Market News

Hog futures higher on an oversold bounce

At the Chicago Mercantile Exchange, live and feeder cattle closed lower watching the week’s direct cash business develop.  February live cattle closed $1.10 lower at $136.57 and April live cattle closed $.67 lower at $140.52.  March feeder cattle closed $1.32 lower at $165.02 and April feeder cattle closed $1.35 lower at $168.77. 

There was a light direct cash cattle trade that took place on Wednesday.  Deals were mostly in the North at $218 dressed, $2 lower than last week’s weighted average basis in Nebraska.  Live deals were at $135 to $138.  Look for some additional business to develop over the balance of the week.  Tuesday’s deals were from $136 to $137 live in the South.  Wednesday’s Fed Cattle Exchange was a non-starter with an offering of 3,056 head, with just 379 actually sold at $137 and $129. 

At the Interstate Regional Stockyards in Missouri, compared to last week feeder steers under 650 pounds were $2 to $6 higher and steers over 650 pounds were nearly steady.  Feeder heifers under 600 pounds were $3 to $8 higher and heifers over 600 pounds were steady to $2 higher.  The USDA says demand was good to very good and supply was moderate.  There were several good quality, light cattle on offer this week.  Receipts were down on the week and the year.  Medium and Large 1 feeder steers 458 to 499 pounds brought $184 to $208 and feeder steers 550 to 598 pounds brought $170 to $186.  Medium and Large 1 feeder heifers 554 to 592 pounds brought $149 to $158 and feeder heifers 600 to 635 pounds brought $145 to $156. 

Boxed beef closed higher on solid demand for heavy offerings.  Choice is $1.71 higher at $279.93 and Select is $2.35 higher at $270.98.  The Choice/Select spread is $8.95. Estimated cattle slaughter is 114,000 head – up 1,000 on the week and down 4,000 on the year. 

Lean hog futures closed higher on oversold signals with additional support from higher pork values.  February lean hogs closed $1 higher at $78.85 and April lean hogs closed $1.20 higher at $85.40. 

Cash hogs closed lower with a moderate negotiated run.  The industry continues to monitor the availability of market-ready hogs.  For the most part, processors have been a little more aggressive in their procurement efforts recently.  Demand for US pork on the global market has been strong and that is expected to continue.  However, there is some long-term concern, which has put some pressure on prices.  Hog weights this week increased to 292.2 pounds, up from 291.4 pounds last week, but down from 293.1 pounds on the year. Barrows and gilts at the National Daily Direct closed $.92 lower with a base range of $62 to $70 with a weighted average of $66.07; the Iowa/Minnesota had a weighted average of $69.38; the Western Corn Belt had a weighted average of $69.17; the Eastern Corn Belt had a weighted average of $64.58.

Butcher hog prices at the Midwest cash markets are steady at $44. At Illinois, slaughter sow prices were steady with good demand for very heavy offerings at $31 to $46.  Barrows and gilts were steady with moderate demand for heavy offerings at $40 to $47.  Boars ranged from $15 to $22 and $10 to $15. 

Pork values closed higher up $2.84 at $84.46.  Bellies and hams were both sharply higher.  Butts and picnics were both sharply lower.  Ribs and loins were lower. Estimated hog slaughter is 433,000 head – down 30,000 on the week and down 61,000 on the year.