Market News

Hogs mostly higher to start the week

At the Chicago Mercantile Exchange, live cattle were lower, and feeders were mixed waiting for the week’s direct business to develop.  February live cattle closed $.62 lower at $169.95 and April live cattle closed $.37 lower at $173.02.  March feeder cattle closed $.92 higher at $225.07 and April feeder cattle closed $.32 higher at $230.10. 

Direct cash cattle trade activity was quiet on Monday. Showlists this week are mixed – higher in Texas, about steady in Kansas, and somewhat lower in Nebraska/Colorado. Bids and asking prices have yet to surface.  Business could be delayed until late in the week as many in cattle country are facing severe weather conditions.

At mid-session at the Oklahoma National Stockyards, feeder steers and heifers were $2 to $5 lower.  Steer and heifer calves were mostly $3 to $8 lower. The USDA says demand is moderate.  The winter storm system moving through the country has many buyers slow to make any moves.  Receipts were down on the year.  Feeder supply included 56% steers and 51% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 612 to 648 pounds brought $238 to $259 and feeder steers 855 to 895 pounds brought $207 to $212.  Medium and Large 1 feeder heifers 501 to 549 pounds brought $215 to $252 and feeder heifers 704 to 746 pounds brought $201 to $207.

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice was $1.67 higher at $278.83 and Select was $.17 lower at $259.36.  The Choice/Select spread is $19.47.  Estimated cattle slaughter was 115,000 head – down 12,000 on the year.  Saturday’s revised cattle slaughter was 47,000 head.

Lean hog futures were mostly higher on spread trade with additional support from the higher pork values during the session. February lean hogs closed $.60 higher at $70.60 and April lean hogs closed $1.15 higher at $77.52. 

Cash hogs closed mixed with a very, very light negotiated run.  The severe winter weather system moving through the country has processors reluctant to do any significant business to start the week.  In addition, supplies of market-ready hogs are ample and processors don’t have to get aggressive in their procurement efforts and bid up to move needed numbers.  Demand for US pork has been relatively strong on the global market, but there are long-term concerns.  In addition, demand continues to struggle domestically.  Both provide added uncertainty and volatility to prices. Barrows and gilts at the National Daily Direct closed $.34 higher with a base range of $43 to $46 and a weighted average of $44.90; the Iowa/Minnesota closed $.08 lower with a weighted average of $44.88; the Western Corn Belt closed $.03 higher with a weighted average of $44.88.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are $8 lower at $36. At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate offerings at $27 to $39.  Barrows and gilts were steady with moderate demand for moderate offerings at $25 to $35.  Boars ranged from $10 to $20 and $5 to $10.

Pork values closed $.82 higher at $85.02.  Bellies, loins, butts, and ribs were all higher.  Hams and picnics were lower.  Estimated hog slaughter was 489,000 head – even on the year.  Saturday’s revised slaughter was 430,000 head.