Hog futures supported by demand optimisms

Market News

Hog futures supported by demand optimisms

At the Chicago Mercantile Exchange, live cattle closed mixed and feeders were higher watching corn and direct business develop.  June live cattle closed $.02 lower at $116.72 and August live cattle were unchanged at $120.10.  May feeder cattle closed $.35 higher at $136.62 and August feeders closed $2.55 higher at $156.67. 

A light to moderate direct cash cattle trade developed across most feeding areas on Tuesday.  Live deals were at $120, which’s $1 higher than last week’s weighted averages in the South and about steady with the North.  Some dressed deals in Nebraska were at $191, fully steady with last week’s business.  Asking prices were around $120 plus live in the South and $192 plus dressed in the North.  Look for those to be restated on Wednesday. 

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers were $3 to $7 higher.  Feeder heifers were $3 to $5 higher.  The USDA says supply was moderate with good demand.  Receipts were up on the week.  Feeder supply included 53 percent steers and 50 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 648 pounds brought $150 to $167 and feeder steers 800 to 846 pounds brought $124 to $138.  Medium and Large 1 feeder heifers 450 to 449 pounds brought $149 to $163 and feeder heifers 550 to 595 pounds brought $133.50 to $145. 

Boxed beef closed higher with good demand for moderate offerings.  Choice is $2.09 higher at $329.92 and Select is $.87 higher at $304.26.  The Choice/Select spread is $24.24.  Estimated cattle slaughter is 121,000, that’s up 1,000 on the week and up 14,000 on the year.  Monday’s cattle slaughter has been revised to 116,000 head. 

Lean hog futures ended the day mostly higher, supported by cash and wholesale business during the session, and long-term demand expectations.  June lean hogs closed $1.90 higher at $115.25 and July lean hogs closed $2.17 higher at $117.50. 

Cash hogs closed lower with moderate negotiated purchases.  After starting the day off bidding up to move their desired numbers, processors backed off in the afternoon.  The recent demand strength for US pork from buyers on the global market and domestically has provided a lot of price support recently and for the most part that is expected to continue.  Barrows and gilts at the National Daily Direct closed $1.89 lower with a base range of $101.17 to $115 and weighted average of $107.42; the Iowa/Minnesota closed $.78 lower with a weighted average of $112.85; the Western Corn Belt closed $1.21 lower with a weighted average of $112.45.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market are steady at $80. At Illinois, slaughter sow prices were $1 to $2 lower with moderate demand for heavy offerings at $40 to $54.  Barrow and gilt prices were steady with moderate demand for moderate offerings at $73 to $76.  Boars ranged from $40 to $45 and $12 to $18. 

Pork values closed sharply higher – up $2.31 at $124.52. Bellies were sharply higher.  Butts, loins, and hams were all higher.  Picnics and ribs were lower.   Estimated hog slaughter is 485,000 head – up 19,000 on the week and up 70,000 on the year.