140 to $147.25 and feeder steers 863 to 885 pounds brought $137.50 to $144.  Feeder heifers 641 to 647 pounds brought $150.25 to $153.60 and feeder heifers 860 to 893 pounds brought $123.50 to $131.35. 

Boxed beef closed higher with good demand for moderate offerings.  Choice closed $1.09 higher at $204.66 and Select closed $1.19 higher at $192.01. Estimated cattle slaughter is 118,000 head – down 1,000 on the week and down 4,000 on the year. 

Hog futures ended the day mixed on spread adjustments.  August lean hogs closed $.30 higher at $49.75 and October lean hogs closed $.10 lower at $49.20.   

Cash hogs closed mixed with solid negotiated numbers.  Processors continue to increase daily slaughter totals and that’s helping to keep the supply chain moving and start to relieve some of the pressure from the backlog in the production system.  That’s good news as supplies of market-ready hogs are more than ample.  It’s also adding more pork to a heavily saturated market.  Demand will need to remain strong, both globally and domestically to provide some price-support to the markets. Barrows and gilts at the National Daily Direct closed $.54 lower with a base range of $36 to $40 for a weighted average of $37.99; the Iowa/Minnesota closed $.66 higher for a weighted average of $38.81; the Western Corn Belt closed $.66 higher for a weighted average of $38.77; the Eastern Corn Belt had no comparison but a weighted average of $37.77. 

Butcher hog prices at the Midwest cash markets are $2 higher at $26. At Illinois, slaughter sow prices were $1 higher with good demand for moderate to heavy offerings at $11 to $23.  Barrows and gilts were steady with moderate demand for moderate to heavy offerings at $19 to $24.  Boars ranged from $1 to $3. 

Pork values closed sharply higher – up $3.76 at $70.80.  Hams, butts, and bellies all closed higher.  Ribs were higher.  Picnics if rim.  Loins closed weak. Estimated hog slaughter is 476,000 head – down 4,000 on the week and up 1,000 on the year. 

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