Market News

Hog futures end with limit gains

Cattle country remained at a standstill on Wednesday afternoon with significant trade volume postponed until Thursday or Friday. A few bids were reported by private sources in Nebraska at 249.00. Some asking prices are around 162.00 in the South and 260.00 plus in the North. The kill totaled 112,000 head, 2,000 more than last week, and 4,000 less than last year.

Boxed beef cutout values were steady to weak on light to moderate demand and moderate to heavy offerings. Choice beef was down .41 at 247.29, and select was up .08 at 240.34.

Live cattle contracts on the Chicago Mercantile Exchange settled 167 points higher to 50 lower in a choppy market following limit higher trade on Tuesday. The lack of aggressive buyer interest in the market is not overly concerning and is creating needed consistency at the current price levels. With the end of the month there could be some additional late-week position taking given the volatility seen over the last couple of weeks. February settled 1.12 higher at 153.95, and April was up .50 at 151.50.

Feeder cattle ended the session 112 points higher to 15 lower. Buyer support continued to develop in the morning session. Uncertainty remained in the market as to just how much additional buyer activity will develop through the end of the week. January contracts expire on Thursday, but the lack of a strong premium in front month futures could help to bring some needed stability to the market, according to DTN analysts. January was up 1.67 at 2.12.45, and March was .52 higher at 204.35.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 1849 head on Tuesday. Compared to last week, feeder steers traded 2.00 to 8.00 lower with five and six weights 10.00 to 20.00 lower. Feeder heifers trended 4.00 to 10.00 lower with 400 weights 20.00 lower. Yearlings were lightly tested. The demand was good on a light to moderate supply. Feeder steers medium and large 1 weighing 517 pounds averaged 261.91 per hundredweight. 528 pound heifers brought 236.81.

Lean hogs settled 200 to 300 points higher as hogs seemed to have taken over for the cattle complex in posting aggressive support through the market. Deferred contracts traded at or near the $3.00 limit higher. This could help to draw longer term support back into the market. February settled 2.10 higher at 71.52, and April was up 2.90 at 74.95.

There was moderate to active hog market activity with moderate to good demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .21 lower at 67.55 weighted average on a carcass basis, the West was down .67 at 67.02, and the East was .27 lower at 66.60. Missouri direct base carcass meat price is steady to 1.00 lower from 60.00 to 63.00. Midwest hogs on a lie basis are steady to 1.00 lower from 42.00 to 50.00.

The pork carcass cutout value was down 1.28 at 80.33 FOB plant with butts and hams responsible for the decline.

Assuming the Saturday kill totals around 115,000 head, the weekly hog slaughter is once again set up to exceed the comparable period in 2014 by close to 6%, a good deal more than the bearish December inventory threatened

The Wednesday hog kill was estimated at 433,000 head, 2,000 more than last week, and 59,000 greater than last year.