Market News

Hog futures higher to end the week

At the Chicago Mercantile Exchange, live cattle were lower and feeders were mostly lower watching corn, and the broader market.  October live cattle closed $.12 lower at $145.50 in December live cattle closed $.35 lower $150.97. October feeder cattle closed $.32 higher at $181.25 and November feeder cattle closed $.02 at $182.75

It was a relatively quiet Friday for direct cash cattle trade.  A handful of deals were reported in Western Nebraska at $143 live.  For the week, Southern live deals were at mostly $142, $1 higher than the previous week’s weighted averages.  Northern dressed business was marked at $226 to $227, about steady to $1 higher than the prior week’s weighted average basis in Nebraska. 

In Texas for the week, feeder steers and feeder heifers were mostly steady.  Trade activity and demand were moderate.  Receipts were up on the week and down on the year.  Feeder supply included 56% steers and 35% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 553 to 595 pounds brought $173.50 to $194 and feeder steers 791 to 795 pounds brought $162 to $172.50.  Medium and Large 1 feeder heifers 406 to 448 pounds brought $175 to $210 and feeder heifers 660 to 678 pounds brought $163 to $169. 

In South Dakota, compared to last week alfalfa and grass hay remain firm.  The USDA says demand was good for all types of hay and qualities of hay.  Especially for the high-testing dairy quality as drought conditions delayed first cutting and reduced tonnage.  The third cutting was light, to non-existent in some areas.  Alfalfa, supreme, large squares brought $250 to $270.  Alfalfa, good, large rounds were $210.  Alfalfa, good, large squares brought $225 to $235.  Alfalfa, fair, large rounds brought $190.  Alfalfa, utility, large rounds brought $150.  Alfalfa/grass mix, good, large squares brought $200.  Grass, utility/fair, large rounds brought $130 and large squares brought $130. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice closed $.06 higher at $252.40 and Select closed $3.30 lower at $226.65.  The Choice/Select spread is $25.75. Estimated cattle slaughter is 118,000 head – down 9,000 on the week and up 2,000 on the year.  Saturday’s estimated kill is 45,000 head – down 47,000 on the week and down 18,000 on the year. 

Lean hog futures ended the day higher, supported by technical buying.  October lean hogs closed $.85 cents at $96.90 and December lean hogs closed $.32 higher at $87.97.

Cash hog closed lower with a fairly light negotiated run.  With larger numbers of market-ready hogs moved earlier in the week, buyers were not as aggressive in their procurement efforts.  Demand for US pork on the global market and domestically has been strong, but there are long-term concerns that continue to creep in and put pressure on prices. Barrows and gilts at the National Daily Direct closed $4.25 lower with a base range of $87 to $102.50 and a weighted average of $90.86; the Iowa/Minnesota closed $.66 lower with a weighted average of $99.14; the Western Corn Belt closed $.98 lower with a weighted average of $99.82.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s latest Weekly Feeder Pig Report, early-weaned pigs were steady and all feeder pigs were $5 per head lower.  Demand was very light.  Receipts were down on the week and the year.  The Total Composite Cash Range was $21 to $44 with a weighted average of $38.20.  The Total Composite Formula Range was $36.48 to $56.36 and an average of $43.20.  The weighted average for all early-weaned pigs was $41.67 and the weighted average for all feeder pigs was $60.68. 

Butcher hog prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $58 to $70.  Barrows and gilts were $2 lower with moderate demand for moderate offerings at $65 to $74.  Boars ranged from $39 to $41 and $9 to $19. 

Pork values closed firm – up $.54 at $106.39.  Picnics, loins, butts, and hams were higher.  Ribs and bellies were lower. Estimated hog slaughter 473,000 head – down 7,000 on the week and up 2,000 on the year.  Saturday’s estimated kill is 75,000 head, down 242,000 on the week and down 111,000 on the year.