Hog futures higher following ASF report in Germany

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Hog futures higher following ASF report in Germany

Live cattle futures were higher, supported by the strength in hogs, waiting for the rest of the week’s direct business. October was up $.40 at $105.10 and December was $.27 higher at $109.42.

Feeder cattle were also supported by the higher move in hogs. September was $.77 higher at $139.17 and October was up $1.35 at $139.60.

By Thursday afternoon most cash cattle business was quiet with buyers and sellers refusing to blink. Thursday kept much of the previous day’s trend, holding bids of $101 in most areas. Feeders might be waiting for Friday to sell, holding for higher prices. A few bids were made in Kansas and Nebraska. Southern asking prices were around $104 to $105. Dressed deals in Nebraska and Iowa came in at $158 to $161, $2 to $3 lower than last week’s weighted averages. Live business in Kansas and Texas was at $101, about $2 lower than last week’s weighted average.

Boxed beef closed lower on moderate demand for strong offerings. Choice is $2.12 lower at $220.83 and Select is $.19 lower at $207.32. The Choice/Select spread is $13.51

Thursday’s cattle slaughter was 119,000 head – up 1,000 on the week and 4,000 on the year as packers continue to work through the ample amount of stock caused by partial and full processing shut-downs because of COVID-19.

Lean hog futures were sharply higher on the report of African swine fever being found in a wild boar in Germany and the potential increase in export demand for U.S. pork. South Korea, already a buyer of U.S. pork, has suspended imports from Germany, and there’s talk China could follow suit. Contracts will have expanded trading limits Friday. October was up $3.00 at $64.37 and December was $3.00 higher at $62.85.

Cash hogs closed higher also gaining potential support in the market because of ASF being found in Germany. Barrows and gilts at the National Daily Direct ended the day $2.46 higher with a base range of $42.00 to $57.00 for a weighted average of $51.33. The regional markets were not reported due to confidentiality.

Pork values closed moderately higher – up $.73 at $80.86. Bellies, loins and hams ended the day sharply higher, both above $2. Picnics closed higher – up $0.47 at $55.29. Butts and ribs closed sharply lower with ribs down nearly $1.50 and butts down more than $2.75.

Thursday’s hog slaughter was 485,000 head – up 5,000 on the week and down 2,000 on the year.