Hog, cattle futures under pressure

Market News

Hog, cattle futures under pressure

At the Chicago Mercantile Exchange, live and feeder cattle closed lower, pressured by the drop in the broader market.  April live cattle closed $2.45 lower at $142.30 and June live cattle closed $2.52 lower at $138.60.  March feeder cattle closed $3.67 lower at $159.10 and April feeder cattle closed $4.47 lower at $163.80. 

A light direct cash cattle trade took place on Thursday.  Deals in the South were at $142 live, fully steady with last week’s business.  A handful of dressed deals were reported in Nebraska at $227, fully steady with Wednesday’s business and $1 higher than last week’s weighted average basis in Nebraska.  Look for at least a little more business to develop over the balance of the week. 

At the Bloomfield Livestock Auction in Iowa, compared to two weeks ago steers under 700 pounds were sharply higher, while heavier steers were mostly steady to $3 higher.  Heifers under 700 pounds were $4 to $8 higher and heifers over 700 pounds were mostly $2 lower.  The USDA says demand was good for the heavy offerings, consisting of several load lots and large groups.  Feeder supply included 60% steers and 83% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 713 to 749 pounds brought $164.25 to $175.25 and feeder steers 851 to 893 pounds brought $155 to $164.  Medium and Large 1 feeder heifers 650 to 690 pounds brought $155 to $162 and feeder heifers 702 to 743 pounds brought $146 to $157.50. 

Boxed beef closed lower and sharply lower on light demand for strong offerings.  Choice closed $1.64 lower at $259.26 and Select closed $4.41 lower at $254.55.  The Choice/Select spread is $4.69. Estimated cattle slaughter is 124,000 head – up 2,000 on the week and up 3,000 on the year. 

Lean hog futures closed lower on follow-through profit-taking.  April lean hogs closed $2.50 lower at $105.52 and May lean hogs closed $2.52 lower at $110.12. 

Cash hogs closed sharply lower with a very light negotiated run.  Demand for US pork has been strong on the global market and domestically.  And while that is expected to continue, there are long-term demand concerns which adds pressure to the price picture.  Processors continue to monitor the availability of market-ready hogs.  And aren’t very aggressive in their procurement efforts. Barrows and gilts at the National Daily Direct closed $6.97 lower with a base range of $85 to $101.50 and a weighted average of $88.13.  Prices at the Regional Direct markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $55 to $66.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $60.  Boars ranged from $27 to $32 and $13 to $17.

Pork values closed sharply higher – up $5.01 at $114.13. Hams and bellies were both sharply higher.  Picnics and loins were higher.  Ribs and butts were lower to sharply lower. Estimated hog slaughter is 476,000 head – up 15,000 on the week and down 19,000 on the year. 

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