Market News

Hog futures pressured by pork values

At the Chicago Mercantile Exchange, live cattle ended the day mixed on spread adjustment and position squaring ahead of this week’s USDA reports.  Feeder cattle are mostly lower pressured by the day’s higher move in corn and the continued slide in wholesale prices.  June live cattle closed $.05 higher at $98.77 and August live cattle closed $.22 higher at $99.07. 

Another quiet day for direct cash cattle trade.  A few asking prices have surfaced in the North around $120 live and $200 plus, dressed, but the rest of cattle country remains quiet.  The lone bid is in Nebraska at $180 dressed.  Wednesday’s Fed Cattle Exchange has an offering of 2,782 head.  Look for the bulk of this week’s business to develop in the back half of the week. 

At midsession at the Ozarks Regional Stockyard in Missouri, compared to last week, steer calve under 600 pounds were $3 to $6 higher with heavier weights steady to $2 higher.  Heifer calves were $3 to $7 higher.  The USDA says demand was very good on a heavy supply.  Several multi-pot load drafts of 5 and 6 weight calves from reputation herds were in the offering.  Receipts were up on the week and the year.  Feeder supply included 57 percent steer and 24 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 552 to 598 pounds brought $149 to $159.50 and feeder steers 705 to 746 pounds brought $128 to $136.  Medium and Large 1 feeder heifers 500 to 547 pounds brought $135 to $145 and feeder heifers 602 to 641 pounds brought $125 to $136. 

Boxed beef ended the day lower on light demand for moderate to heavy offerings.  Choice closed $5.48 lower at $409.47 and Select closed $6 lower at $388.87.  The Choice/Select spread is $20.60. 

Estimated cattle slaughter is 99,000 head – up 10,000 on the week, but still down 22,000 on the year. 

Lean hog futures ended the day lower, pressured by weakness in wholesale values and weak cash prices during the session. June lean hogs down $1 at $56.65 and July lean hogs closed $1.37 lower at $56.27. 

Cash hogs ended the day sharply higher with solid negotiated purchases. Processing capacity continues to climb back toward pre-COVID-19 levels.  While that continues to move hogs through the supply chain, it won’t alleviate the backlog of hogs the industry has anytime soon.  Processors are doing their best to maximize their use of available shackle space, but facilities still aren’t running at full capacity.  Global demand continues to present an opportunity for the US pork industry, protein supplies are short and the US could still be well-positioned to meet the world’s pork and protein needs.  Barrows and gilts at the National Daily Direct closed $1.34 with a base range of $31.25 to $42.50 for a weighted average of $38.36; the Iowa/Minnesota had no comparison for a weighted average of $39.89; the Western Corn Belt closed $3.04 higher for a weighted average of $39.65.  The Eastern Corn Belt was not reported due to confidentiality. 

At Illinois, slaughter sow prices were steady with moderate to good demand for moderate to heavy offerings at $7 to $20.  Barrow and gilt prices were steady with moderate demand for heavy offerings at $16 to $20.  Boars range from $1 to $5.

Pork values closed sharply lower – down $9.76 at $97.70.  The biggest declines were in the bellies and the loins.  Hams were also sharply lower, ribs were lower, and picnics were weak.  Butts closed higher. 

Estimated hog slaughter is 397,000 head – up 36,000 on the week, but still down 69,000 on the year.  Monday’s hog slaughter has been revised to 388,000 head.