Market News

Cattle futures close higher on short covering

At the Chicago Mercantile Exchange, cattle futures closed higher on short covering.  Some support also came from the anticipation of Friday’s placement number, however that did not happen. Wholesale beef prices have stabilized some this week and are also providing some support to cattle futures.  October live cattle closed $1.47 higher at $111.57 December live cattle closed $1.22 higher at $117.42.  September feeder cattle are $.22 higher at $153.40 and October feeder cattle closed $.22 higher at $156.10.

Light business developed in parts of the North with dressed deals mostly at $170.00 – about $3.00 to $4.00 higher than the previous week.  Many cattle are left unsold.  It looks like Southern business wrapped up midday at mostly $108.00, $2.00 higher than the previous week.  Bids were reported at $108 live and $170 to $172 dressed.

Boxed beef cutout closed firm on light to moderate demand and moderate offerings.  Choice closed up $.09 at $191.60 and Select ended the day $.32 higher at $188.73.

At the Apache Livestock Auction in Oklahoma feeder steers and heifers were $5.00 to $7.00 higher and steer and heifer calves were mostly $3.00 to $8.00 higher.  The quality was average to attractive and the USDA says there was improve demand for feeders and calves.  Feeder supply included 39 percent heifers and 43 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 550 to 600 pounds were $155.00 to $160.00 and Medium and Large 1’s 700 to 750 pounds were $150.00 to $160.00.  Feeder heifers, Medium and Large 1’s 562 to 579 were $144.00 to $150.50.  Medium and Large 1’s 712 to 740 were $135.00 to $146.00.

At the Iowa Hay Market hay prices trended mostly $5.00 to $10.00 lower.  Market activity was light this week.  Alfalfa supreme small squares are $240.00 to $265.00, premium small squares are $210.00 to $222.00.  Premium alfalfa/grass small squares were $205.00 to $235.00 and large squares were $200.00 to $210.00; Good quality small squares $140.00 to $180.00 and large rounds $115.00 to $145.00.

At the Nebraska Hay Market compared to last week alfalfa, grass hay, ground and delivered hay sold steady and pellets were mostly steady to $5.00 higher.  Demand was varied and ranged from light to good.  In Eastern/Central Nebraska alfalfa, premium large square bales $140.00 and good large round bales $80.00 to $100.00.  Alfalfa pellets 17 percent protein were $190.00 to $210.00.  In Platte Valley, alfalfa supreme large round bales $110.00, good round bales $85.00 to $90.00.  Dehy pellets, 17 percent protein were $190.00.

Estimated cattle slaughter is 115,000 head, even with last week and up 7,000 on the year.  Saturday’s estimated slaughter is 58,000.

At the CME, lean hogs closed sharply lower again today.  Hogs can’t stop the bleeding with additional pressure from the continued weakness in wholesale values.  The only positive that could come out of the hemorrhaging is that prices are now venturing into oversold territory and are primed for a rebound.  October lean hogs closed $1.32 lower at $57.32 and December lean hogs closed $2.12 lower at $57.80.

Cash hogs closed weak.  The trade continues to monitor the availability of market-ready numbers.  If Saturday’s kill is realized it could push weekly slaughter totals to well over 2.5 million head.  Packer margins remain strong and with the supply holding steady – don’t expect relief in cash hog prices anytime soon.

Barrows and gilts at the Iowa/Southern Minnesota were $.04 lower with a range of $46.00 to $50.50 and an average of $49.09; the Western Corn Belt was $.05 lower with a range of $43.00 to $50.50 and an average of $48.94; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct was $.15 lower with a range of $43.00 to $50.50 and an average of $48.70.

The USDA says early weaned pigs and all feeder pigs were mostly steady.  Demand was moderate for moderate offerings and receipts include 48% formulated prices.  The total composite formula range for early weaned pigs was $30.31 to $44.00 with an average of $37.77; while the total composite cash range was $17.00 to $28.00 with an average of $23.10. The average for all early weaned pigs was $30.65.  The total composite cash range for feeder pigs was $35.00 to $41.00 for an average of $37.86.

Butcher hogs at the Midwest cash markets were steady at $38.00 to $40.00.

At the Interior Missouri Direct, barrows and gilts are steady at $43.00 to $46.00.  The USDA says supply and demand are light to moderate.  Sows are steady, sows under 500 pounds are $20.00 to $25.00 and sows over 500 pounds are $24.00 to $30.00.  For the week barrows and gilts are $1.00 to $7.00 lower and sows are steady to $1.00 lower.

At Illinois, slaughter sow prices are weak with moderate demand for moderate offerings.  Sows are $20.00 to $32.00.  The USDA says barrows and gilt prices were weak at $30.00 to $36.00, with moderate demand for moderate offerings.

Pork closed weak – down $.34 at $72.20.  The primals were mixed but Friday saw another big drop in the belly primal.

Estimated hog slaughter is 455,000 head, up 8,000 on the week and 22,000 on the year.  Saturday’s estimate kill is 230,000, up 51,000 on the week.  If that number is realized – that would put the weekly kill total above 2.5 million head.