Market News
Hog futures move mostly higher on sharp pork gains
Chicago Mercantile Exchange live cattle futures were mostly lower and feeders were down on spread adjustments and profit taking, getting ready for the week’s widespread direct business. August live was down $.70 at $122.95 and October was $.55 lower at $127.57. August feeder cattle were $.55 lower at $158.77 and September was down $.22 at $162.82.
The country was quiet for most of Wednesday for cash cattle trade. A few scattered deals developed in the South at $121. Some deals in Iowa were noted at $126. Deals were not established in the North with asking prices for the day around $203.
Boxed beef closed sharply higher. Choice closed $5.48 higher at $310.80. Select finished $3.38 higher at $287.99. The choice/select spread is $22.81.
Estimated cattle slaughter is 120,000 head up 1,000 on the week but down 3,000 on the year.
At the Callaway Livestock Center in Kingdom City, Missouri, compared to last week, a very light offering of feeders had a higher undertone. Steers 500 to 600 pounds sold mostly steady, steers 600 to 650 sold $3 to $5 higher, and steers 800 to 825 traded with a firm undertone. Feeder heifers from 500 to 600 pounds sold steady and heifers over 600 pounds sold with a higher undertone. Slaughter cows sold steady on light offerings. USDA saus demand was good on light offerings with several load lots available. Receipts were sharply down on the week and year. Feeder supply included 59 percent steers and 48 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 599 pounds brought $176 to $185 and feeder steers 618 to 630 pounds brought $178 to $181. Medium and Large 1 feeder heifers 550 to 588 pounds brought $153.25 to $158.50 and feeder heifers 606 to 629 pounds brought $151 to $152.25.
Lean hog futures were mostly higher on spread trade and the sharply higher midday move in pork. August was down $.05 at $109.62 and October was up $1.97 at $85.85.
Cash hogs closed higher. The industry continues to monitor the availability of market-ready barrows and gilts. While prices have pulled back recently, the strong demand for US pork on the global market and domestically have provided some price support. Overall, that is expected to continue. However, should a disruption occur, prices would likely be negatively impacted. Barrows and gilts at the National Daily Direct closed with a weighted average of $99.61; the Iowa/Minnesota a weighted average of $102.25; the Western Cornbelt finished with a weighted average of $102.21; prices at the Eastern Cornbelt were not reported due to confidentiality.
Butcher hogs are steady at midday at $70.
Pork values closed higher, up $1.56 at $123.96. Hams ended more than $10 higher. Picnics and ribs closed higher. Loins, butts, and bellies closed lower.
Estimated hog slaughter is 474,000 head. That’s up 2,000 on the week but down 6,000 on the year.
