Market News

Lean hog futures up on good export sales numbers

Chicago Mercantile Exchange live cattle futures were higher and feeders were mostly lower, watching direct cash cattle business develop. October live was up $1.27 at $145.62 and December was $1.27 higher at $151.32. September feeders were down $.62 at $179.35 and October was $.50 lower at $180.92.

Direct cash cattle business was light in the south at $142 on the live basis, up $1 from last week’s weighted average, and more moderate in the north at $226 to $227 dressed, steady to up $1 when compared to both Wednesday and last week. There was very light activity in the north at $142 to $143 live, in addition to a few dressed sales at $229. Asking prices for what’s left on the show list were $143 to $144 live and $230+ dressed, with reported bids at $142 and $143 live and $226 dressed. Beef export sales of 15,100 tons were up on the week, primarily to South Korea, Japan, and Mexico.

Boxed beef closed weak to lower with moderate movement. Choice was down $1.13 at $252.34 and Select beef was $.16 lower at $229.95. The estimated hog slaughter of 125,000 head was down 2,000 on the week but up 6,000 on the year.

At the Mitchell Livestock Auction feeder cattle sale in South Dakota, receipts were down sharply on the week and while there was no reported trend, there was a lower undertone. The USDA says demand was good. 69% of the offering were feeder heifers and 97% of the run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 870 to 890 pounds were reported at $174 to $182.50 and 930-to-980-pound steers brought $168.25 to $174. Medium and Large 1 feeder heifers weighing 800 to 870 pounds ranged from $168.50 to $176 and 900 to 1,000-pound heifers sold at $159 to $174.

Lean hog futures were higher, supported by the USDA’s delayed weekly export sales numbers. Sales were down from the week ending September 1^st, but did feature solid interest from China, which has been a concern due to economic uncertainties and some political tensions. October was $1.35 higher at $96.05 and December was up $2.35 at $87.65.

Cash were steady to lower with moderate negotiated numbers. Many buyers pulled back bids after moving a lot of market ready numbers at mostly higher prices Wednesday. Now that they generally have the needed near-term numbers in hand, it looks like the focus might be returning to profit margins. Pork export sales of 25,100 tons were down on the week, mainly to Mexico, China, and Japan.

National direct barrows and gilts closed $3.15 lower with a base price range of $86 to $102 for a weighted average of $95.11, while Iowa/Southern Minnesota was down $.39 and the Western Corn Belt was $.21 lower, with both averaging $99.80.

Butcher hogs at the Midwest cash markets were steady at $70. Illinois direct slaughter sows were steady at $58 to $70 on light to moderate demand and offerings. Barrows and gilts were steady at $67 to $76 with moderate demand and offerings. Boars ranged from $9 to $41.

Pork at midday closed down $1.03 at $105.85. Bellies dropped $11.09, with loins, butts, and ribs weak to sharply lower. Hams gained $4.47 and picnics were firm. The estimated hog slaughter of 482,000 head was up 4,000 on the week and 16,000 on the year.