Hogs gain ground on expectations of tight supplies
Cattle futures closed higher on lower corn and soybean futures. The market is still waiting on a signal from cash business. Most market movement will likely come late in the week to see if packers or feedlots blink first on the cash front while processing numbers are down for Christmas and the New Year. Strong boxed beef movement could be bullish for the cattle complex, but mostly for live cattle futures.
Cattle trade began to develop in the North Tuesday at mostly $220. That’s $3 higher than last week’s weighted average basis in Nebraska. The South remained rather quiet. More significant trade will likely develop Wednesday and Thursday.
Boxed beef closed higher. Choice boxes $.18 higher at $264.66; select boxes $.91 higher at $256.09.
Tuesday’s estimated cattle slaughter is 122,000 head, 2,000 more than last week, 4,000 more than last year.
There were a few feeder cattle sold at auction in Kentucky this past holiday-shortened week. They sold unevenly steady when compared to the prior week. Demand was moderate to good.
Medium and large #1 steers:
27 head, weighing 450 to 497, brought $150.00 to $186.00.
47 head, weighing 600 to 648, brought $135.00 to $159.00.
Medium and large #1 heifers:
54 head, weighing 450 to 498, brought $123.00 to $150.00
122 head, weighing 810 to 826, brought $140.80 to $146.00.
Hog futures closed mixed on spread trade and adjustments after last week’s strength carried into Monday. An expectation of tighter supplies in 2022 has been bullish for hogs as a whole and is continuing to carry deferred contracts but is now limiting strength in the nearbys with the action seemingly fully priced into the market.
Cash hogs closed higher on expectations of tightening supplies. National Direct barrows and gilts were up $2.02, ranging from $58.00 to $66.00, with a weighted average of $61.77. Iowa/Minnesota Direct hogs were at a weighted average of $61.96. Western Cornbelt Direct hogs were at a weighted average of $61.94. Eastern Cornbelt Direct hogs were at a weighted average of $61.68.
The pork carcass value closed higher again, up by $.56 at $86.89. Loins were $3.37 higher at $84.71; hams fell by $.81 to $60.26.
Tuesday’s hog slaughter is 480,000, 4,000 more than last week, 30,000 more than last year.