Market News
Hog futures head into the weekend mostly higher
At the Chicago Mercantile Exchange, live and feeder cattle ended the day mostly lower, watching direct business develop. February live cattle closed $.27 higher at $116.72 and April live cattle closed $.02 higher at $123.77. March feeder cattle closed $1.22 lower at $138.27 and April feeder cattle closed $.57 lower at $142.20.
A light to moderate direct cash cattle trade took place on Friday. Live deals in the South were at $114, $1 higher than last week’s weighted averages. Dressed business in the North ranged from $178 to $180, fully steady with Thursday’s business, and steady to $2 higher than the prior week’s weighted average basis in Nebraska.
At the Ogallala Livestock Auction in Nebraska, compared to last week, steers over 700 pounds were steady to $7 higher and steers over 700 pounds were steady to $3 lower. Heifers were steady to $5 lower. The USDA says demand was good all day. Receipts were down on the week. Feeder supply included 47 percent steers and 73 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 651 to 696 pounds brought $147.50 to $155 and feeder steers 701 to 743 pounds brought $143 to $150. Medium and Large 1 feeder heifers 602 to 648 pounds brought $132.50 to $144.50 and feeder heifers 711 to 748 pounds brought $128 to $134.
At the South Dakota Hay Market, compared to last week, alfalfa and grass hay were steady. There were just a few reported sales this past week. Demand was only moderate, with the best demand coming from out-of-state areas looking for high-testing alfalfa. The lack of a hard winter has substantially lessened the need for supplemental feedings. There were very large offerings in regional hay markets and that’s pressuring prices. Alfalfa, supreme large squares brought $240. Alfalfa premium large squares brought $200. Alfalfa, good/premium large rounds brought $150 and $170. Alfalfa, good large squares brought $185. Grass, premium large rounds brought $110.
Boxed beef closed firm with moderate demand for moderate offerings. Choice closed $.33 higher at $234.58 and Select closed $.35 higher at $220.79. The Choice/Select spread is $13.79. Estimated cattle slaughter is 113,000 head – down 7,000 on the week and down 4,000 on the year. Saturday’s estimated kill is 70,000 head – up 8,000 on the week and up 42,000 on the year.
Lean hog futures ended the day mostly higher, supported by long-term demand expectations. February lean hogs closed $.05 lower at $70.97 and April lean hogs closed $1 higher at $80.30.
Cash hogs closed mixed with a moderate negotiated run. Overall, the industry is optimistic demand for US pork will continue to hold. But, the heavy supplies are limiting the market’s ability to move higher. The availability of market-ready hogs is more than ample and daily slaughter totals, for the most part, have been very large. That adds more pork to the market. Barrows and gilts at National Daily Direct closed $.17 higher with a base range of $51 to $66 and weighted average of $61.33; the Iowa/Minnesota closed $1.36 lower with a weighted average of $63.26; the Western Corn Belt closed $1.02 lower with a weighted average of $63.21. The Eastern Corn Belt was not reported due to confidentiality.
According to the USDA’s Feeder Pigs Report, compared to last week early-weaned pigs were steady to $1 lower per head. All feeder pigs were $7 higher per head. Demand was moderate for light to moderate offerings. Receipts included 42% formulated prices. The Total Composite cash range for early-weaned pigs was $45.50 to $64 for a weighted average of $60.03. The Total Composite formula range for early-weaned pigs was $39.60 to $66.48 for an average of $50.10. The weighted average for all early-weaned pigs was $55.47 and the weighted average for all feeder pigs was $74.76.
Butcher hog prices at the Midwest cash markets are steady at $44. At Illinois, slaughter sow prices were firm with good demand for moderate offerings at $40 to $51. Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $36 to $41. Boars ranged from $15 to $20 and $5 to $10.
Pork values closed lower – down $1.65 at $84.18. Hams and bellies were sharply lower. Picnics and ribs were lower. Loins were firm and butts were higher. Estimated hog slaughter is 477,000 head – down 10,000 on the week and down 13,000 on the year. Thursday’s hog slaughter has been revised to 456,000 head. Saturday’s estimated kill is 291,000 head, up 42,000 on the week and up 75,000 on the week.
