Market News

Hog futures lower on profit-taking

At the Chicago Mercantile Exchange, live cattle closed lower, pressured by this week’s lower cash trade.  Feeder cattle were lower on the same factors.  February live cattle closed $.47 lower at $126.12 and April live cattle closed $1.07 lower at $126.42.  January feeder were unchanged at $145.42 and March feeder closed $.35 lower at $144.82. 

A light to moderate direct cash cattle trade developed on Thursday.  Live deals in the South were at $123 to $124, mostly at $124, fully steady with last week’s averages.  Dressed trade in the North have been reported at $197 to $200, mostly $199, generally $1 lower than last week’s weighted average basis.  There is still a possibility of some cleanup business before the end of the week.

At the Huss Livestock Market in Nebraska, compared to last week steers 550 to 700 pounds were steady to $2 higher and steers over 700 pounds were $1 to $3 lower.  Heifers over 550 pounds were steady to $2 lower.  The USDA says demand was good from the buyers in the crowd.  Receipts of 5,507 head were up on the week and the year.  Feeder supply included 60 percent steers and 78 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 697 pounds brought $148.75 to $157.50 and feeder steers 751 to 788 pounds brought $144 to $153.10.  Medium and Large 1 feeder heifers 650 to 695 pounds brought $139 to $144.75 and feeder heifers 700 to 743 pounds brought $137.50 to $143. 

Boxed beef closed firm to higher on moderate to fairly good demand and moderate offerings.  Choice closed $.37 higher at $212.90 and Select closed $1.80 higher at $211.47.  Estimated cattle slaughter is 122,000 head – even on the week and the year. 

Lean hog futures closed lower on profit-taking and pressure from lower cash prices.  Thursday’s export sales report was average, when the industry continues to expect larger numbers.  February lean hogs closed $1 lower at $66.87 and April lean hogs closed $1.20 lower at $73.77. 

Cash hogs weak to lower with fairly strong negotiated purchases.  Heavy supplies are limiting the market’s ability to push prices higher.  While the industry is hopeful demand for US pork will see big surges on the global market, the cash trade is taking a wait and see approach.  Once those purchases start surfacing, prices will likely start pushing higher.  Until then, expect the guarded optimism to continue.  Barrows and gilts at the National Daily Direct closed $.58 lower with a base range of $46 to $52 for a weighted average of $51.18; the Iowa/Southern Minnesota closed $.94 lower for a weighted average of $51.04; the Western Corn Belt closed $1.07 lower for a weighted average of $50.83; the Eastern Corn Belt had no comparison but a weighted average of $51.42. 

Pork values closed firm – up $.80 at $75.45.  Bellies, ribs, hams, and loins were all firm to higher.  Picnics and butts were weak to lower.  Estimated hog slaughter is 497,000 head – up 2,000 on the week and up 24,000 on the year.