Hog futures higher ahead of Hogs and Pigs report

Market News

Hog futures higher ahead of Hogs and Pigs report

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, supported by the stronger cash trade.  December live cattle closed $1.60 higher at $111.92 and February live cattle closed $1.27 higher at $114.72.  January feeder cattle closed $.37 higher at $140.27 and March feeder cattle closed $.07 higher at $141.95. 

An active Wednesday for direct cash cattle trade.  Live deals in the South were $110, that’s $2 higher than last week’s weighted averages.  Business in the North was reported at $172 dressed, also well above last week’s weighted average basis.  Deals in Wednesday’s Fed Cattle Exchange were at $110. 

At the Ozarks Regional Stockyards in Missouri, no comparison is available because the offering was much smaller this week, but there were mostly steady to weak undertones noted.  The USDA says demand was moderate on a very light supply.  Feeder supply included 50 percent steers and 33 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 410 to 432 pounds brought $166 to $176 and feeder steers 510 to 540 pounds brought $154 to $164.  Medium and Large 1 feeder heifers 452 to 471 pounds brought $135 to $143 and feeder heifers 835 pounds brought $124.50. 

Boxed beef closed lower to sharply lower on light demand for light offerings.  Choice closed $3.13 lower at $207.54 and Select closed $1.66 lower at $197.93. Estimated cattle slaughter is 116,000 head – down 4,000 on the week. 

Lean hog futures closed higher in anticipation of the Quarterly Hogs and Pigs report.  Current market-hog inventory came in at or above expectations, while the pig crop numbers were above expectations. The decline in sow numbers should be helpful, but tempered by farrowing expectations. February lean hogs closed $1.82 higher at $67.85 and April lean hogs closed $1.27 higher at $71.30. 

Cash hogs closed lower with a fairly large negotiated run.  The availability of market-ready barrows and gilts is more than ample, and processors aren’t having to work hard to move their desired numbers.  Daily slaughters continue at their very large levels.  That’s helping the industry work through that backlog of hogs in the production system and also keeps the supply chain moving, but adds more pork to an already saturated market.  Global and domestic demand are facing some uncertainty and that puts more pressure to prices.  Hog weights declined this week to 288.7 pounds, that’s down 1.7 pound on the week, but still 2.8 pounds above year-ago levels. Barrows and gilts at the National Daily Direct are $.88 lower with a base range of $44 to $52 with a weighted average of $50.44; the Iowa/Minnesota closed $1.62 lower with a weighted average of $50.84; the Western Corn Belt closed $1.41 lower with a weighted average of $50.84.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

At Illinois, slaughter sow prices were steady with moderate to good demand for heavy offerings at $20 to $34.  Barrow and gilt prices were weak with light to moderate demand for moderate offerings at $28 to $34.  Boars ranged from $15 to $20 and $4 to $10. 

Pork values closed higher – up $1.18 at $69.34.  Butts, hams, bellies, picnics, and ribs were all higher.  Loins closed lower. Estimated hog slaughter is 451,000 head – down 32,000 on the week.  Tuesday’s hog slaughter has been revised to 473,000 head. 

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