Market News

Hog futures mostly higher on demand optimism

At the Chicago Mercantile Exchange, live cattle ended the day lower, waiting for details of the phase one trade agreement with China.  Feeder cattle closed mostly lower on the same factors, but optimism about demand potential did provide a boost for deferred months.   February live cattle closed $.25 lower at $126.60 and April live cattle closed $.37 lower at $127.50.  January feeder cattle closed $.47 lower at $145.42 and March feeder closed $.55 lower at $145.17. 

Direct cash cattle trade activity was fairly quiet again.  Bids remain elusive.  Asking prices are around $126 to $127 live in the South and $202 to $205 plus in the North.  There were a handful of deals reported, but not near enough to establish a trend.  Significant trade volume will likely be delayed until sometime Thursday or Friday. 

At the Kingsville Livestock Auction in Missouri, compared to last week steer calves under 700 pounds were steady and heavier weights were too lightly tested for a price trend.  Heifers sold mostly steady to $5 lower following last week’s sharply higher market.  The USDA says the supply was light and demand was moderate.  Feeder supply included 45 percent steers and 50 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 607 to 646 pounds brought $152 to $160 and feeder steers 725 to 744 pounds brought $137.25 to $140.75.  Medium and Large 1 feeder heifers 566 to 595 pounds brought $135.50 to $145 and feeder heifers 606 to 642 pounds brought $133.75 to $143.25. 

Boxed beef closed steady to weak on light to moderate demand and moderate to heavy offerings.  Choice closed $.23 lower at $212.53 and Select closed $.63 lower at $209.67.   Estimated cattle slaughter is 122,000 head even on the week and the year. 

Lean hog futures ended the day mostly higher on demand optimism following the signing of the phase one trade deal with China with additional support from higher wholesale values during the session.  February lean hogs closed $.20 higher at $67.87 and April lean hogs closed $.02 lower at $74.97.   

Cash hogs closed firm with strong negotiated numbers.  Packers had to work a little harder to move their desired numbers.  The Phase One trade deal commits to large purchases of US agricultural goods across several different commodities.  However, tariffs still remain.  The industry is still hopeful demand for US pork will see a big boost on the global market as the global protein supply continues to tighten.  As US pork production is expected to increase, demand will be a vital piece of the puzzle to keep prices supported.  Barrows and gilts at the National Daily Direct closed $.27 higher with a base range of $46 to $53 for a weighted average of $51.68; the Iowa/Southern Minnesota closed $.29 higher for a weighted average of $51.80; the Western Corn Belt closed $.30 higher for a weighted average of $51.81. 

Butcher hog prices at the Midwest Cash Markets are steady at $36. 

Pork values firm – up $.36 at $74.65.  Bellies, picnics, and butts all closed higher.  Hams were firm.  Ribs and loins were weak to lower. Estimated hog slaughter is 498,000 head – even on the week and up 21,000 on the year.