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Cattle, hog futures under pressure heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were lower watching direct cash business develop.  Feeders had additional pressure from the day’s higher move in corn.  February lean hogs closed $.85 lower at $154.85 and April lean hogs closed $.65 lower at $158.92 and January feeder cattle closed $.55 lower at $183.05 and March feeder cattle closed $.77 lower at $184.67.

A light to moderate direct cash cattle trade developed on Thursday.  Live deals in the South were at $155, steady to $.50 lower than the prior week’s weighted averages.  Dressed business was at $248 in the North, $1 higher than the previous week’s weighted average basis in Nebraska.  At least some additional cleanup trade is expected before the end of the day Friday. 

At the Springfield Livestock Marketing Center in Missouri, compared to last week, feeder steers were mostly steady to $3 higher with spots up to $5 higher.  The best test was on heifers, 400 to 550 pounds were steady to firm.  The USDA says demand was good on a moderate supply.  Receipts were down on the week and the year.  Feeder supply included 36% steers and 50% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 559 to 590 pounds brought $182 to $189 and feeder steers 662 to 690 pounds brought $169.50 to $181.  Medium and Large 1 feeder heifers 502 to 538 pounds brought $166 to $176 and feeder heifers 643 pounds brought $162. 

Boxed beef closed higher and sharply higher on strong demand for light offerings.  Choice closed $4.23 higher at $254.30 and Select closed $1.82 higher at $228.51.  The Choice/Select spread is $25.79. Estimated cattle slaughter was 122,000 head – down 4,000 on the week and even on the year. 

Lean hog futures were lower, pressured by the lower cash business and the less than stellar export numbers.  February lean hogs closed $1.75 lower at $81.65 and April lean hogs closed $1.55 lower at $89.17. 

Cash hogs closed higher with a fairly light negotiated run.  Processors didn’t start Thursday very aggressive in their procurement efforts and prices reflected that, but, later in the day they had to bid up to move their needed numbers.  The industry continues to monitor the availability of market-ready hogs and demand. Pork has been competitive on the global market, but there are concerns slowing economies could weaken demand and pressure prices. Barrows and gilts at the National Daily Direct closed $.81 higher with a base range of $74 to $83 with a weighted average of $81.44; the Iowa/Minnesota closed $1.48 higher with a weighted average of $82.90; the Western Corn Belt closed $.89 higher with a weighted average of $82.26.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are $2 lower at $58.  At Illinois, slaughter sow prices were steady with moderate to heavy demand for moderate offerings at $42 to $54.  Barrows and gilts were steady with moderate demand for moderate offerings at $56 to $66.  Boars ranged from $15 to $20 and $10 to $13. 

Pork values closed higher – up $1.22 at $85.49.  Picnics and ribs were both sharply higher.  Loins and bellies were higher.  Hams and butts were weak to lower. Estimated hog slaughter was 489,000 head – down 1,000 on the week and up 32,000 on the year. 

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