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Hog futures pressured by slide in cash prices

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, watching direct cash cattle trade develop.  October live cattle closed $1.80 higher at $126.82 and December live cattle closed $1.92 higher at $131.45.  October feeder cattle closed $.35 higher at $155.97 and November feeder cattle closed $1.30 higher at $159.77. 

A light direct cash cattle trade took place on Tuesday.  There were a few scattered deals reported in Eastern Nebraska at $126 live and $200 dressed.   Bids in other areas were at $124 live in the South.  Asking prices were at $126 plus live in the South and $201 to $202 dressed in the North.  Look for more business to pick up over the balance of the week.  The Texas Cash Pool had sales marked at $125.

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers under 600 pounds were $4 to $7 higher and heavier weights were steady.  Feeder heifers were steady to $2 higher.  The USDA says internet bidding and buying was active.  Supply and demand were both moderate.  Receipts were down slightly on the week but up significantly on the year.  Feeder supply included 57% steers and 56% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 807 to 838 pounds brought $155 to $163.85 and feeder steers 857 to 899 pounds brought $154.75 to $159.  Medium and Large 1 feeder heifers 654 to 687 pounds brought $144 to $151 and feeder heifers 753 to 776 pounds brought $144 to $150.50. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice closed $1.73 higher at $284.76 and Select closed $.65 lower at $262.54.  The Choice/Select spread is $22.22.

Estimated cattle slaughter is 122,000 head – up 1,000 on the week and up 3,000 on the year. 

Lean hog futures ended the day lower on profit-taking, the continued slide in cash prices, and long-term demand concerns.  December lean hogs closed $1.62 lower at $72.57 and February lean hogs closed $1.62 lower at $75.15. 

Cash hogs ended the day firm. Packers had to bid up to move their desired numbers on Tuesday.  But, overall they have been able to move large numbers at generally lower prices.  The supply of market-ready barrows and gilts is more than ample.  And, while demand for US pork on the global market and domestically has been strong, there are some long-term demand concerns.  That has been reflected in the lower prices recently. Barrows and gilts at the National Daily Direct closed $.15 higher with a base range of $62 to $66 and a weighted average of $63.81; the Iowa/Minnesota had a weighted average of $65.16; the Western Corn Belt had a weighted average of $65.10.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $50 to $60.  Barrows and gilts prices were $1 lower 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 $.26 at $94.32.  Bellies were sharply lower.  Ribs and loins were lower.  Picnics, hams, and butts were all sharply higher. Estimated hog slaughter is 480,000 head – up 2,000 on the week and down 18,000 on the year. 

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