Market News

Hog futures higher on oversold signals

At the Chicago Mercantile Exchange, live cattle closed lower, and feeder cattle were mostly lower on follow-through selling and a higher dollar.  October live cattle closed $.22 lower at $106.47 and December live cattle closed $.42 lower at $110.17.  September feeder cattle closed $.62 higher at $141.70 and October feeder cattle closed $1.62 lower at $140.62. 

Another relatively quiet day for direct cash cattle trade activity.  There were a handful of deals reported in the North at $164 dressed, but that’s not near enough to establish a trend.  Early asking prices surfaced in the South around $106 plus live, but the rest of cattle country remains quiet. Significant trade volume could be delayed until at least Midweek or later. 

At the Callaway Livestock Center in Missouri, compared to last week, steer calves under 550 pounds were lightly tested, with 550 to 650-pound steers steady.  Yearling steers and heifers over 850 pounds sold with a higher undertone.  Feeder heifers 450 to 550 pounds were mostly steady, and heifers 550 to 700 pounds were not well tested.  This week’s offering included more calves weighing 500 to 650 pounds carrying flesh and sold with moderate demand.  The best demand was on three pot loads of big yearlings weighing over 850 pounds and 700 to 750 pounds.  Receipts were down on the week and up on the year.  Feeder supply included 51 percent steers and 66 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 607 to 638 pounds brought $151 to $156 and feeder steers 850 pounds brought $142.75.  Medium and Large 1 feeder heifers 628 pounds brought $135.10 and feeder heifers 868 pounds brought $136.25. 

Boxed beef closed mixed on moderate demand for moderate offerings.  Choice closed $.78 lower at $215.44 and Select closed $.48 higher at $206.30.  The Choice/Select spread is $9.14. Estimated cattle slaughter is 121,000 head – up 1,000 on the week and up 4,000 on the year. 

Lean hog futures closed sharply higher, supported by the sharply higher wholesale values during the session and oversold signals.  October lean hogs closed $2.72 higher at $68.32 and December lean hogs closed $2.55 higher at $64.10. 

Cash hogs closed sharply higher with large negotiated purchases.  Packers bid up to move their desired numbers today.  The industry remains optimistic that demand for US pork will see a big jump as the US still looks to take advantage of a shift in the global market.  However, heavy supplies continue to pressure the price picture, making it difficult for prices to see long-term improvement.  Barrows and gilts at the National Daily Direct are $3.27 higher with a base range of $58 to $67 for a weighted average of $63.26; the Iowa/Minnesota closed $2.30 higher with a weighted average of $64.43; the Western Corn Belt closed $2.31 higher with a weighted average of $64.39; the Eastern Corn Belt had no comparison, but a weighted average of $61.54. 

Butcher hog prices at the Midwest cash markets are steady at $28. At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $11 to $23.  Barrows and gilts were $2 to $4 higher with good demand for moderate to heavy offerings at $39 to $43.  Boars ranged from $1 to $3. 

Pork values closed lower – down $1.43 at $88.66.  Hams dropped more than $16 to finish the day.  The rest of the primals were higher to sharply higher.  Estimated hog slaughter is 485,000 head – even on the week and up 15,000 on the year.