Market News

Hog futures soar on demand potential

At the Chicago Mercantile Exchange, live cattle futures were higher on technical support and in anticipation of a stronger cash trade this week.  Feeder cattle were sharply higher on the same factors with additional support from the day’s lower move in corn.  August live cattle closed $1.97 higher at $108.12 and October live cattle closed $1.90 higher at $109.30.  August feeder cattle closed $3.97 higher at $142.87 and September feeder cattle closed $4.37 higher at $143.12. 

Direct cash cattle trade is still relatively quiet this afternoon.  There were just a few token bids on the table in parts of Nebraska at $178 dressed.  Asking prices have yet to surface anywhere.  It’s likely significant trade volume won’t develop before Wednesday afternoon.  This week’s Fed Cattle Exchange has an offering of 423 head. 

At the Joplin Regional Stockyards in Missouri, receipts are down on the week and the year.  Compared to last week, steer and heifer calves were steady, yearlings were steady to $3 higher.  The USDA says demand was good and supply was moderate.  Feeder supply included 48 percent steers and 55 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $150 to $160 and feeder steers 700 to 741 pounds brought $141 to $150.  Medium and Large 1 feeder heifers 650 to 691 pounds brought $130 to $136 and feeder heifers 702 to 746 pounds brought $128 to $133. 

Boxed beef closed lower on light demand for heavy offerings.  Choice closed $2.73 lower at $214.73 and Select closed $2.32 lower at $192.09.  The Choice/Select spread closed at $22.64.    Estimated cattle slaughter is 121,000 head – down 2,000 on the week and up 1,000 on the year. 

Lean hog futures closed sharply higher with several months closing limit higher.  Contracts were oversold and due for a bounce and found additional support in the day’s sharply higher wholesale values during the session.  Lean hogs will trade with expanded limits tomorrow.  July lean hogs closed $1.30 higher rat $71.37 and August lean hogs closed $3 higher at $79.07. 

Cash hogs closed firm with fairly strong negotiated purchase totals.  The market is being pulled in different directions.  Heavy supplies continue to pressure prices, but there is renewed hope that demand for US pork will jump substantially and that is helping to keep prices supported.  We’ve yet to see China make the large pork purchases that were promised, should those purchases begin to filter in – it could be exactly what the markets need for prices to turn higher.  Barrows and gilts at the Iowa/Southern Minnesota closed $.32 higher with a range of $60 to $69 for a weighted average of $67.54 and the National Daily Direct closed $.37 lower with a base range of $57 to $69 for a weighted average of $66.66.  Prices at the Western Corn Belt and the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $40 to $44.  At Illinois, slaughter sow prices were weak at $20 to $32 with moderate demand for very heavy offerings.  Receipts were up on the week and the year.  Barrow and gilt prices were $1 lower at $39 to $46 with moderate demand for moderate offerings. 

Pork values closed higher – up $1.89 at $73.77.  Bellies, hams, ribs, and loins were all higher.  Butts and picnics were weak to lower.  Estimated hog slaughter is 478,000 head – down 2,000 on the week and up 21,000 on the year.