Market News

Hog futures mixed ahead of Monday’s USDA numbers

Chicago Mercantile Exchange live cattle futures were mostly lower, nearby contracts were up and deferred months were down, getting ready for the USDA’s Cattle on Feed report. Placements were a little bit larger than expected, while on feed and marketings were close to pre-report estimates. December was $.10 higher at $122.22 and February was up $.17 at $125.80.

Feeder cattle were down with on the firm corn, also getting ready for the USDA numbers. January was $.45 lower at $144.27 and March was down $.45 at $144.37.

Direct cash cattle markets were mostly quiet. Friday’s activity was very light at $192 to $193 dressed, mostly $192, in Iowa and Nebraska. Thursday’s business was light to moderate, mostly at $120 live in the south, $1 higher than the previous week, and mainly $192 dressed in the north, up $2. That’s another round of higher business with buyers trying to make sure they had the numbers to keep chain speed running at an acceptable level ahead of the holiday slowdown. Asking prices for what’s left were $122 live and $195 dressed, with bids at $120 and $121 live and $192 dressed.

Boxed beef closed higher with moderate demand and offerings. Choice gained $.71 at $209.70 and Select was up $.04 at $201.03. The estimated cattle slaughter of 116,000 head was down 6,000 on both the week and the year.

For the week in Missouri, feeder steers and heifers were steady to $5 higher. The USDA says the supply was light moderate and receipts were down sharply on the week, partially because of weather early in the week and partially because many barns are closed until after the New Year holiday. 58% of the weekly feeder offering were steers, 39% were heifers, and 4% were bulls, and 58% of the total run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds sold at $119 to $166 and 700 to 800-pound steers were reported at $118 to $159.75. Medium and Large 1 feeder heifers weighing 500 to 600 pounds ranged from $118 to $153 and 600 to 700-pound heifers brought $107 to $150.10.

In Missouri, winter weather led to increased hay feeding, but also limited movement. The supply is moderate to heavy, with light to moderate demand and steady prices. Large rounds of supreme quality alfalfa sold at $180 to $200, with premium at $160 to $180 and good quality at $120 to $160. Large rounds of good quality mixed grass hay were pegged at $80 to $120, with fair to good quality at $60 to $80. Large rounds of good quality brome grass brought $80 to $120 and wheat hay sold at $40 to $55.

For Nebraska, compared to the previous week, dehydrated pellets were steady and sun-cured pellets were steady to $10 higher, while bales of alfalfa, grass hay, and ground and delivered forages were steady. The USDA says in-state buyer inquiry was light to moderate with good demand. In eastern and central areas of the state, good large squares of alfalfa sold at $160, with good large rounds at $100 to $105. Premium large rounds of prairie hay were pegged at $120 to $125 with good large rounds at $90 to $100. 17% protein dehydrated alfalfa pellets brought $300. In the Platte valley, good large rounds of alfalfa were reported at $105 to $110, with good large rounds of grass hay at $115. Ground and delivered alfalfa sold at $140 to $145 with ground and delivered corn stalk mix at $125 to $135. 17% protein dehydrated alfalfa pellets brought mostly $270 to $275 with a few at $285, with 15% protein sun-cured pellets at $250. In western areas, supreme large squares of alfalfa came out at $200 to $215 with premium at $180 to $195. Ground and delivered alfalfa ranged from $153 to $158. 15% protein sun-cured alfalfa pellets brought $255.

Lean hog futures were mixed ahead of Monday’s USDA Quarterly Hogs and Pigs and Cold Storage reports. Those reports are both out on the 23rd at 3 Eastern/2 Central. February was down $.30 at $70.67 and April was unchanged at $77.50.

Cash hogs were mixed, mostly lower, with a solid closing negotiated number for the major direct markets. Most buyers were able to continue their efforts to move enough numbers to feel secure with holiday supply levels. The USDA projected Saturday’s slaughter at 351,000 head, which would put the weekly kill at 2.81 million. The USMCA has passed the House, the Senate is expected to vote in January, and phase one of the trade deal with China could be signed next month. A Chinese firm expects Beijing to buy 1 million tons of frozen pork and offal during the span of a year, worth more than $2 billion.

Pork closed $.17 lower at $76.54. Loins, butts, and hams were weak to sharply lower. Butts, ribs, and bellies were firm to sharply higher. The estimated hog slaughter of 486,000 head was down 1,000 on the week, but up 12,000 on the year.

National Direct barrows and gilts closed $.03 higher at $42 to $49.04 with a weighted average of $47.81, while Iowa/Southern Minnesota was $.06 lower at $47.26 and the Western Corn Belt was down $.09 at $47.26. Illinois direct sows were $1 to $2 lower at $14 to $28 with light demand for light to moderate offerings. Barrows and gilts were weak at $27 to $34 with light to moderate demand for moderate offerings. Boars ranged from $5 to $15.

The USDA says early weaned pigs were $7 higher and all feeder pigs were $12 higher, with good to moderate demand for moderate offerings. The composite formula range on early weaned pigs was $38.50 to $71.34 with an average of $49.37 and the composite cash range was $28 to $62 with an average of $46.60, for a weighted average of $47.63 on all early weaned pigs. The composite cash range for feeder pigs was $47 to $79 for a weighted average of $65.70.