Hog futures stronger to start the short week

Market News

Hog futures stronger to start the short week

At the Chicago Mercantile Exchange, live cattle ended the day mostly lower waiting for direct cash business to develop. Feeder cattle closed higher on the lower move in corn.  August live cattle closed $.32 lower at $136.25 and October live cattle closed $.12 lower at $142.30.  August feeders closed $2.35 higher at $175.30 and September feeders closed $2.47 higher at $177.27. 

It was a relatively quiet Tuesday for direct cash cattle trade activity. A few bids did surface at $235 dressed in Nebraska, but no asking prices.  However, early asking prices in other parts of cattle country were around $142 live. Showlists this week are higher across all major feeding areas.  Looking for significant trade volume to develop Wednesday or later. 

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers under 500 pounds were steady to $6 higher.  Steers over 500 pounds were $6 to $12 higher.  Feeder heifers were $6 to $11 higher.  The USDA says supply was moderate with very good demand.  Receipts were up on the week and down on the year.  Feeder supply included 59% steers and 60% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 602 to 645 pounds brought $173 to $190 and feeder steers 901 to 941 pounds brought $159 to $164.25.  Medium and Large 1 feeder heifers 501 to 549 pounds brought $160 to $174 and feeder heifers 703 to 741 pounds brought $154 to $159. 

Boxed beef closed higher on solid demand for moderate offerings.  Choice closed $1.06 higher at $267.56 and Select closed $.31 higher at $246.70.  The Choice/Select spread is $20.86.   Estimated cattle slaughter 126,000 head – up 4,000 on the week and the year.  

Lean hog futures ended the day higher, supported by the mostly higher cash trade during the session.  July lean hogs closed $1.72 higher at $112.72 and August lean hogs closed $1.92 higher at $109.80. 

Cash hog ended the day sharply higher with a solid negotiated run.  Processors were a little more aggressive in their procurement efforts and bid up to move their desired numbers.  The industry continues to monitor the availability of market-ready hogs.  Demand for US pork has been strong on the global market, helping provide price support. Barrows and gilts at the National Daily Direct closed $4.11 higher with a base range of $110 to $124.50 and a weighted average of $118.99; the Iowa/Minnesota closed $4.38 higher with a weighted average of $122.74; the Western Corn Belt closed $4.22 higher with a weighted average of $122.82.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were $2 higher at $76. At Illinois, slaughter sow prices were steady with light demand for light offerings at $42 to $54.  Barrows and gilts were steady with light demand for light offerings at $71 to $80.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values closed lower – down $1.01 at $110.86.  Hams, bellies, and loins were all lower.  Picnics, butts, and ribs were higher. Estimated hog slaughter 468,000 head – down 1,000 on the week and down 6,000 on the year.  Monday’s hog slaughter has been revised to 449,000 head. 

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