Hog futures pressured again
At the Chicago Mercantile Exchange, live cattle were mostly higher and feeders were mostly lower watching corn and direct cash business develop. October live cattle closed $.40 higher at $127.22 and December live cattle closed $.12 higher at $131.57. October feeder cattle closed $.52 higher at $156.50 and November feeders were $1.30 lower at $158.47.
There was a moderate direct cash cattle trade took place on Wednesday. Dressed deals in the North were at $200, $4 higher than last week’s weighted average basis in Nebraska. Live deals were at $126 and $127, $1 to $2 higher than last week’s weighted averages. There was a light trade that took place in Texas on Tuesday at $124 to $125 live, which is steady to $1 higher than last weeks’ weighted averages. There were also a few scattered deals reported in other cattle feeding areas. Wednesday’s Fed Cattle Exchange had an offering of 2,692 head, of which 394 sold at $125.50 to $125.75.
At the Ozarks Regional Stockyards in Missouri, compared to last week steer calves were $4 to $8 higher while heifer calves were $2 to $4 higher. The USDA says demand was good and improved through the day on a moderate supply. The market was active, and the quality of offerings were average to good. Receipts were up on the week and the year. Feeder supply included 50% steers and 41% of the offering was over 600 pounds. Medium and Large 1 feeder steers 553 to 599 pounds brought $159 to $173 and feeder steers 606 to 644 pounds brought $158 to $171. Medium and Large 1 feeder heifers 503 to 546 pounds brought $141 to $151 and feeder heifers 551 to 578 pounds brought $140 to $152.
Boxed beef closed lower on light demand for solid offerings. Choice closed $1.13 lower at $283.63 and Select closed $.85 lower at $261.69. The Choice/Select spread is $21.94. Estimated cattle slaughter is 122,000 head – up 1,000 on the week and up 5,000 on the year.
Lean hog futures ended the day lower on follow-through selling and long-term demand concerns. December lean hogs closed $.60 lower at $71.97 and February lean hogs closed $.82 lower at $74.32.
Cash hogs closed lower with a solid negotiated run. Processors continue to move their desired numbers at lower prices and the industry is keeping an eye on the availability of market-ready barrows and gilts. Demand for US pork on the global market and domestically has been strong, which is expected to continue. But, some long-term demand concerns are creeping in and prices have reflected that. Barrows and gilts at the National Daily Direct closed $.62 lower with a base range of $62 to $65 and a weighted average of $63.19; the Iowa/Minnesota had a weighted average of $63.61; the Western Corn Belt had a weighted average of $63.57; the Eastern Corn Belt had a weighted average of $62.82.
Butcher hog prices at the Midwest cash markets are $2 higher at $62. At Illinois, slaughter sow prices are were steady with good demand for moderate to heavy offerings at $50 to $60. Barrows and gilts were steady with moderate demand for moderate offerings at $39 to $46. Boars ranged from $20 to $30 and $10 to $18.
Pork values closed lower – down $.85 at $93.47. Bellies dropped more than $18. Ribs, picnics, and loins were lower to sharply lower. Hams and butts were both sharply higher. Estimated hog slaughter is 480,000 head – up 2,000 on the week and down 8,000 on the year.