Market News
Lean hogs supported by sharply higher wholesale values
At the Chicago Mercantile Exchange, live cattle futures ended the day higher following Friday’s Cattle on Feed report and the sharply higher wholesale values during the session. Feeder cattle were higher on the same factors with additional support from the day’s lower move in corn. April live cattle closed $.17 lower at $84.80 and June live cattle closed $1.42 higher at $84.05. April feeder cattle closed $.60 higher at $120.40 and May feeder cattle closed $.70 higher at $118.15.
Direct cash cattle trade is off to a very quiet start again this week. Showlists this week are higher across all feeding areas. Bids and asking prices have yet to surface, but there have been a handful of live sales today at $100. That’s not nearly enough to establish a trend. And it’s likely significant trade volume will be delayed until the latter half of the week.
At midsession at the Oklahoma National Stockyards, compared to last week feeder steers over 700 pounds were steady to $3 lower and steers under 700 pounds were $4 to $7 lower. Feeder heifers were $2 to $4 lower, heifers over 800 pounds were steady. The feeder market improved some as the day progressed. The USDA says demand was moderate to good for feeders, but calves were lightly tested. Quality was average to attractive with a few plain. Receipts were up significantly on the week and the year. Receipts included 60 percent steers and 74 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 644 pounds brought $130 to $147 and feeder steers 807 to 849 pounds brought $110.50 to $121.25. Medium and Large 1 feeder heifers 652 to 699 pounds brought $111 to $117.50 and feeder heifers 813 to 847 pounds brought $100.10 to $102.25.
Boxed beef closed sharply higher on heavy demand for moderate offerings. Choice closed $18.47 higher at $311.84 and Select closed $19.76 higher at $209.78. The Choice/Select spread closed at $13.06. Estimated cattle slaughter is 81,000 head – down 5,000 on the week and down 39,000 on the year. Saturday’s cattle slaughter was revised to 43,000 head.
Lean hog futures closed sharply higher on follow-through buying and sharply higher wholesale values. Lean hog futures closed sharply higher on follow-through buying and sharply higher wholesale values. There are ongoing concerns that disruptions to the food supply chain will cause food shortages. May lean hogs closed $3.75 higher at $56.27 and June lean hogs closed $3.72 higher at $55.27.
Cash hog markets ended the day mixed with moderate negotiated numbers. The cash hog market remains under pressure as more processing facilities are being forced to shutter due to the coronavirus outbreak. At the same time, supplies of market-ready hogs are more than ample and the disruption is creating backups down the supply chain. There are serious concerns that the inability to move hogs through the supply chain will ultimately lead to tight supplies at the grocery stores. Barrows and gilts at the National Daily Direct closed $.69 higher with a base range of $31 to $37 for a weighted average of $34.81; the Iowa/Minnesota closed $1.63 lower for a weighted average of $32.37; the Western Corn Belt closed $1.32 lower for a weighted average of $32.43. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices in Dorchester, Wisconsin are at $24 with no comparison. Garnavillo, Iowa is closed today. At Illinois, slaughter sow prices were $3 lower with good demand for heavy offerings at $12 to $25. Barrow and gilt prices were $3 lower with light demand for heavy offerings at $10 to $15. Boars were $2 to $5.
Pork values closed sharply higher – up $6.23 at $83.71. Butts and bellies both closed more than $13 higher. Hams and ribs were also sharply higher. Loins were higher. Picnics were sharply lower. Estimated hog slaughter is 318,000 head, down 47,000 on the week, and 150,000 on the year. Saturday’s hog slaughter was revised to 182,000 head.
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