Market News
Sharply higher wholesale values support hog futures
At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower on profit-taking with additional pressure from the weaker cash trade and boxed beef prices. October live cattle closed $.55 lower at $103.92 and December live cattle closed $.62 lower at $107.82. September feeder cattle closed $1.10 lower at $137.60 and October feeder cattle closed $1.12 lower at $138.32.
Another round of light direct cash cattle trade took place on Thursday. Live deals in Texas and Western Nebraska are at $102, that’s $1 lower than Wednesday’s business in the South. Northern dressed business ranged from $162 to $163, fully steady with Wednesday’s trade and $4 lower than last week’s weighted averages. There was a light trade that took place in most of cattle country on Wednesday with Northern dressed deals marked at $162 to $163, mostly $163, $4 lower than last week’s weighted average basis in Nebraska. Southern live business was at mostly $103, $1 below Tuesday’s business and $2 lower than the prior week’s weighted averages.
At the Mitchell Livestock Auction in South Dakota, compared to last week feeder steers 800 to 850 pounds were $3 higher, however a lower undertone was noted across other weight classes of steers and across all classes of heifers. There were a few load lots in the day’s offerings. The USDA was demand was fair. Receipts were up on the week and down on the year. Feeder supply included 31 percent steers and 92 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 813 to 843 pounds brought $144.25 to $146.85 and feeder steers 861 to 887 pounds brought $135.25 to $139.50. Medium and Large 1 feeder heifers 613 to 649 pounds brought $144 to $147.75 and feeder heifers 850 to 897 pounds brought $124.25 to $128.
Boxed beef closed weak to lower on light demand for moderate offerings. Choice closed $.34 lower at $227.24 and Select closed $1.32 lower at $212.50. The Choice/Select spread is $14.74.
Estimated cattle slaughter is 118,000 head – down 1,000 on the week and up 1,000 on the year.
Lean hog futures closed mostly higher on spread adjustments with support from higher cash trade and sharply higher wholesale values. October lean hogs closed $2.85 higher at $59.25 and December lean hogs closed $1.47 higher at $57.97.
Closing cash hog prices were delayed due to packer submission problems, but at midday they were higher with a big negotiated run. Packers were aggressive in their procurement efforts ahead of the long holiday weekend. The industry continues to watch the demand picture as supplies of market-ready hogs are more than ample. It was another strong week for Export Sales with China listed as the largest purchaser of US pork. Domestic demand has stayed relatively strong despite higher retail prices and as long as demand holds, it should help to provide at least some price support.
The Midwest cash markets are closed today.
At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $11 to $23. Barrow and gilt prices were firm with good demand for moderate to heavy offering at $24 to $28.
Pork values closed sharply higher – up $6.68 at $80.19. Hams closed nearly $19 higher and bellies were up almost $7.50. Loins were also sharply higher. Picnics were steady and butts were weak. Ribs closed sharply lower.
Estimated hog slaughter is 480,000 head – up 8,000 on the week and up 14,000 on the year. Wednesday’s hog slaughter is 474,000 head.
