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Hog futures lower on profit-taking

At the Chicago Mercantile Exchange, live cattle ended the day lower, pressured by the recent weakness in the cash trade and weaker wholesale values.  Except for the nearby months, feeder cattle were lower on the same factors.  February live cattle closed $1.02 lower at $120.30 and April live cattle closed $1.12 lower at $118.67.  March feeder cattle closed $.50 brought $135.70 and April feeder cattle closed $.02 higher at $137.52. 

Direct cash cattle trade activity is off to a quiet start for the week.  Showlists are mixed, somewhat larger in Texas, somewhat smaller in Kansas, and lower in Nebraska and Colorado.  Bids and asking prices have yet to be established and significant trade volume will likely be delayed until the latter half of the week. 

At the midsession at the Oklahoma National Stockyards, feeder steers are trading unevenly steady and feeder heifers and heifer calves are $1 to $4 higher and steer calves are mostly $2 higher.  The USDA says demand was moderate to good, especially for those suitable for grazing.  Quality was plain to average with a few attractive.  Receipts of 7,650 head are up on the week and the year.  Feeder supply included 52 percent steers and 57 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 551 to 593 pounds brought $159 to $176 and feeder steers 633 to 648 pounds brought $143.75 to $157.50.  Medium and Large 1 feeder heifers 651 to 667 brought $129 to $132.75 and feeder heifers 704 to 744 pounds brought $124.25 to $130.75. 

Boxed beef closed lower on Choice and Steady on Select on light to moderate demand and moderate to heavy offerings.  Choice closed $1.21 lower at $208.91 and Select closed $.19 lower at $203.70.  The Choice/Select spread closed at $5.21.    

Estimated cattle slaughter is 119,000 head, down 2,000 on the week and up 1,000 on the year. 

Lean hog futures ended the day lower on profit-taking and concerns about both the short and long-term demand impact from the spread and impact of the coronavirus.  February lean hogs closed $.90 lower at $56.20 and April lean hogs closed $1.17 lower at $65.07. 

Cash hogs closed steady to firm with moderate negotiated purchases.  The industry continues to watch the supply and demand picture.  While optimism remains that demand for US pork will increase on the global market, heavy supplies and demand uncertainty are weighing on the market’s ability to move higher.  However, fairly strong domestic demand is helping to keep prices supported – at least somewhat.  Barrows and gilts at the National Daily Direct closed $.09 higher with a base range of $44 to $53.50 for a weighted average of $50.31; the Iowa/Minnesota closed $.34 higher for a weighted average of $49.65; the Western Corn Belt closed $.28 higher for a weighted average of $49.49.  The Eastern Corn Belt waw not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $36. 

At Illinois, slaughter sow prices are $1 to $3 higher with good demand for heavy offerings at $14 to $25.  Barrow and gilt prices were steady with moderate demand for moderate offerings at $28 to $36.  Boars under 300 pounds are $14 to $18 and boars over 300 pounds brought $5 to $7. 

Pork values closed steady – up $.21 at $65.02.   Ribs, hams, and picnics closed higher.  Loins were firm.  Butts were steady.  Bellies dropped $4.47. 

Estimated hog slaughter is 496,000 head, even on the week and up 27,000 on the year. 

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