Market News

Hog futures sharply higher heading into midweek

At the Chicago Mercantile Exchange, live and feeder cattle ended the day mostly lower watching direct business develop.  Feeders were under additional pressure from the day’s mostly higher move in corn.  February live cattle closed $.77 higher at $137.10 and April live cattle closed $.02 higher at $140.10.  March feeder cattle closed $1.40 lower at $159.85 and April feeder cattle closed $1.10 lower at $165.27. 

There was a light to moderate direct cash cattle took place on Tuesday.  Live deals in across all feeding areas were at $137, that’s fully steady with last week’s business. Dressed deals in the North were at $218, also fully steady with last week’s weighted average basis in Nebraska.  Most of those are marked for delayed delivery the week of February 7^th.  Asking prices are firm at $138 live in the South and $220 dressed in the North.  Look for at least a little more business to develop over the balance of the week. 

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers under 500 pounds were $7 to $15 higher.  Steers over 500 pounds were steady.  Feeder heifers traded steady.  The USDA says supplies were heavy and demand was strong.  Receipts were up on the week and the year.  Feeder supply included 60% steers and 55% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 601 to 635 pounds brought $165 to $180.50 and feeder steers 803 to 835 pounds brought $154 to $158.  Medium and Large 1 feeder heifers 505 to 548 pounds brought $156 to $170 and feeder heifers 605 to 629 pounds brought $149 to $155. 

Boxed beef closed lower on light demand for solid offerings.  Choice closed $1.12 lower at $292.38 and Select closed $1.47 lower at $283.32.  The Choice/Select spread is $9.06. Estimated cattle slaughter is 118,000 head – up 1,000 on the week and the year. 

Lean hog futures ended the day higher on commercial buying with some additional support from the announcement of a court-ordered delay to California’s Proposition 12 rule.  February lean hogs closed $1.12 higher at $87.45 and April lean hogs closed $1.92 higher at $97.25. 

Cash hogs closed sharply higher with a big, negotiated run.  Packers bid up aggressively to move their desired numbers on Thursday.  There was big news out of California as the implementation of its Proposition 12 rule has been delayed.  The industry continues to monitor the availability of market-ready barrows and gilts.  Demand for US pork has been strong on the global market and domestically, but there are long-term concerns.  That has been putting some pressure on the price picture. Barrows and gilts at the National Daily Direct closed $6.44 higher with a base range of $60 to $79 and a weighted average of $72.13; the Iowa/Minnesota closed $9.51 higher with a weighted average of $77.65; the Western Corn Belt closed $9.25 higher with a weighted average of $77.39.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $47. At Illinois, slaughter sow prices were steady to $1 higher with moderate demand for moderate offerings at $30 to $42.  Barrows and gilts were firm with moderate demand for moderate offerings at $38 to $46.  Boars ranged from $15 to $20 and $10 to $15. 

Pork values closed lower – down $3.20 at $92.46.  Picnics, hams, bellies, ribs, and butts were all lower to sharply lower.  Loins were sharply higher. Estimated hog slaughter is 476,000 head – up 8,000 on the week and up 27,000 on the year.  Monday’s hog slaughter has been revised to 448,000 head.