Hogs

• Lean hog futures turned lower on Wednesday with front month Feb closing at $87.95 down $1.10, while the Apr-Oct contracts were down $0.425 to $1.675.
• The negotiated national average continued higher at $86.28, up $1.46 and was the highest daily average in the last 3 months.
• The pork cutout was down $0.64 at $95.05.
• Hog crush margins remain historically favorable with recent strength in lean hog futures offsetting recent gains in grain and oilseed markets.

February 26 Hogs

Grain

• Grains continued higher on Wednesday with a weak US Dollar providing support as this weakness is supportive of continuing the strong exports we’ve seen in US grains.
• In corn futures front month March was up $0.035 at $4.30, and the May-Sep months were all $0.0325 higher.
• Strong ethanol production reported by the EIA today was also supportive for corn. The week ending 1/23 averaged 1.114 million barrels per day, a record for the calendar week.
• March soybeans finished at $10.75, up $0.055 on Wednesday while the May-Sep contracts were up $0.07 to $0.085.

March 26 Corn

March 26 Soybeans

Cattle

• Cattle futures were higher on Wednesday. Front month Feb settled at $236.825, up $1.225. The Apr-Oct contracts were up $1.20 to $1.325.
• Slaughter pace is becoming notably slower in recent weeks as packer margins pulled back in December and January remaining historically low. With this week’s current pace, we could see the lowest non-holiday weekly harvest since the height of Covid related slowdowns in May 2020.
• Boxed beef was mixed on Wednesday afternoon with choice up $1.63 at $369.74, and the select down $1.62 at $363.57.

February 26 Cattle

Weather

• The Plains and Midwest remain mostly dry near-term, with snow chances far north this weekend through the 6-10 day, and a bit more filling in to through the NW belt and Plains (as well as the SW Plains) into the 11-15 day time frame. Extended temp forecasts remain mostly cool east and warm west.
• Argentine rains held far north yesterday and continue to through the weekend, then chances move up from the south and southwest for the 6-10—forecast maps have that action moving a bit further into corn and soybean areas today.
• Brazilian rains were scattered again over the past 24 hours but covered throughout most of the belt; center-north rains continue on through the next ten days, still leaving dryness to increase far south through early February.