Hog futures mostly lower at midweek

Market News

Hog futures mostly lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower watching direct business develop.  August live cattle closed $1.80 lower at $120.60 and October live cattle closed $1.45 lower at $126.70.  August feeder cattle closed $1.62 lower at $159 and September feeder cattle closed $1.20 lower at $161.52. 

There was light direct cash cattle trade reported in parts of cattle country on Wednesday.  Live deals in the South were at $120 to $122, which’s about steady with last week’s business.  Dressed deals were at $198 in the North, also about steady with last week’s weighted average basis.  Look for more business to develop over the balance of the week.   

At the Hub City Livestock Auction in South Dakota, there were higher undertones noted on both steers and heifers.  An accurate price trend wasn’t available because there were different weight classes offered.  The USDA says there was good to very good demand for the day’s offering featuring mostly strings and loads and a handful of packages.  Quality varied this week, from plain to attractive.  Flesh was mostly light to moderate plus.  There were some consignments off grass as drought continues.  The market was active.  Receipts were up on the week and down on the year.  Feeder supplies included 66% steers and 99% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 806 to 833 pounds brought $148.50 to $157.35 and feeder steers 922 to 945 pounds brought $145 to $148.50.  Medium and Large 1 feeder heifers 950 to 978 pounds brought $130 to $134.50 and Large 1 feeder heifers 1036 to 1048 pounds brought $128.75 to $131. 

Boxed beef closed lower on light demand for moderate offerings.  Choice closed $1.78 lower at $284.90 and Select closed $1.23 lower at $262.08.  The Choice/Select spread is $22.92.  Estimated cattle slaughter 120,000 head – even on the week and up 2,000 on the year.  Tuesday’s hog slaughter has been revised to 119,000 head. 

Lean hog futures ended the day mostly lower on spread adjustments with concerns about the long-term demand picture.  July lean hogs closed $.77 lower at $109.15 and August lean hogs closed $1.95 lower at $100.40. 

Cash hogs closed higher with moderate negotiated purchases.    Processors continue to monitor the availability of market-ready barrows and gilts.  Strong demand, both globally and domestically has helped provide price support and the industry expects that to continue.  However, should a disruption occur, it would likely send prices tumbling. Barrows and gilts at the National Daily Direct closed $.68 higher with a base range of $104 to $116 and a weighted average of $110.91.  The Iowa/Minnesota had a weighted average of $113.88 and the Western Corn Belt had a weighted average of $114.42.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market are steady in Dorchester, Wisconsin and Garnavillo, Iowa at $80.  Red Oak, Iowa is at $77. At Illinois, slaughter sow prices are steady with good demand for heavy offerings at $50 to $60.  Barrow and gilt prices were steady with good demand for heavy offerings at $72 to $80.  Boars ranged from $45 to $50 and $10 to $12. 

Pork values closed higher – up $2.13 at $115.75.  Hams and loins were both sharply higher.  Picnics were higher.  Bellies, ribs, and butts were lower to sharply lower. Estimated hog slaughter 467,000 head – up 3,000 on the week and even on the year. 

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