Market News

Lean hogs end with triple digit gains

There was limited activity in the cash cattle trade on Wednesday afternoon with just a few preliminary bids noted in parts of Nebraska at 232.00 to 233.00, and Kansas and Texas at 142.00. Asking prices are around 148.00 in the South and 238.00 plus in the North. Significant trade volume may not develop until Thursday or Friday. The kill totaled 115,000 head, even with last week, but 9,000 less than last year.

Boxed beef cutout values were higher on moderate demand and moderate offerings. Choice beef was up 1.43 at 232.64, and select was 1.05 higher at 220.67.

Chicago Mercantile Exchange live cattle contracts settled 15 to 52 points higher. There was narrowly mixed trade for much of the session as traders exited the soon to expire April market and move into the June and August futures contracts. The April was able to sustain price levels above the 143.00 per hundredweight threshold. Higher boxed beef values were supportive to the summer contracts. April settled .22 higher at 143.92, and June was up .12 at 135.10.

Feeder cattle ended the session 17 to 32 points higher. The moderate gains held across the feeder cattle complex despite the firming tone of the corn markets and the lack of strong buyer interest in the live cattle market. Traders continue to look for additional direction from outside markets and potential additional insight into the upcoming cattle on feed report due for release Friday. May settled .27 higher at 178.62 and August was up .17 at 182.45.

Feeder cattle receipts at the Philip livestock Auction at Philip, South Dakota totaled 2871 head on Tuesday. Sales have not been reported recently so no price comparison can be made. There was good demand for a long string and many part loads and packages of feeder steers. Feeder and replacement heifers sold on an active to very active market. 779 pound feeder steers averaged 180.01 per hundredweight. 179 head of replacement heifers weighing 779 pounds brought an average of 187.48.

Lean hogs settled 35 to the 300 point limit higher. The firmness in both the cash values and pork carcass values in the morning report helped to redevelop buyer support. May settled 2.95 higher at 123.97, and June was up 3.00 at 126.25.

Barrows and gilts in the Iowa/Minnesota direct trade closed .48 higher at 116.20 weighted average on a carcass basis, the West was up 1.27 at 115.77, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 105.00 to 107.00. Midwest barrows and gilts closed steady to 2.00 instance 4.00 lower from 78.00 to 90.00 on a live basis.

The pork carcass cutout value closed .32 higher at 117.41 FOB plant.

While summer lean hog futures remain far below the highs of the first quarter, steadily growing premiums over spring cash clearly reflect friendly price expectations, both in terms of tightening seasonal supplies and improving pork demand.

The hog kill was estimated at 418,000 head, 6,000 more than last week and the same as last year.

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