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Hog futures pressured by lower pork values

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, ahead of the bulk of the week’s direct cash business.  October live cattle closed $1.82 higher at $143.95 and December live cattle closed $1.67 higher at $149.95.  September feeder cattle closed $1.45 higher at $182.90 and October feeder cattle closed $1.50 higher at $185.70. 

There was a light direct cash cattle trade reported on Wednesday.  Live deals in the North were at $140 to $142.  Asking prices were at $136 to $138 live in the South and $227 to $230 dressed in the North.  So far this week, deals have been at mostly $135 live in the South and $225 dressed in the North, both fully steady with last week’s business. Wednesday’s Fed Cattle Exchange was a non-starter with 1,065 head offered and zero head sold. 

At the Ozarks Regional Stockyards in Missouri, compared to last week, steer and heifer calves were steady to $5 higher with spots of $10 higher.  Feeder steers and feeder heifers were steady to $5 higher. There was a light test of the market. The USDA says demand was good on a moderate supply. Rain totals varied across the area, but pasture conditions did improve especially in parts of southern Missouri and northern Arkansas, which had been classified as level D3 according to the US Drought Monitor. Receipts were up on the week and down on the year. Feeder supply included 47% steers and 52% of the offering was over 600 pounds. Medium and Large 1 feeder steers 628 to 646 pounds brought 182 dollars $294 and feeder steers 753 to 787 pounds brought $166.50 to $173.10. Medium and large 1 feeder heifers 602 to 635 pounds brought $159.50 to $168 and feeder heifers 752 to 769 pounds brought $153.50 to $159.

Boxed beef closed lower on light demand for fairly light offerings.  Choice closed $.52 lower at $267.94 and Select closed $.25 lower at $241.30.  The Choice/Select spread is $26.64. Estimated cattle slaughter 124,000 head – down 1,000 on the week and up 2,000 on the year. 

Lean hog futures ended the day mostly lower, pressured by lower pork values. October lean hogs closed $.37 lower at $95.85 and December lean hogs closed $.35 lower at $87.40. 

Cash hogs closed sharply higher with an enormous negotiated run.  Processors were extremely aggressive in their procurement efforts and bid up to move their desired numbers. The industry continues to monitor the availability of market-ready hogs.   Prices are very much reflecting a strong demand with tighter supplies situation. Barrows and gilts at the National Daily Direct closed $9.31 higher with a base range of $114.50 to $135 and a weighted average of $130.64; the Iowa/Minnesota closed $6.16 higher with a weighted average of $132.96; the Western Corn Belt closed $6.57 higher with a weighted average of $133.19; the Eastern Corn Belt had no comparison but a weighted average of $126.22. 

Butcher hog prices at the Midwest cash markets are steady in Dorchester, Wisconsin at $75 and lower in Red Oak, Iowa at $74.  At Illinois, slaughter sow prices were $2 higher with light to moderate demand for light to moderate offerings at $65 to $77. Barrows and gilts were steady with moderate demand for moderate offerings at $77 to $86.  Boars ranged from $45 to $55 and $10 to $20. 

Pork values closed sharply lower – down $5.53 at $125.49.  Bellies dropped more than $26 for the day.  Ribs, butts, and loins were all sharply lower.  Picnics were weak.  Hams closed higher. Estimated hog slaughter is 469,000 head – down 1,000 on the week and up 3,000 on the year. 

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