Unraveling the Dynamics of Hog Futures and Cash Business
Chicago Mercantile Exchange: Live Cattle and Feeders
At the Chicago Mercantile Exchange, live cattle and feeders presented a mixed picture. December live cattle faced a decline, while February lives also showed a slight dip. However, January feeder cattle managed to close higher, and March feeder cattle also saw a modest increase. This indicates the complexity and volatility in the cattle market. The different trends among these livestock products highlight the need for a close watch on market dynamics.Another aspect to note is the quiet nature of direct cash cattle trade activity. The lone bid in the North at $290 dressed and the asking prices in the South between $187 and $188 live show the regional differences and the potential for future trading activities. The anticipation of significant trade volume by Thursday or Friday adds an element of uncertainty and excitement to the market.
Ozarks Regional Stockyards: Feeder Steers and Heifers
In Missouri at the Ozarks Regional Stockyards, feeder steers and heifers over 650 pounds remained relatively stable or saw a slight increase of up to $4. Steer calves under 650 pounds witnessed a more significant rise of $10 to $15, with some spots even reaching $20 higher. Heifer calves under 650 pounds also sold $5 to $10 higher. The USDA's assessment of demand being good on stocker and feeder calves and very good on peewee calves, along with moderate to higher supply than normal for this time of year, provides valuable insights into the market conditions. The receipts being down on the week but up on the year further adds to the complexity of the situation. The different weight ranges of feeder steers and heifers and their respective prices show the diversity within the market and the factors that influence them.
Boxed Beef and Estimated Cattle Slaughter
Boxed beef closed lower due to light demand for moderate offerings. Choice dropped $2.40 to $306.39, and Select closed $.92 lower at $270.99. The Choice/Select spread is $35.40. Estimated cattle slaughter was 127,000 head, showing an increase of 2,000 on the week but being nearly even on the year. This indicates the balance between supply and demand in the cattle market and the impact it has on different segments such as boxed beef.
Lean Hog Futures and Cash Hogs
Lean hog futures ended the day higher, supported by cash and wholesale business during the session. December lean hogs closed $.97 higher at $80.52, and February lean hogs closed $1.60 higher at $84.47. Cash hogs also closed higher with a moderate negotiated run. Processors were more aggressive in their procurement efforts and bid up to meet their requirements. The industry continues to monitor the availability of market-ready hogs as it keeps an eye on supplies. Hog weights are up almost a pound on the week but are still below year-ago levels. The strong demand for U.S. pork on the global market provides some price support, but the sluggish domestic demand adds uncertainty to the market. The different price ranges and trends in different regions, such as the National Daily Direct, Iowa/Minnesota, and Western Corn Belt, show the regional variations and the factors that affect hog prices.
Pork Values and Estimated Hog Slaughter
Pork values closed weak, down $.08 at $94.60. Bellies, ribs, butts, and loins were sharply lower to lower, while hams and picnics were both sharply higher. Estimated hog slaughter was 488,000 head, showing a decrease of 1,000 on the week but an increase of nearly 40,000 on the year. This indicates the fluctuations in the pork market and the impact of different factors such as demand and supply on different pork products.