Hog futures supported by stronger wholesale values
At the Chicago Mercantile Exchange, live cattle are mixed on spread trade and feeder cattle are lower on follow-through selling. August live cattle closed $.55 higher at $107.60 and October live cattle closed $.07 higher at $110.22. August feeder cattle closed $1.02 lower at $143.92 and September feeder cattle closed $.80 lower at $146.57.
A fairly light direct cash cattle trade took place in the North on Friday. Deals in Nebraska were at $168 dressed – about $5 higher than prior week’s weighted averages and at $106 live, about $3 higher than the previous week’s averages. Deals in Iowa ranged from $165 to $170 dressed. Some cleanup trade took place in Kansas at $105 live, $1 higher than the week’s previous business. There was a very light trade that took place on Thursday in Kansas and Texas at mostly $104 live, fully steady with the bulk of the week’s trade and $4 higher than the prior week’s averages.
In Missouri this past week, feeder steers and heifers were uneven from $3 lower to $3 higher. Mid-weight feeders from 550 to 700 pounds had the most strength and were mostly higher across the board. Pasture conditions and water look good for mid-August. Receipts were down on the week and up on the year. Feeder supply included 52 percent steers and 57 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 649 pounds brought $134 to $164 and feeder steers 750 to 799 pounds brought $124 to $151.95. Medium and Large 1 feeder heifers 600 to 647 pounds brought $125 to $153.85 and feeder heifers 700 to 745 pounds brought $126 to $147.
At the Missouri Hay Market this week, hay prices are steady while the supply is light. There is still some haying taking place across the state, but many have wrapped up for the year. Hay movement remains slow, although listings of hay being offered for sale each week continues to grow. Alfalfa, supreme medium squares brought $180 to $225. Alfalfa, supreme small squares brought $7 to $9 per bale. Alfalfa premium medium squares brought $160 to $180. Alfalfa good large rounds brought $120 to $160. Alfalfa good small squares brought $5 to $7. Alfalfa fair large rounds brought $100 to $125. Alfalfa/Grass Mix, good/premium small squares brought $6 to $8 per bale. Mixed grass good/premium large rounds brought $80 to $120. Mixed grass fair/good large rounds brought $60 to $80.
Boxed beef closed higher with good demand for moderate offerings. Choice is $3.29 higher at $214.24 and Select is $1.88 higher at $199.29. Estimated cattle slaughter is 112,000 head – up 3,000 on the week and down 3,000 on the year. Saturday’s estimated kill is 63,000 head, up 3,000 on the week and down 11,000 on the year.
Lean hog futures closed higher on follow-through buying and support from the higher wholesale values during the session. August lean hogs closed $.12 higher at $53.82 and October lean hogs closed $.67 higher at $53.02.
Cash hogs closed steady with moderate negotiated numbers. The industry continues to monitor the supply and demand situation. Supplies of market-ready barrows and gilts are more than ample and slaughter totals continue to push higher adding more pork to the market. With an economy that has been recovering at a slow pace, demand uncertainties linger. All of these are contributing factors to the current price situation, which is struggling to break turn around and move higher. Barrows and gilts at the National Daily Direct closed $.09 higher with a base range of $35 to $38 for a weighted average of $37.60; the Iowa/Minnesota closed $.09 lower for a weighted average of $37.76; the Western Corn Belt closed $.14 lower for a weighted average of $37.71. The Eastern Corn Belt was not reported due to confidentiality.
According to this week’s Feeder Pig Report, early-weaned pigs were $1 per head higher. All feeder pigs were $2 per head higher. The USDA says demand was moderate for moderate offerings and receipts included 44% formulated prices. Total Composite formula range for early-weaned pigs is $16.39 to $42.63 and the Total Composite cash range is $1 to $20. The Total Composite weighted average for all early-weaned pigs is $22.07 and the average for all feeder pigs is $18.04.
The Midwest cash markets are closed today. At Illinois, slaughter sow prices were steady with moderate to good demand for moderate to heavy offerings at $11 to $23. Barrow and gilt prices were steady with moderate demand for moderate to heavy offerings at $19 to $24. Boars ranged from $1 to $3.
Pork values closed higher – up $1.17 at $74.93. Picnics and ribs were sharply higher. Butts, hams and loins were all higher. Bellies closed lower. Estimated hog slaughter is 472,000, that’s down 2,000 on the week and up 18,000 on the year. Saturday’s estimated kill is 219,000 head – down 11,000 on the week but up 79,000 on the year.