Market News
Hog futures pressured by long-term demand concerns
At the Chicago Mercantile Exchange, live and feeder cattle futures were supported by the higher box beef prices during the session and optimism ahead of the week’s direct trade. October live cattle closed $.42 higher at $106.27 and December live cattle closed $3.30 higher at $107.87. October feeder cattle closed $1.27 higher at $136.45 and November feeder cattle closed $1.82 higher at $135.72.
There was a light direct cash cattle trade reported on Thursday. Business in the South was at $106, steady with last week’s weighted averages. A very light, mostly live trade in the North was at $103 to $104 live, steady to $1 lower than the previous week. Dressed business was $158 to $163, but not near enough to establish an accurate trend. Asking prices are holding firm around $108 plus live in the South and $168 dressed in the North.
At the Sheridan Livestock Auction in Nebraska, compared to last week 400 to 600-pounds steers sold $3 higher with mid-4-weights trending $10 higher. Heifer calves were $3 to $7 higher. The USDA says demand was good from a large crowd of in-state and out-of-state buyers. The bulk of calves had preconditioned shots and there were several nice packages and load lots of top-quality, thick made, Sandhills caves in the run. Receipts were down on the week and up on the year. Feeder supply included 64 percent steers and 21 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 450 to 491 pounds brought $163.50 to $175.50 and feeder steers 563 to 597 pounds brought $146 to $157. Medium and Large 1 feeder heifers 412 to 435 pounds brought $145 to $150.25 and feeder heifers 452 to 493 pounds brought $134.25 to $143.75.
Boxed beef closed higher on good demand for moderate offerings. Choice is $1.38 higher at $207.17 and Select is $1.65 higher at $191.23. The Choice/Select spread is $15.94. Estimated cattle slaughter is 114,000 head – down 6,000 on the week and down 4,000 on the year.
Lean hog futures were pressured by the bearish weekly export sales report and long-term demand concern. December lean hogs closed $.75 lower at $65.62 and February lean hogs closed $.60 lower at $65.60.
Cash hogs closed weak to lower with moderate negotiated numbers. The industry remains optimistic demand for US pork will see a boost on the global market, which would be supportive to prices. Export sales this past week were below averages, but Mexico, Japan, and South Korea led the way for pork. Supplies of market-ready hogs are more than ample and the heavy supply situation is making it very difficult for prices to push higher, especially with the amount of pork coming online. Barrows and gilts at the National Daily Direct closed $.31 lower with a base range of $56 to $64 for a weighted average of $61.70; the Iowa/Minnesota had no comparison but a weighted average of $62.21; the Western Corn Belt closed $.94 lower with a weighted average of $61.80. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets were steady at $38. At Illinois, slaughter sow prices were firm with good demand for moderate to heavy offerings at $24 to $38. Barrow and gilt prices were weak with good demand for moderate to heavy offerings at $37 to $43. Boars ranged from $5 to $7.
Pork values closed sharply higher– up $3.05 at $87.57. Hams were sharply higher. Loins, picnics, and butts were firm to higher. Ribs and bellies were sharply lower. The estimated hog slaughter is 492,000 head – that’s even on the week and the year. Wednesday’s hog slaughter has been revised to 485,000 head.
