Market News

Hog futures higher on oversold signals

At the Chicago Mercantile Exchange, live cattle were lower and feeders were mostly lower watching direct business develop.  February live cattle closed $.87 lower at $137.80 and April live cattle closed $.65 lower at $141.22.  January feeder cattle closed $.67 higher at $164.07 and March feeder cattle closed $.80 lower at $165.07. 

There was a light to moderate direct cash cattle trade that took place on Thursday.  Live deals were at $140 in the South, roughly $2 lower than the bulk of last week’s business and $138 to $139 in Nebraska.  Dressed deals in Nebraska were marked at $220, fully steady with last week’s trade, those are marked for delayed delivery.  Asking prices for cattle left on showlists are firm at $142 to $145 live and $225 plus dressed in the North.  Thursday’s Fed Cattle Exchange had an offering of 1,708 head, of which 278 actually sold, at $140.  Look for cleanup trade to take place on Friday. 

At the Huss Livestock Market in Nebraska, compared to last week feeder steers 650 to 850 pounds were unevenly steady and heifers 600 to 750 pounds were steady to $2 higher.  The USDA says demand was good from the buyers in the crowd.  Receipts were up on the week and the year.  Feeder supply included 55% steers and 72% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 700 to 744 pounds brought $165.75 to $171 and feeder steers 854 to 879 pounds brought $164.35 to $167.  Medium and Large 1 feeder heifers 614 to 640 pounds brought $156.25 to $165.75 and feeder heifers 655 to 696 pounds brought $156 to $166.25. 

Boxed beef closed mixed on light to moderate demand for solid offerings.  Choice closed $.44 higher at $264.55 and Select closed $1.41 lower at $251.68.  The Choice/Select spread is $12.87. Estimated cattle slaughter is 122,000 head – down 1,000 on the week and up 2,000 on the year. 

Lean hog futures ended the day higher on oversold signals, sharply higher cash business, and firm midday pork.  December lean hogs closed $1.60 higher at $72.42 and February lean hogs closed $1.77 higher at $77.82. 

Cash hogs closed higher with a solid negotiated run.  Processors bid up to move their desired numbers.  Demand for US pork on the global market and domestically is strong.  But, there are some long-term concerns, which has been adding pressure to prices recently.  All eyes continue to watch the availability of market-ready hogs.  Barrows and gilts at the National Daily Direct closed $2.70 higher with a base range of $56 to $67 and a weighted average of $60.46; the Iowa/Minnesota had a weighted average of $63.76; the Western Corn Belt had a weighted average of $63.58; the Eastern Corn Belt had a weighted average of $58.52. 

Butcher hog prices at the Midwest cash markets are $2 lower at $44.

Pork values closed lower – down $3.48 at $86.96.  Hams dropped more than $15 on Thursday.  Butts, picnics, and bellies were all lower to sharply lower.  Ribs and loins were higher to sharply higher.  Estimated hog slaughter is 473,000 head – down 7,000 on the week and down 24,000 on the year.