Market News

Hog futures mostly lower on long-term demand uncertainties

At the Chicago Mercantile Exchange, live cattle were higher, and feeders were mixed ahead of widespread direct cash business.  February live cattle closed $.37 higher at $157.95 and April lives closed $.75 higher at $161.30.  March feeders closed $.34 higher at $183.60 and April feeders were unchanged at $187.92. 

Direct cash cattle trade activity was quiet as packer inquiry is limited.  Bids didn’t surface.  Asking prices were floated at $157 live in the South, while the North remained quiet.  It’s more than likely business will follow the trend of recent weeks with significant trade volume holding off until sometime Thursday or Friday. 

At the Tulsa Livestock Auction in Oklahoma, compared to last week steers were steady to $4 lower.  Heifers were $7 to $9 lower.  The USDA says demand was good and quality was better than average.  Receipts were down on the week and up on the year.  Feeder supply included 56% steers and 27% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 644 pounds brought $186 to $196 and feeder steers 653 to 684 pounds brought $176.50 to $186.85.  Medium and Large 1 feeder heifers 455 to 499 pounds brought $180 to $190 and feeder heifers 506 to 548 pounds brought $169 to $179. 

Boxed beef closed lower on light demand for moderate offerings.  Choice was $1.80 lower at $269.64 and Select closed $2.10 lower at $252.39.  The Choice/Select spread is $17.25. Estimated cattle slaughter was 127,000 head – down 1,000 on the week and up 6,000 on the year. 

Lean hog futures were mostly lower on fund liquidation and long-term demand uncertainties.  February lean hogs closed $.47 lower at $77.10 and April lean hogs closed $.07 lower at $85.37. 

Cash hogs closed higher with a solid negotiated run.   Processors were aggressive in their procurement efforts and had to bid up to move the needed numbers.  The cash hog market has been anything but consistent lately.  Demand has held relatively strong on the global market and domestically, but there are concerns it could be impacted by the global economy which could put added pressure on prices.   Barrows and gilts at the National Daily Direct closed $.55 higher with a base range of $67 to $73 and a weighted average of $71.17; the Iowa/Minnesota closed $1.31 higher with a weighted average of $72.05; the Western Corn Belt closed $1.12 higher with a weighted average of $71.68.  Prices at the Eastern Corn Belt were not reported at midday due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate to good demand for moderate offerings at $30 to $42.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $64.  Boars ranged from $15 to $20 and $10 to $13. 

Pork values closed lower – down $.86 at $80.06.  Bellies, picnics, loins, and ribs were all lower. Butts and hams were higher. Estimated hog slaughter was 484,000 head – down 3,000 on the week and up 13,000 on the year.