Hog Futures Surge Ahead of Quarterly Report

The livestock market saw a mix of activity this week, with live and feeder cattle futures mostly higher as traders awaited the development of direct cash business. Meanwhile, lean hog futures ended the day mostly higher, with the trade also looking ahead to Thursday's Quarterly Hogs and Pigs report.

Unlocking the Potential of the Hog Futures Market

Cattle Futures Await Direct Cash Business

At the Chicago Mercantile Exchange, live and feeder cattle futures saw a mostly higher trend as the market waited for direct cash trade to develop. October live cattle closed slightly lower at $183.20, while December lives closed $0.57 higher at $184.40. October feeders closed $1.32 higher at $245.80, and November feeders closed $0.65 higher at $243.40. The lack of significant trade volume is likely to delay until the latter half of the week, as bids and asking prices did not surface on Tuesday.

Strong Demand Drives Feeder Cattle Prices Higher

At the Tri-State Livestock Auction in Nebraska, flyweight steers were sharply higher, and all weights and classes of steers were $7 to $15 higher. Heifers under 500 pounds were $6 to $13 higher, while heifers 500 to 750 pounds were steady, and heifers over 750 pounds were $3 to $9 higher. The USDA reported that demand was good, with buyers looking for calves that were preconditioned. Receipts were down on the week and the year, with 44% steers and 40% of the offering over 600 pounds. Medium and Large 1 feeder steers 521 to 547 pounds brought $307 to $325, and feeder steers 871 pounds brought $248. Medium and Large 1 feeder heifers 470 to 487 pounds brought $311 to $320, and feeder heifers 791 pounds brought $239.75.

Boxed Beef Closes Mixed, Cattle Slaughter Steady

Boxed beef closed mixed, with light to moderate demand for solid offerings. Choice beef was $0.08 higher at $301.89, while Select beef was $0.92 lower at $286.87, resulting in a Choice/Select spread of $15.02. Estimated cattle slaughter was 125,000 head, even on the week and down more than 3,000 on the year.

Hog Futures Surge Ahead of Quarterly Report

Lean hog futures ended the day mostly higher, with pork prices also higher during the session. The trade is looking ahead to Thursday's Quarterly Hogs and Pigs report, which is expected to provide valuable insights into the hog market. October lean hogs closed $0.17 lower at $82.12, while December lean hogs closed $0.10 higher at $74.97.

Cash Hog Prices Climb on Strong Global Demand

Cash hog prices closed higher, with a solid negotiated run. Processors were more aggressive in their procurement efforts on Tuesday afternoon, bidding up to move needed numbers. Demand for U.S. pork on the global market has been strong, providing price support to the market. Hog weights have been on a seasonal decline, but are still well above year-ago levels, ensuring plenty of pork availability. Barrows and gilts at the National Daily Direct closed $1.53 higher, with a base range of $72 to $79 and a weighted average of $76.54. The Iowa/Minnesota and Western Corn Belt regions also saw higher cash hog prices, with weighted averages of $76.41.

Pork Values Decline, Hog Slaughter Increases

Pork values closed weak, down $0.18 at $93.96. Ribs, bellies, butts, and picnics were lower, while hams and loins were higher. Estimated hog slaughter was 487,000 head, up 13,000 on the week but down more than 3,000 on the year. Butcher hog prices at the Midwest cash markets remained steady at $60, and slaughter sow prices in Illinois were also steady, ranging from $55 to $67, with barrows and gilts trading between $45 and $55.