Market News

Hog futures lower on profit-taking

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower on follow-through selling, the decline in exports sales, and the recent run-up in corn.  April live cattle closed $.50 lower at $121.60 and June live cattle closed $.40 lower at $119.65.  April feeder cattle closed $1.10 lower at $140.05 and May feeder cattle closed $1 at $144.42. 

There was a light to moderate direct cash cattle trade on Thursday.  Live deals in the South were at $120 to $121, about steady to $.50 higher than last week’s business.  Dressed deals in Eastern Nebraska were at mostly $196, roughly $1 higher than last week’s weighted averages.  Some live deals were reported at $123.  Asking prices are at $122 to $124 live in the South and $200 to $205 dressed in the North.

At the Huss Livestock Market in Nebraska, compared to two weeks ago steers under 700 pounds were $10 to $12 higher and steers over 700 pounds were steady to $4 higher.  Heifers under 650 pounds were $10 to $15 higher and heifers over 650 pounds were $2 to $5 higher.  The USDA says demand was good from start to finish.  It was a very large sale with a variety of type, condition, and quality throughout the day.  Receipts were up on the week and feeder supply included 57 percent steers and 79 percent of the offering over 600 pounds.  Medium and Large 1 feeder steers 652 to 698 pounds brought $156 to $169 and feeder steers 802 to 841 pounds brought $138.50 to $148.50.  Medium and Large 1 feeder heifers 656 to 698 pounds brought $141.50 to $147 and feeder heifers 712 to 745 pounds brought $136.25 to $142.50. 

Boxed beef closed higher to sharply higher on good demand for moderate offerings.  Choice is $3.71 higher at $276.62 and Select is $1.12 higher at $268.43.  The Choice/Select spread is $8.19.  Estimated cattle slaughter is 114,000 head – down 5,000 on the week and up 24,000 on the year. 

Lean hog futures ended the day lower on profit-taking and the less than stellar export sales report.  April lean hogs closed $.20 lower at $103.40 and May lean hogs closed $3 lower at $103.57. 

Cash hogs closed higher with a solid negotiated run.  Packers continue their aggressive procurement efforts while keeping an eye on the availability of market-ready hogs.  Recent demand strength on both the global market and domestically has been very supportive to prices.  And daily slaughter totals continue at relatively high levels. Barrows and gilts at the National Daily Direct closed $1.43 higher with a base range of $99.50 to $107 and weighted average of $102.78; the Iowa/Minnesota closed $2.07 higher with a weighted average of $105.07; the Western Corn Belt closed $1.54 higher with a weighted average of $102.92.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 lower at $64. At Illinois, slaughter sow prices were weak with moderate to good demand for heavy offerings at $63 to $74.  Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $65 to $70.  Boars ranged from $40 to $45 and $12 to $20.  

Pork values closed sharply higher – up $3.28 at $113.37.  Bellies, loins, hams, ribs, and picnics were all sharply higher.  Butts were sharply lower.  Estimated hog slaughter is 479,000 head – down 3,000 on the week and up 43,000 on the year.