Hog futures mostly lower with pork down at midday
November 13, 2019 By John Perkins Filed Under: Closing Futures / Livestock Briefs, Livestock Markets, Market News
Chicago Mercantile Exchange live cattle futures were sharply lower,
following the lead of feeders, despite another higher move in boxed beef at
midday and light, but steady to higher, direct business in the south. December
was down $1.65 at $118.10 and February was $1.47 lower at $124.10.
Feeder cattle were down sharply on technical selling. November lost
$2.22 to $145.57 and January dropped $4.30 to $142.82.
Direct cash cattle markets were mostly quiet. Light trade was reported
mainly at $115 live in Kansas and Texas, steady to $1 higher than last week’s
weighted average. Asking prices were $117 to $118 live and $185 to $188
dressed, with a few bids at $115 live in Kansas, but widespread direct business
will wait until Thursday or Friday. This week’s offering at the Fed Cattle
Exchange was 1,393 head, 0 sold.
Boxed beef closed higher on good demand for light offerings. Choice
was up $1.84 at $242.34 and Select was $1.30 higher at $217.53. The estimated
cattle slaughter of 118,000 head was unchanged on the week and down 2,000 on
At the St. Joseph Stockyards feeder cattle sale in Missouri, compared
to the previous week, steer and heifer calves weighing less than 450 pounds
were steady to firm, while calves weighing more than 450 pounds were $2 to $5
lower. Unweaned offerings weighing more than 450 pounds were down $6 to $8 and
yearlings were untested. The USDA says the smaller offering was because of the
bitterly cold conditions earlier in the week with moderate demand. 51% of the
offering were steers and 80% of the run weighed less than 600 pounds. Medium
and Large 1 feeder steers weighing 400 to 500 pounds sold at $166.50 to $185.50
and 500 to 600-pound steers ranged from $151 to $176. Medium and Large 1 feeder
heifers weighing 400 to 500 pounds were reported at $139 to $155 and 500 to 600-pound
heifers brought $131 to $142.50.
Lean hog futures were mostly lower on spread trade, profit taking, and
the lower midday move in pork. Commercial selling and spillover from cattle
were additional features. Futures didn’t have much of a reaction to news
U.S./China trade talks have stalled. December was down $1.60 at $63.12 and
February was $1.00 lower at $74.55.
Cash hogs were steady to lower with a sizable closing negotiated run
for the major direct markets. Buyers were able to reapply leverage, using the
market ready supplies and trying to make up for Monday’s slow slaughter.
Weather delays are still possible in parts of the region. There continues to be
a lot of uncertainty about the trade deal with China. The deal appears to be in
jeopardy again, with reports of an impasse over Chinese purchases of U.S. ag
goods and U.S. resistance to rolling back tariffs. The average Iowa/Southern
Minnesota barrow and gilt weight last week was 287.9 pounds, up 1.2 on the week
and 3.9 on the year.
Pork closed $1.51 lower at $87.02. Loins, butts, ribs, and hams were
all down sharply. Picnics and bellies were higher. The estimated hog slaughter
of 492,000 head was steady on the week and up 12,000 on the year.
direct barrows and gilts closed $.49 lower at $40 to $43.09 with a weighted
average of $42.24, while Iowa/Southern Minnesota was down $.76 at $41.86 and
the Western Corn Belt was $.76 lower at $41.85. Butcher hogs at the Midwest
cash markets were steady at $34. Illinois direct sows were steady at $26 to $41
on moderate demand for heavy offerings. Barrows and gilts were steady at $25 to
$30, also with moderate demand for heavy offerings. Boars ranged from $8 to
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