Market News
Hog futures head into the end of the week mixed
At the Chicago Mercantile Exchange, live cattle closed mostly higher with support from higher boxed beef. Feeder cattle closed lower, pressured by the day’s sharply higher move in corn. June live cattle closed $.10 lower at $116.335 and August live cattle closed $.10 higher at $119.42. August feeder cattle closed $2.35 lower at $152.85 and September feeder cattle closed $2.27 lower at $154.82.
A very light direct cash cattle trade took place on Thursday in just a couple of areas. Deals were at generally steady money with the rest of the week’s business. It’s likely the bulk of the week’s business has wrapped up, but there could be a little cleanup trade on Friday. Asking prices for cattle left on showlists are at $121 plus live in the South and $191 plus dressed in the North. Deals this week have been at mostly $119 to $120, steady to $1 higher than last week’s weighted averages. Dressed deals have been mostly at $191, generally steady with last week’s weighted average basis in Nebraska.
At the OKC West Livestock Auction in Oklahoma, compared to last week feeder steers were mostly steady to $2 higher. Feeder heifers were $2 to $4 higher. The USDA says demand was moderate to good. Steer and heifer calves that were weaned and ready to be turned out on grass sold with good to very good demand. Receipts were up on the week and the year. Feeder supply included 64 percent steers and 91 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 801 to 846 pounds brought $134 to $139.75 and feeder steers 853 to 891 pounds brought $130.50 to $135.25. Medium and Large 1 feeder heifers 705 to 746 pounds brought $126 to $135 and feeder heifers 756 to 791 pounds brought $121 to $130.
Boxed beef closed about steady to higher on good demand for moderate offerings. Choice closed $.49 higher at $329.98 and Select closed $.05 higher at $304.10. The Choice/Select spread is $25.88. Estimated cattle slaughter is 121,000 head – up 2,000 on the week and up 12,000 on the year.
Lean hog futures ended the day mixed on spread adjustments. June lean hogs closed $.45 higher at $115.72 and July lean hogs closed $.30 higher at $116.70.
Cash hogs closed mixed with a solid negotiated run. Processors were aggressive in their procurement efforts early in the day to move their desired numbers. Demand for US pork has been strong on the global market and domestically and that has been supportive to prices, that’s expected to continue. However, should a disruption occur, it would likely send prices tumbling. Barrows and gilts at the National Daily Direct closed $2.30 higher with a base range of $99.84 to $114 and a weighted average of $107.21; the Iowa/Minnesota closed $.60 lower with a weighted average of $111.50; the Western Corn Belt closed $1.19 lower with a weighted average of $110.91. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash market are $1 lower at $77. At Illinois, slaughter sow prices were $1 to $2 lower with light to moderate demand for heavy offerings at $38 to $52. Barrow and gilt prices were $2 lower with light to moderate demand for moderate offerings at $71 to $74. Boars ranged from $40 to $45 and $12 to $18.
Pork values closed sharply higher – up $2.39 at $126.37. Loins, hams, and butts were all sharply higher. Picnics, bellies, and ribs were lower to sharply lower. Estimated hog slaughter is 481,000 head – up 4,000 on the week and up 52,000 on the year.
