Hog futures lower on profit-taking

Market News

Hog futures lower on profit-taking

At the Chicago
Mercantile Exchange, live and feeder cattle futures ended the day higher on
follow-through buying and short covering. 
August live cattle were unchanged at $103.27 and October live cattle
closed $.27 higher at $106.87.  August
feeder cattle closed $.10 higher at $142.70 and September feeder cattle closed
$.57 at $143.32. 

There was a very light direct cash cattle trade reported in Nebraska on Friday at $97 to $98 live.  That was fully steady with the rest of the week’s business.  This was another week where there was a light to moderate trade that took place just about every day. 

In Missouri this past week, compared to last week feeder steers and heifers were steady to $3 higher.  Lighter weight calves under 500 pounds were reported with some instances of lower money early week and at other markets, some yearling cattle were much higher.  The supply of feeders was moderate and demand was good.  Receipts were up on the week and the year.  Feeder supply included 49 percent steers and 51 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 598 pounds brought $130 to $171 and feeder steers 600 to 649 pounds brought $125 to $165.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $123 to $152.50 and feeder heifers 650 to 698 pounds brought $115 to $141.25. 

In South Dakota, compared to last week
alfalfa and grass hay are fully steady. 
The USDA says demand is moderate overall and the best demand was from
dairies that are in need of high-testing alfalfa.  Alfalfa: Supreme, Large squares brought
$225.  Premium large squares brought
$180.  Good large squares brought
$135.  Alfalfa/Grass mix: Good large
rounds brought $125.  Grass: Premium
small squares brought $5 to $5.50 per bale. 
$180 to $185 per-ton.  Large
rounds of timothy brought $120. 

Boxed beef closed weak to lower with light demand for moderate offerings.  Choice is $.33 lower at $200.47 and Select is $.99 lower at $190.31.  Estimated cattle slaughter is 115,000 head – down 1,000 on the week and down 6,000 on the year.  Saturday’s estimated kill is 65,000 head – down 2,000 on the week and up 16,000 on the year. 

Lean hog futures closed
lower on profit-taking.  August lean hogs
closed $.85 lower at $52.80 and October lean hogs closed $.75 lower at
$51.07. 

Cash hogs closed steady with solid negotiated numbers.  The supply of market-ready hogs is ample.  Packers have been doing an incredible job keeping the supply chain running and increasing daily slaughter totals closer to pre-COVID-19 levels.  They’re also still trying to work through the backlog of hogs in the supply chain.  This is adding more pork to a market that is struggling with demand uncertainty and producers face increased downside risk in the hog market.  Barrows and gilts at the National Daily Direct are $.12 higher with a base range of $29.75 to $33 for a weighted average of $31.55; the Iowa/Minnesota is $.06 higher for a weighted average of $31.71; the Western Corn Belt is $.11 higher for a weighted average of $31.68.

This week’s feeder pig report has early-weaned pigs steady to $1 per head higher.  All feeder pigs were $3 per head lower on light receipts.  The USDA says demand was light for heavy offerings and receipts included 46% formulated prices.  The total composite formula range for early-weaned pigs was $8.68 to $40.50 for an average of $26.66.  The total composite cash range was $1 to $15 for an average of $6.03.  The Total composite weighted average for all early-weaned pigs was $15.83 and the average for all feeder pigs was $10.90. 

At Illinois, slaughter sow prices were weak with good demand
for light to moderate offerings at $9 to $20. 
Barrow and gilt prices were steady with good demand for moderate to
heavy offering at $14 to $22.  Boars
ranged from $1 to $3. 

Pork values closed higher – up $3.84 at $71.19.  Picnics, ribs, ham, and loins are all sharply higher.  Bellies are steady.  Butts are lower.  Estimated hog slaughter is 462,000 head – up 2,000 on the week and up 10,000 on the year.  Saturday’s estimated kill is 195,000 head – is down 81,000 on the week, but up 178,000 on the year.