Market News
Hog futures mostly lower heading into Friday
At the Chicago Mercantile Exchange, live cattle ended the day mostly lower and feeders were higher watching corn, and direct cash business develop. December live cattle closed $.12 lower at $131.87 and February live cattle closed $.42 lower at $136.40. November feeder cattle closed $.67 higher at $157.32 and January feeder cattle closed $1.02 higher at $159.07.
IIt was a relatively quiet Thursday for direct cash cattle trade activity following the light to moderate business that took place on Wednesday. There were a few scattered deals reported at generally steady money with the week’s business. Deals this week have been at $131 to mostly $132 live, $3 higher than last week’s weighted averages. Northern dressed business has had a full range of $205 to $207, mostly $207, $4 higher than last week’s weighted average basis in Nebraska. Bids were renewed at $132 live and $207 dressed. Asking prices were firm at $134 live in the South and $208 dressed in the North. Look for some additional business to take place on Friday.
At the Springfield Livestock Market in Missouri, compared to last week feeder steers 600 pounds and lighter sold steady to $3 higher and feeder steers 700 pounds and heavier were up to $13 higher compared to last week’s light test. Feeder heifers 600 pounds and under were unevenly steady from $4 lower to $2 higher and heifers 700 pounds and up sold with a firm undertone. The USDA says there were several large runs of high-quality weaned yearlings on offer. Demand was high for yearling feeders and light to moderate for calves of varying quality. Receipts were up on the week and down on the year. Feeder supply included 47% steers and 43% of the offering was over 600 pounds. Medium and Large 1 feeder steers 605 to 645 pounds brought $150 to $153 and feeder steers 650 to 683 pounds brought $146 to $155. Medium and Large 1 feeder heifers 500 to 543 pounds brought $135 to $139 and feeder heifers 761 to 774 pounds brought $141 to $148.
Boxed beef closed mixed on light to moderate demand for solid offerings. Choice closed $.38 lower at $285.14 and Select closed $.67 higher at $267.29. The Choice/Select spread is $17.85. Estimated cattle slaughter is 117,000 head – down 5,000 on the week and down 3,000 on the year.
Lean hog futures ended the day mixed, adjusting spreads ahead of Friday’s export sales numbers. December lean hogs closed $.32 lower at $75.37 and February lean hogs closed $.25 lower at $79.07.
Cash hogs closed firm with light negotiated purchases. Supplies of market-ready barrows and gilts have been more than ample. The industry has been able to move big numbers at lower prices recently. Demand for US pork on the global market and domestically has been strong, however, there are long-term demand concerns which is adding pressure to prices. If a disruption occurred it would likely send prices tumbling. Barrows and gilts at the National Daily Direct closed $.17 higher with a base range of $57 to $60 and a weighted average of $58.26; the Iowa/Minnesota had a weighted average of $58.29; the Western Corn Belt had a weighted average of $58.37. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are $1 lower at $59.
Pork values closed sharply higher – up $5.23 at $95.80. Hams ended the day nearly $24 higher. Loins were also sharply higher. Ribs were higher. Butts, picnics, and bellies were lower to sharply lower. Estimated hog slaughter is 449,000 head – down 28,000 on the week and down 37,000 on the year.
