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Hog futures mixed ahead of Hogs and Pigs report

At the Chicago Mercantile Exchange, live and feeder cattle closed lower watching direct business develop.  August lives closed $.55 lower at $132.17 and October lives closed $.50 lower at $138.90.  August feeders closed $1.10 lower at $170.72 and September feeders closed $1.17 lower at $173.77. 

There was a light to moderate direct cash cattle trade that took place on Wednesday.  Live deals in the South were at $138, that’s steady in Texas but about $1 lower than last week’s weighted averages in Kansas.  In the North, live deals were marked at $146 to $150 and $234 dressed, close to last week’s weighted average basis in Nebraska.  Look for more business to develop over the balance of the week. 

At the Hub City Livestock market in South Dakota, compared to two weeks ago, steers 850 to 900 pounds were $2 to $3 higher, and steers 1000 to 1050 pounds were steady to $3 lower.  Heifers were not well compared.  The USDA says demand was good to very good for the day’s offering of mostly loads and strings.  Cattle suitable to go to grass continue to be met with excellent demand as grass is plentiful.  Flesh is mostly moderate to moderate plus and quality is mostly average to attractive.  The market was active.  Receipts were down on the week and up on the year.  Feeder supply included 45% steers and 99% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 866 to 898 pounds brought $164.50 to $175 and feeder steers 989 to 994 pounds brought $160.25 to $163.  Medium and Large 1 feeder heifers 901 to 940 pounds brought $150.75 to $152 and feeder heifers 985 to 999 pounds brought $144 to $147.85. 

Boxed beef closed lower on light demand for moderate offerings.  Choice closed $2.26 lower at $264.88 and Select closed $2.50 lower at $240.81.  The Choice/Select spread is $24.07. Estimated cattle slaughter is 124,000 head – down 2,000 on the week and up 4,000 on the year. 

Lean hog futures ended the day mixed, adjust spreads ahead of the USDA’s Quarterly Hogs and Pigs report.  While the report appears to be bullish for prices, that will depend on feed costs and ongoing demand.  July lean hogs closed $.52 lower at $109.40 and August lean hogs closed $.25 lower at $103.57. 

Cash hogs closed higher with a big negotiated run.  Processors started the day very aggressive in their procurement efforts and bid up to move their desired numbers.  Demand for US pork on the global market and domestically has been strong, helping provide support to prices.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $1.40 higher with a base range of $110 to $125 and a weighted average of $121.18; the Iowa/Minnesota closed $1.04 higher with a weighted average of $123.64; the Western Corn Belt closed $.72 higher with a weighted average of $123.43.  Prices at the Eastern Corn Belt were not reported due to confidentiality.    

Butcher hog prices at the Midwest cash markets are steady at $77. At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $40 to $52.  Barrows and gilts were steady with moderate demand for moderate offerings at $73 to $82.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values closed higher – up $3.09 at $108.56.  Bellies ended the day nearly $17 higher.  Loins, picnics, and butts were higher to sharply higher.  Hams and ribs were lower to sharply lower. Estimated hog slaughter 466,000 head – down 3,000 on the week and up 4,000 on the year. 

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