Market News

Hog futures supported by demand optimism

At the Chicago Mercantile Exchange, live cattle ended the day mixed on spread adjustments and feeder cattle closed higher, supported by the lower move in corn.  June live cattle closed $.35 lower at $116.77 and August live cattle closed $.72 lower at $118.52.  August feeder cattle closed $.62 higher at $152.95 and September feeder cattle closed $.70 higher at $155.50. 

There was another round of light direct cast cattle trade that took place on Thursday.  Live deals in parts of Kansas were at $120, fully steady with Wednesday business.  Dressed deals in Nebraska and Iowa were at mostly $191, also fully steady with this week’s business.  Asking prices for cattle left on showlists are around $120 plus live in the South and $192 plus dressed in the North.  Look for some cleanup trade to develop on Friday. 

At the Springfield Livestock Market in Missouri, compared to last week feeder steers were steady to $3 higher.  Feeder heifers were $3 to $6 lower.  The USDA says both supply and demand were moderate.  Receipts were up slightly on the week and down on the year.  Feeder supply included 44 percent steers and 40 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 505 to 548 pounds brought $148 to $153.25 and feeder steers 605 to 665 pounds brought $148 to $163.25.  Medium and Large 1 feeder heifers 502 to 549 pounds brought $133 to $140.50 and feeder heifers 600 to 643 pounds brought $125 to $135. 

Boxed beef ended the day higher on moderate demand for moderate offerings.  Choice is $.39 higher at $340.55 and Select is $1.28 higher at $313.16.  The Choice/Select spread is $27.39.  Estimated cattle slaughter is 120,000 head – down 1,000 on the week and up 5,000 on the year. 

Lean hog futures ended the day higher, supported by the strong pork values and long-term demand optimism.  June lean hogs closed $1.12 higher at $119.37 and July lean hogs closed $.52 higher at $119. 

Cash hogs closed mixed with a solid negotiated run.  Processors took a little breather on Thursday following aggressive procurement efforts.  Prices have seen a lot of support recently because of strong demand for US pork on the global market and domestically.  The industry does expect that to continue, however, should a disruption occur, it would likely send prices tumbling.  Barrows and gilts at the National Daily Direct closed $.20 lower with a base range of $99.84 to $117.50 and a weighted average of $108.45 and the Western Corn Belt closed $2.26 higher with a weighted average of $114.18.  Prices at the Iowa/Minnesota and Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market are steady at $75.  At Illinois, slaughter sow prices were $1 to $2 lower with moderate demand for heavy offerings at $38 to $50.  Barrow and gilt prices were $1 higher with moderate to good demand for moderate to heavy offerings at $71 to $76.  Boars ranged from $4 to $50 and $12 to $18. 

Pork values closed higher – up $1.93 at $131.52.  Butts, loins, hams, bellies, and picnics all closed higher to sharply higher.  Ribs were sharply lower. Estimated hog slaughter is 470,000 head – down 11,000 on the week and up 30,000 on the year.