Hog futures mixed ahead of USDA’s hogs and pigs report

Market News

Hog futures mixed ahead of USDA’s hogs and pigs report

At the Chicago Mercantile Exchange, live cattle ended the day mostly higher and feeders were higher, watching corn and the direct markets, with the USDA’s Cattle on Feed numbers out on Friday.  June live cattle closed $.32 higher at $122.82 and August live cattle closed $.25 lower at $122.62.  August feeder cattle closed $1.45 higher at $157.15 and September feeder cattle closed $1.12 higher at $159.20. 

There was another very light, scattered round of direct cash cattle trade that took place on Thursday.  Live deals in Nebraska were at $126, those are marked for delayed delivery.  Live deals in the South were at $122, generally steady with last week’s business.  Asking prices at $124 plus live in the South and $202 plus dressed in the North.  Look for more business to develop before the end of the day Friday. There was a light to moderate trade that took place, mostly in the North on Wednesday with dressed deals ranging from $197 to $202, mostly $197, generally $1 higher than last week’s weighted average basis in Nebraska.  

At the Green City Livestock Auction in Missouri, compared to the most recent sale, steers under 700 pounds and all weights of heifers were $7 to $10 higher with several spots of sharply higher numbers.  Steers over 700 pounds were steady to $3 higher.  The USDA says quality was better than the most recent sale, which contributed to the higher market.  Overall demand and buyer activity was also improved.  Receipts were up on the week.  Feeder supply included 56% heifers and 74% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 661 to 689 pounds brought $157.50 to $174 and feeder heifers 867 to 886 pounds brought $143.50 to $144.85.  Medium and Large 1 feeder heifers 661 to 687 pounds brough $143.25 to $153.25 and feeder heifers 700 to 749 pounds brought $140.50 to $150.25. 

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice closed $4.63 lower at $307.42 and Select closed $.73 higher at $276.14.  The Choice/Select spread is $31.28.   Estimated cattle slaughter is 119,000 head – down 1,000 on the week and up 1,000 on the year. 

Lean hog futures ended the day mixed, mostly lower ahead of Thursday’s Hogs and Pigs report, the numbers look neutral to bullish for prices. There was additional pressure from sharply lower cash business.  Lean hogs closed $4.50 lower at $100.02 and August lean hogs closed $2.02 lower at $98.70. 

Cash hogs ended the day sharply lower with a moderate negotiated run.  Processors continue to keep a close eye on the availability of market-ready barrows and gilts.  It appears they’ve taken a break from their aggressive procurement efforts and prices reflect that.  Demand for US pork on the global market and domestically has been strong and largely supportive to prices.  The industry doesn’t expect that to change anytime soon.  Barrows and gilts at the National Daily Direct closed $6.60 lower with a base range of $110 to $125 and a weighted average of $116.18 and the Western Corn Belt has a weighted average of $121.96.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported at midday due to confidentiality. 

Butcher hog prices at the Midwest cash market are $2 higher at $83. At Illinois, slaughter sow prices were firm with moderate to good demand for moderate offerings at $40 to $50.  Barrow and gilt prices were weak with good demand for heavy offerings at $78 to $90.  Boars ranged from $45 to $50 and $12 to $18. 

Pork values closed sharply higher, up $5.17 at $112.99.  Bellies closed almost $34 higher.  Hams and loins were both sharply higher.  Ribs, butts, and picnics were all sharply lower. Estimated hog slaughter is 473,000 head – down 5,000 on the week and up 4,000 on the year.