Hog future mixed on spread adjustments
At the Chicago Mercantile Exchange, live cattle closed lower and feeder cattle were mostly lower ahead of widespread direct cash trade. October live cattle closed $.45 lower at $108.37 and December live cattle closed $.95 lower at $110.27. October feeder cattle closed $.25 higher at $138.37 and November feeder cattle closed $.50 lower at $136.32.
A light to moderate direct cash cattle trade took place on Wednesday. Live deals in in the South were at $108, about $.50 to $1 lower than last week’s weighted averages. Deals in the North were at $108 live and $169 dressed, almost $1 lower than last week’s weighted averages. Most asking prices are still firm at $111 to $112 live in the South and $172 dressed in the North.
At the Philip Livestock Auction in South Dakota, compared to last week, feeder steers 400 to 550 pounds were steady, 550 to 600 pounds were steady to $2 lower, 600 to 850 pounds were steady to $2 higher. Feeder heifers 400 to 450 pounds were steady, 450 to 750 pounds were $2 to $4 lower, and 750 to 950 pounds were steady to $2 higher. The USDA says demand was very good for many long strings, load lots, and many packages of feeder steers and feeder heifers all of which sold on an active market. Most of the supply was home raised, fully vaccinated, and carried light to moderate flesh with favorable weighing conditions. Receipts were up on the week and the year. Feeder supply included 59 percent steers and 39 percent of the offering was over 600 pounds. Medium and large 1 feeder steers 500 to 547 pounds brought $159 to $170 and feeder steers 551 to 599 pounds brought $153.50 to $163. Medium and Large 1 feeder heifers 500 to 546 pounds brought $138.50 to $145 and feeder heifers 851 to 875 pounds brought $134.25 to $143.75.
Boxed beef closed lower on light demand for moderate offerings. Choice closed $1.30 lower at $211.14 and Select closed $.81 lower at $199.27. Estimated cattle slaughter is 119,000 head – even on the week and up 2,000 on the year.
Lean hog futures ended the day mixed on spread adjustments and mixed fundamentals. October lean hogs closed $.62 higher at $78.42 and December lean hogs closed $2.27 higher at $68.42.
Cash hogs closed lower with fairly light negotiated purchases. Heavy supplies are putting pressure on prices. The availability of market-ready hogs is more than ample and daily slaughter totals keep increasing. While that’s keeping supply chains running, it’s also adding more pork to an already saturated market. The industry, however, remains optimistic demand for US pork will see a big boost on the global market, which would provide price support. Hog weights this week are up again to 284.3 pounds, that’s up nearly a 1 pound from last week and a 0.7-pound increase on the year. Barrows and gilts at the National Daily Direct closed $1.74 lower with a base range of $57.50 to $64.50 for a weighted average of $62.00; the Iowa/Minnesota closed $2.07 lower for a weighted average of $62.57; the Western Corn Belt is $2.50 lower for a weighted average of $62.48. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $50. At Illinois, slaughter sow prices were $4 higher with good demand for moderate offerings at $20 to $34. Barrow and gilt prices were weak with good demand for moderate to heavy offerings at $41 to $45. Boars ranged from $1 to $5.
Pork values closed firm – up $.67 at $96.57. Hams closed more than $7 higher. Ribs were also higher. Bellies, picnics, loins, and butts were all lower to sharply lower. Estimated hog slaughter is 489,000 head – even on the week and down 2,000 on the year.