Lean hog futures higher on commercial buying

Market News

Lean hog futures higher on commercial buying

Chicago Mercantile Exchange live cattle futures were mixed and feeders were mostly higher, watching corn while getting ready for widespread direct business and Friday’s on feed numbers. December live was down $.05 at $131.72 and February was $.22 lower at $136.10. November feeders were down $.27 at $155.65 and January was up $.80 at $159.27.

Cash cattle trade was quiet across the country with a few asking prices coming in around $134 plus in the South. Asking prices didn’t establish in the North. Its likely significant trade volume will hold out until Midweek or later. Deals last week had a full range of $125 to $132, mostly $132, which was $3 higher than the previous week’s weighted averages.  Northern dressed business ranged from $204 to $209, mostly $207, $4 higher than the prior week’s weighted average basis in Nebraska. 

Boxed beef cutout values closed lower, choice $1.07 lower at $282.13 and select 69 cents lower at $266.59. The choice/select spread is $15.54.

Estimated cattle slaughter is 122,000 head, even on the week and up 2,000 on the year.

At the Tri-State Livestock Auction in McCook, Nebraska, compared to last week, steers sold $4 to $8 higher. There were too few heifers for comparison. Receipts were sharply down on the week and down on the year. USDA says demand was good. Feeder supply included 47 percent steers and 23 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 450 to 493 pounds brought $187 to $197 and feeder steers from 551 to 596 brought $166.50 to $178. Medium and Large 1 Feeder heifers weighing 459 to 483 pounds brought $156 to $166 and feeder heifers from 500 to 539 pounds brought $154.50 to $165.

Lean hog futures were supported by commercial buying. December was $1.92 higher at $77.72 and February was up $2.20 at $83.37.

Cash hogs closed lower on moderate negotiated numbers. Demand for US pork on the global market and domestically has been strong, which is expected to continue.  However, should a disruption to demand occur it would likely send prices tumbling. Processors continue to monitor the availability of market-ready hogs and remain able to move larger numbers at lower prices. Barrows and gilts at the National Daily Direct closed 44 cents lower for a weighted average of $57.37; the Western Cornbelt has a weighted average of $57.62; the Iowa/Minnesota and Eastern Cornbelt weren’t reported due to confidentiality.

Butcher hogs at the Midwest cash markets were steady at $59.

At Illinois, slaughter sow prices were $1 to $2 higher with good demand for offerings. Barrows and gilts were mostly $1 lower with light demand on moderate offerings.

Pork values close lower, down $1.47 at $92.46.

Estimated hog slaughter is 484,000 head, up 6,000 on the week but down 12,000 on the year.