Hog futures continue upward trend to close week

Market News

Hog futures continue upward trend to close week

Cattle future traded mixed to lower with sideways action for a lot of the day watching little cash trade and light box movement. Live cattle contracts saw profit taking to close the week. Feeder cattle futures were mixed with the nearbys lower and defferds higher.

Direct cash cattle trade was quiet to close the week. The week’s business came in at $142 in the South, $2 higher than last week’s weighted averages. Northern dressed trade took place at $226, $2 higher than last week’s weighted average basis in Nebraska.

Boxed beef cutout values closed lower on light offerings. Choice is $3.74 lower at $265.85 and select is $2.22 lower at $262.63. The Choice/Select spread is $3.22.

At the Douglas County Livestock Auction in Ava, Missouri, compared to last week, feeder steers under 700 pounds were mostly steady to firm with steers at 550 pounds selling $6 higher. Steers over 700 pounds had a steady undertone on a light comparison. Feeder heifers were unevenly steady from $3 lower to $2 higher. USDA says demand was moderate on a light supply. Receipts were down on the week but up on the year. Feeder supply included 52 percent steers and 34 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 500 to 545 pounds brought $185 to $207 and steers from 602 to 649 pounds brought $167.50 to $180. Medium and Large 1 feeder heifers weighing 500 to 548 pounds brought $156 to $167.50 and heifers from 600 to 630 pounds brought $150 to $154.

Estimated cattle slaughter is 121,000 head. That’s up 1,000 on the week and 13,000 on the year.

Lean hog futures continued their strong push following cash business despite a lower move in pork.

Cash hogs closed with light negotiated purchases. Processors continue to monitor the availability of market-ready barrows and gilts.  Demand has been strong for US pork on the global market and domestically, which has helped provide some price support.  However, there are long-term demand concerns which has been putting some additional pressure on prices. Barrows and gilts at National Daily Direct had no comparison but closed with a base range of $82 to $100 for a weighted average of $86.78. The regional direct markets were not reported due to confidentiality.  

Pork values closed lower, down $6.63 at $109.91. Hams closed more than $17 lower; loins, picnics, and bellies are lower; ribs and butts are higher.

Estimated hog slaughter is 474,000 head. That’s even on the week and down 10,000 on the year.