Market News
Hog futures lower ahead of Quarterly Hogs and Pigs report from the USDA
At the Chicago Mercantile Exchange, live and feeder cattle were higher waiting for direct business to develop, feeder cattle had additional support from the day’s drop in the corn market. April live cattle closed $.60 higher at $140.90 and June live cattle closed $1.70 higher at $138.47. April feeder cattle closed $3.52 higher at $164.35 and May feeders closed $4.32 higher at $169.40.
It was a relatively quiet Tuesday for direct cash cattle trade activity. Bids failed to surface. Asking prices were at $140 live in the South, while the North remained quiet. Look for significant trade volume to develop Wednesday or later.
At the Tri-State Livestock Auction in Nebraska, compared to last week steers were steady to $5 higher, except for steers over 900 pounds, which were $4 lower. Heifers were steady. The USDA says demand was good on a good selection offered. Receipts were up on the week and the year. Feeder supply included 62% steers and 74% of the offering was over 600 pounds. Medium and Large 1 feeder steers 866 to 898 pounds brought $149.50 to $154.75 and feeder steers 913 to 946 pounds brought $145.75 to $147. Medium and Large 1 feeder heifers 667 to 693 pounds brought $152.75 to $162 and feeder heifers 931 to 939 pounds brought $132.50 to $133.25.
Boxed beef closed mixed with light to moderate demand for light offerings. Choice closed $.63 higher at $264.50 and Select closed $1.48 lower at $254.84. The Choice/Select spread is $9.66. Estimated cattle slaughter is 125,000 head – up 2,000 on the week and up 6,000 on the year. Monday’s cattle slaughter has been revised to 119,000 head.
Lean hog futures ended the day lower on position squaring ahead of Wednesday’s Quarterly Hogs and Pigs report from the USDA. April lean hogs closed $1.52 lower at $106.05 and May lean hogs closed $.52 lower at $118.77.
Cash hogs ended the day lower with a solid negotiated run. Demand for US pork on the global market and domestically has been strong and while that has been helping to provide price support, there are long-term demand concerns adding volatility to prices. Processors have been able to move their desired numbers without having to aggressively bid up. The industry has all eyes on the availability of market-ready hogs and Wednesday’s Quarterly Hogs and Pigs report from the USDA. Barrows and gilts at the National Daily Direct closed $1.96 lower with a base range of $98 to $109 with a weighted average of $103.93; the Iowa/Minnesota closed $.89 lower with a weighted average of $107.54; the Western Corn Belt closed $1.63 lower with a weighted average of $106.76. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $80. At Illinois, slaughter sow prices were $1 higher with moderate demand for moderate offerings at $78 to $89. Barrows and gilts were steady with moderate demand for moderate offerings at $66 to $73. Boars ranged from $40 to $45 and $20 to $25.
Pork values closed sharply lower – down $3.47 at $103.94. Bellies dropped $15 on Tuesday. Hams were sharply lower and picnics and loins were lower. Butts and ribs were higher. Estimated hog slaughter is 479,000 head – even on the week and down 9,000 on the year.
