Market News

Hog futures mixed, waiting on trade news

At the Chicago Mercantile Exchange, live cattle ended the day higher on expectations of higher cash trade.  Feeder cattle were higher on the same factors with additional support from the day’s lower move in corn.  Contracts are at a discount to cash.  December live cattle closed $.70 higher at $120.57 and February live cattle closed $.75 higher at $125.32.  January feeder cattle closed $1.12 higher at $142.77 and March feeders closed $1.15 higher at $143.67. 

Direct cash cattle trade activity remains quiet this afternoon.  Bids have yet to surface and asking prices are at $121 to $122 live in the South and $192+ dressed in the North.  Higher cash cattle trade is expected again this week – so it’s likely significant trade volume could be delayed. 

At the Kingsville Livestock Auction in Missouri, compared to last week, steers and heifers sold steady to $5 higher with some impressive strength at the end of the day.  Heifers 500 to 600 pounds were the exception, trading $5 lower.  There were large price swings that depended on quality and condition.  The USDA says demand was uneven from moderate to very good.  Receipts of 3,038 head were down on the week.  Feeder supply included 56 percent steers and 55 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 602 to 640 pounds brought $146 to $157 and feeder steers 751 to 763 pounds brought $150 to $160.25.  Medium and Large 1 feeder heifers 604 to 629 pounds brought $126 to $138.75 and feeder heifers 704 to 745 pounds brought $136.50 to $148. 

Boxed beef closed lower to sharply lower on light demand and moderate to heavy offerings.  Choice closed $2.84 lower at $218.65 and Select closed $1.63 lower at $203.72.  The Choice/Select spread closed at $14.93.   Estimated cattle slaughter is 122,000 head, up 5,000 on the week and up 1,000 on the year. 

Lean hog futures ended the day mixed on spread adjustments and waiting for progress on a USMCA vote and news on tariffs with China.  December lean hogs closed $.22 higher at $60.70 and February lean hogs closed $.25 lower at $67.72. 

Cash hogs closed steady with very large negotiated purchases.  Packers had to bid up this afternoon in order to move their desired numbers.  While the demand picture has had some positive news recently, the heavy supplies are limiting the market’s ability to move higher.  The industry continues to wait for China and other parts of the world to significantly increase their demand for US pork as they struggle to meet their own pork and protein needs as African swine fever has decimated their pork supply, but that has yet to happen.  If it does – that will likely help to push cash prices higher for a prolonged period of time.  Barrows and gilts at the Iowa/Southern Minnesota closed $.11 higher for a weighted average of $47.72; the Western Corn Belt closed $.11 higher for a weighted average price of $47.70; the Eastern Corn Belt had no comparison but a weighted average of $47.90; and the National Daily Direct closed $.21 higher with a base range of $42 to $45 for a weighted average of $47.79. 

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

Pork values closed steady – up $.07 at $83.19.  Sharply higher bellies were offset by sharply lower picnics.  Hams were firm.  Ribs, loins, and butts were weak to lower.  Estimated hog slaughter is 495,000 head, up 1,000 on the week and up 20,000 on the year.  Tuesday’s hog slaughter has been revised to 488,000 head.