Market News

Hog futures mostly lower ahead of Thursday’s report

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower watching corn and watching direct cash business develop.  October live cattle closed $.52 lower at $143.05 and December live cattle closed $.62 lower at $146.27.  October feeder cattle closed $1.12 lower at $175 and November feeder cattle closed $1 lower at $175.27. 

A light to moderate trade developed across all feeding areas on Wednesday.  Live deals in the North were at mostly $228, with a few at $230.  Those were $1 lower to $1 higher than last week’s weighted average basis in Nebraska.  Live deals ranged from $143 to $145.  Asking prices were at $144 to $145 live in the South and $231 plus dressed in the North.  There was a light trade on Tuesday in Kansas and Texas at $143, fully steady with last week’s weighted averages.

At the Kingsville Livestock Auction in Missouri, compared to last week, the majority of steers under 800 pounds were $5 to $10 higher.  Steers over 800 pounds were $3 to $5 higher.  The USDA says steer quality was excellent and that was the big driver behind the market.  Heifers were firm to $3 higher.  Demand was good for a heavy supply.  There were more calves in the offering this week as drier conditions are pushing some producers to move cattle earlier than normal.  Receipts were up on the week and the year.  Feeder supply included 41% steers and 51% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 697 pounds brought $192 to $197.25 and feeder steers 811 to 845 pounds brought $177 to $186.75.  Medium and Large 1 feeder heifers 662 to 698 pounds brought $174.75 to $186.75 and feeder heifers 704 to 726 pounds brought $170 to $179.75. 

Boxed beef closed lower on light demand for solid offerings.  Choice closed $.88 lower at $247.55 and Select closed $2 lower at $219.21.  The Choice/Select spread is $28.34. 

Estimated cattle slaughter was 127,000 head – even on the week and up 9,000 on the year. 

Lean hog futures ended the day mostly lower ahead of Thursday’s Quarterly Hogs and Pigs report.  October lean hogs closed $.67 higher at $89.37 and December lean hogs closed $.42 lower at $75.82. 

Cash hogs closed mixed with a moderate negotiated run.  All eyes locked on Thursday’s Quarterly Hogs and Pigs report to see if the herd has stabilized or is starting to show signs of growth.  There is a lot of attention being paid to the supply side of things.  The industry continues to monitor the availability of market-ready hogs.  Processors had a big day on Tuesday and are now looking to move needed numbers at lower money. 

Barrows and gilts at the National Daily Direct closed $4.09 lower with a base range of $82 to $102 and weighted average of $93.28; the Iowa/Minnesota closed $2.49 lower with a weighted average of $96.92; the Western Corn Belt closed $2.47 lower with a weighted average of $96.92; the Eastern Corn Belt closed $.75 higher with a weighted average of $91.96.

Butcher hog prices at the Midwest cash markets are $2 lower at $64.

At Illinois, slaughter sow prices were steady with light demand for light offerings at $58 to $70.  Barrows and gilts were steady with moderate demand for moderate offerings at $60 to $69.  Boars ranged from $39 to $41 and $9 to $19

Pork values closed higher – up $1.76 at $98.76.  Bellies were sharply higher.  Picnics, ribs, butts, and loins were all higher.  Hams were lower. 

Estimated hog slaughter was 484,000 head – even on the week and up 17,000 on the year.