Hog futures lower ahead of USDA export sales report

Market News

Hog futures lower ahead of USDA export sales report

Chicago Mercantile Exchange live cattle futures were mixed, and feeders were lower, with the recent mostly lower trend in beef, watching the direct markets. October live was up $.65 at $123.75, and December was $.15 higher at $128.80. September feeders were $.30 lower at $155.75 and October was down $.02 at $159.25.

On Thursday, a light, scattered direct cash cattle trade took place with prices mostly steady with Wednesday’s business. Southern live deals came in around $124, and Northern dressed deals were slow to develop with asking prices at $205 plus.

Boxed beef cutout values closed lower on Thursday. Choice closed $2.28 lower at $332.58 and Select closed $1.72 lower at $296.45. The Choice/Select spread is $36.13.

At the Springfield Livestock Marketing Center in Missouri, compared to last week, feeder steers under 600 pounds traded steady to $2 lower, feeder steers over 600 pounds sold $3 to $6 higher. USDA says demand was good on moderate to heavy supply. Feeder supply included 52 percent steers and 54 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 681 to 695 pounds brought $154 to $164.75 and feeder steers from 711 to 730 pounds brought $154 to $159.50. Medium and Large 1 feeder heifers weighing 550 to 577 pounds brought $146 to $156.50 and feeder heifers from 634 to 645 pounds brought $154 to $158.

Estimated cattle slaughter is 120,000 head, up 1,000 on the week but down 1,000 on the year.

Lean hog futures were lower, unable to follow through on the early mostly higher trade with cash steady to lower during the session. Traders were also waiting for the delayed export sales report, out Friday morning. October was down $1.90 at $85.47, and December was $1.07 lower at $79.47.

Cash hogs closed lower. The industry continues to monitor the availability of market-ready barrows and gilts.  Demand for US pork on the global market and domestically has helped provide a lot of price support, and the industry hopes that to continue. Barrows and gilts at the National Daily Direct closed $1.75 lower with a weighted average of $86.42; the Iowa/Minnesota had a weighted average of $89.19; the Western Cornbelt closed with a weighted average of $89.02. The Eastern Cornbelt was not reported due to confidentiality.

Butcher hogs at the Midwest cash markets were steady at $70.

At Illinois, slaughter sow prices were steady with good demand for moderate to heavy offerings at $63 to $80.  Barrow and gilt prices were steady with moderate demand for moderate offerings at $54 to $62.  Boars ranged from $15 to $40.  

Pork values closed lower, down $1.70 at $108.70. Loins closed sharply higher, hams and butts closed sharply lower, picnics, ribs and bellies closed lower.

Estimated hog slaughter is 478,000 head, even on the week but down 8,000 on the year.