Market News

Hog futures lower to end the week

At the Chicago Mercantile Exchange, live cattle were mostly lower, and feeders were mostly higher getting ready for the USDA’s On Feed numbers. April live cattle closed $.05 higher at $165.37 and June lives closed $.20 lower at $161.07.  March feeders closed $.15 lower at $189.07 and April feeders closed $.10 lower at $193.57. 

There was another round of direct cash cattle trade activity on Friday.  Dressed deals in Nebraska were at $262, $5 higher than the previous week’s weighted averages.  Live deals in the South were at $162 to mostly $164, $4 higher than the prior week’s business. This follows the light round of business that took place on Thursday with deals marked at $164 live, $2 higher than the previous week’s weighted averages and $258 to mostly $260 dressed, $1 to $3 higher than the prior week’s weighted average basis in Nebraska. 

At the Winter Livestock Auction in Pratt, Kansas, feeder steers 500 to 950 pounds were $3 to $5 higher.  However, one load of thin-fleshed black steers weighing 818 pounds was $14 higher.  There weren’t enough steer and heifer calves on offer for an accurate market test, but a higher trend was noted.  Feeder heifers 700 to 900 pounds were $1 to $2 higher.  Heifers 500 to 700 pounds were $8 to $10 higher.  The USDA says demand was good.  Receipts were up on the week and down on the year.  Feeder supply included 57% steers and 89% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 754 to 792 pounds brought $179 to $187 and feeder steers 851 to 891 pounds brought $178.75 to $186.  Medium and Large 1 feeder heifers 678 to 698 pounds brought $178 to $180.50 and feeder heifers 760 to 771 pounds brought $170 to $176.50.

The hay market in Missouri is starting to slow down.  There have been a few listings of decent quality hay show up at lower prices as many producers’ hay needs are likely met for the rest of the feeding season.  Some farmers are still looking to move inventory.  The supply is light, demand is moderate, and prices are steady.  Alfalfa, supreme, medium squares brought $250 to $300.  Alfalfa, supreme, small squares brought $10 to $15.  Alfalfa, premium, medium squares brought $180 to $250.  Alfalfa, good, large rounds brought $150 to $180.  Alfalfa, good, small squares brought $5 to $9.  Alfalfa, fair, large rounds brought $125 to $150.  Alfalfa/grass mix, good/premium, small squares brought $5 to $9.  Mixed grass, good/premium large rounds brought $125 to $175.  Mixed grass, fair/good, large rounds brought $100 to $150.  Mixed grass, fair/good, small squares brought $5 to $8.  Mixed grass, fair, large rounds brought $50 to $100. 

Boxed beef closed mixed on light to moderate demand for light offerings.  Choice was $.63 lower at $287.28 and Select closed $1.21 higher at $277.08.  The Choice/Select spread is 10.20. Estimated cattle slaughter was 122,000 head – up 1,000 on the week and up 5,000 on the year.  Saturday’s estimated kill is 18,000 head – up 11,000 on the week and down 32,000 on the year. 

Lean hog futures ended the day lower ahead of Cold Storage numbers from the USDA with additional pressure from lower pork values. April lean hogs closed $.17 lower at $86.02 and May lean hogs closed $.60 lower at $95.35. 

Cash hogs closed mixed with a moderate negotiated run.  Processors continue to move hogs at their own pace, bidding up when they need to get more aggressive in their procurement efforts and backing off when they don’t.  It was a relatively strong week for Export Sales for pork.  Demand has been strong on the global market, helping provide at least some price support.  However, should a disruption on the global market occur, it could impact demand and weaken prices.  The industry also continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.15 higher with a base range of $69 to $79 and a weighted average of $77.68; the Iowa/Minnesota closed $.51 lower with a weighted average of $78.04; the Western Corn Belt closed $.72 lower with a weighted average of $77.72.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig Report, early-weaned pigs were $1 per head lower and feeder pigs were $4 per head higher.  Demand was good on moderate offerings.  The Total Composite Cash Range was $44 to $72 with a weighted average of $60.29.  The Total Composite Formula Range was $48.86 to $65.21 and a weighted average of $54.83.  The weighted average for all early-weaned pigs was $58.30 and the weighted average for all feeder pigs was $86.38. 

Midwest butcher hog markets are closed today. At Illinois, slaughter sow prices were $2 higher with moderate demand for moderate offerings at $50 to $62.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boras ranged from $15 to $20 and $10 to $13. 

Pork values closed lower, down $.68 at $85.24.  Ribs, hams, butts, and loins were lower.  Bellies and picnics were higher. Estimated hog slaughter was 467,000 head – down 11,000 on the week and down 5,000 on the year.  Saturday’s estimated kill is 167,000 head – up 60,000 on the week and up 41,000 on the year.