Hog futures supported by higher pork values

Market News

Hog futures supported by higher pork values

At the Chicago Mercantile Exchange, live cattle closed higher, supported by higher cash trade and higher wholesale values.  Feeder cattle were modestly higher on the same factors with additional support from the day’s lower move in corn.  August live cattle closed $.75 higher at $107.47 and October live cattle closed $.95 higher at $110.82.  August feeder cattle closed $.32 higher at $143.55 and September feeder cattle closed $.40 higher at $146. 

Another round of light direct cash cattle trade on Wednesday.  Live deals were at mostly $106, fully steady with Tuesday’s deals and $2 higher than last week’s weighted averages.  There were just a handful of deals reported in the North at $170.  Asking prices were firm at $107 to $108 plus live and $175 plus dressed.  Look for business to develop over the balance of the week. 

At the close at the OKC West Livestock Auction in Oklahoma, feeder steers were $2 to $5 higher.  Feeder heifers were steady.  The USDA says demand was good, especially for heavier weight feeder steers.  Steer and heifer calves sold fully steady with last week’s higher market.  Demand was good and quality was plain to averages.  Receipts were up on the week and the year.  Feeder supply included 64 percent steers and 77 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 806 to 839 pounds brought $137.75 to $144.50 and feeder steers 855 to 891 pounds brought $137.50 to $142.50.  Medium and Large 1 feeder heifers 601 to 647 pounds brought $138 to $152.25 and feeder heifers 722 to 727 pounds brought $137 to $139.50. 

Boxed beef closed higher on good demand for heavy offerings.  Choice is $2.18 higher at $223.04 and Select is $1.00 higher at $205.65.  Estimated cattle slaughter is 119,000 head – up 2,000 on the week and up 1,000 on the year. 

Lean hog futures closed higher supported by the recently higher move in pork values.  October lean hogs closed $1.12 higher at $52.55 and December lean hogs closed $.40 higher at $53.57. 

Cash hogs closed higher to sharply higher with moderate negotiated numbers.  Packers bid up to move their desired numbers for the day.  But ultimately, the markets continue to monitor the supply and demand picture.  Supplies of market-ready barrows and gilts are ample.  Daily slaughter runs continue to push higher, that’s helping to alleviate some of the pressure on the supply chain and allowing processors to work through the backlog of hogs in the production system, albeit slowly.  The industry remains hopeful demand for pork, both globally and domestically will remain strong.  That gives the market the best opportunity to break out of this current price pattern and push higher.  Hog weights dropped again this week to 279.3 pounds, that’s a 1.1-pound decline from last week, but still 2.1 pounds above year-ago levels. Barrows and gilts at the National Daily Direct closed $1.24 higher with a base range of $34.50 to $43 for a weighted average of $38.89; the Iowa/Minnesota closed $2.41 higher for a weighted average of $40.49; the Western Corn Belt closed $2.46 higher for a weighted average of $40.49.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $23. At Illinois, slaughter sow prices were steady with good demand for moderate 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 $1 to $3. 

Pork values closed higher – up $.93 at $74.99.  Hams closed more than $12 higher.  Bellies were sharply lower.  Picnics, loins, and butts were all lower.  Butts closed weak. Estimated hog slaughter is 484,000 head – up 3,000 on the week and up 4,000 on the year.