Market News
Lean hogs higher on demand optimism
At the Chicago Mercantile Exchange, live cattle closed mixed ahead of widespread direct business. Feeder cattle were lower, pressured by the day’s higher move in corn. October live cattle closed $.37 higher at $109.20 and December live cattle closed $.20 higher at $111.95. October feeder cattle closed $1.92 lower at $138.12 and November feeder cattle closed $2.40 lower at $137.52.
A slow Tuesday for direct cash cattle trade activity. A few early asking prices were noted in parts of Texas around $110 live. Bids have yet to surface. It’s very likely significant trade volume could hold out until sometime Thursday or Friday.
At the Tri-State Livestock Auction in Nebraska, compared to last week, steers were steady to $6 lower. Heifers were steady to $6 higher. The USDA says demand was good to moderate all day. Receipts were down on the week and the year. Feeder supply included 62 percent steers and 27 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 503 to 548 pounds brought $160 to $169 and feeder steers 551 to 584 pounds brought $151.50 to $160.50. Medium and Large 1 feeder heifers 454 to 499 pounds brought $151.50 to $168 and feeder heifers 500 to 542 pounds brought $140 to $155.50.
Boxed beef closed lower on light demand for moderate offerings. Choice closed $.74 lower at $216.24 and Select closed $1.17 lower at $206.84. Estimated cattle slaughter is 120,000 head – even on the week and up 2,000 on the year. Monday’s cattle slaughter has been revised to 116,000 head.
Lean hog futures ended the day higher on increased demand expectations for US pork on the global market. October lean hogs closed $1.57 higher at $76.32 and December lean hogs closed $1.22 higher at $63.87.
Cash hogs closed lower with a fairly light negotiated run. More than ample supplies of market-ready barrows and gilts are adding even more pressure to prices. Packers have been pushing daily slaughter totals higher and while that’s helping to work through the backlog of hogs in the production system from the COVID-related disruptions, it’s also adding more pork to an already saturated market. The industry is still optimistic demand for US pork will continue to rise and that’s helping to provide some price support. Barrows and gilts at the National Daily Direct closed $.47 lower with a base range of $60 to $65 for a weighted average of $64.08; the Iowa/Minnesota closed $2.17 lower for a weighted average of $63.77; the Western Corn Belt closed $2.17 lower for a weighted average of $63.77. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $40. At Illinois, slaughter sow prices were weak with moderate to good demand for moderate offerings at $15 to $28. Barrow and gilt prices were firm with moderate to good demand for moderate to heavy offerings at $39 to $44. Boars ranged from $1 to $3.
Pork values closed lower – down $2.45 at $92.55. Hams closed $16.54 lower and picnics were also lower. Bellies and ribs were sharply higher. Loins and butts were also higher. Estimated hog slaughter is 487,000 head – up 2,000 on the week and down 1,000 on the year.
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