Market News

Cattle futures end the week lower

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of Friday’s On Feed report, which showed placements much larger than pre-report expectations. April live cattle closed $.87 lower at $187.50 and June lives closed $1.60 lower at $182.90.  April feeders closed $3.12 lower at $251.50 and May feeders closed $4.30 lower at $253.77.   

Direct cash cattle trade activity was quiet Friday following the active day Thursday. Packers aggressively competed for fed cattle, which did result in some pretty impressive prices.   For the week Live deals in the South were marked at mostly $188, $2 higher than the previous week’s weighted averages.  Dressed business in Nebraska and Iowa was at mostly $302, $4 higher than the prior week’s business.  In a statement to Brownfield Friday, National Beef Packing Company said the company is expected to resume production at its Liberal, Kansas harvest facility Monday (March 25, 2024) following a fire that halted operations Thursday and Friday. The closure is not expected to cause any major disruption to production in the beef industry.

At the Herreid Livestock Market in South Dakota, no accurate trend is available.  The USDA says there was very good demand for the light offering which featured many loads and a few packages of mostly finishing-type cattle.  Cattle were both backgrounded and home-raised.  Flesh was moderate to moderate plus.  The market was active with mostly order buyers.  Receipts were down on the week and the year.  Feeder supply included 75% steers and 86% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 608 to 648 pounds brought $298 to $319 and feeder steers 820 to 834 pounds brought $254 to $259.50.  Medium and Large 1 feeder heifers 696 to 698 pounds brought $255 to $267 and feeder heifers 758 to 764 pounds brought $240 to $255.50. 

In South Dakota, alfalfa hay was weak.  Grass hay was steady to weak.  Corn stalks were steady to weak.  The USDA says there has been very little demand for alfalfa as the milder winter has lessened the need for alfalfa hay.  Dairy quality hay has been under pressure as operators are hesitant to pay asking prices as margins have tightened.  Demand for grass hay has been moderate at best.  Alfalfa, good/premium, large rounds brought $180.  Alfalfa/grass mix, good, brought $160.  Grass, premium, large rounds brought $175 to $180.  Grass, good/premium, large rounds brought $160.  Corn stalks, rounds bales, brought $60 F.O.B and delivered brought $40 to $45. 

Boxed beef closed lower with light demand for moderate offerings.  Choice is $3.01 lower at $310.72 and Select closed $2.26 lower at $301.47.  The Choice/Select spread is $9.25. Estimated cattle slaughter was 109,000 head – down 4,000 on the week and nearly even on the year.  Saturday’s estimated kill is 14,000 head – down 1,000 on the week and down nearly 1,000 on the year. 

Lean hog futures closed were mostly higher on spread trade and the higher midday move in pork values.  April lean hogs closed $.32 lower at $84.57 and May lean hogs closed $.50 higher at $90.40.

Cash hogs closed lower with a moderate negotiated run.  Processors weren’t very aggressive in their procurement efforts Friday and were able to move needed numbers without having to bid up.  Despite those lower prices to end the week, overall, the cash market has found some strength recently.  That’s largely due to demand for US pork on both the global market and domestically.  The industry continues to monitor the availability of market-ready hogs, hog weights, and the fluctuation in pork values.  Barrows and gilts at the National Daily Direct closed $1.00 lower with a base range of $73 to $82 with a weighted average of $79.30; the Iowa/Minnesota closed $1.14 lower with a weighted average of $79.72; the Western Corn Belt closed $.60 lower with a weighted average of $79.72.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were $5 lower and feeder pigs were $1 higher.  Demand was good for heavy offerings.  The Total Composite Cash Range for early-weaned pigs was $40 to $62 with a weighted average of $49.80.  The Total Composite Formula Range for early-weaned pigs was $46.66 to $64.36 with a weighted average of $54.21.  The weighted average for all early-weaned pig was $51.42 and the weighted average for all feeder pigs was $94.21. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $50 to $62.  Barrows and gilts were steady with moderate demand for moderate offerings at $43 to $53.  Boars ranged from $15 to $25 and $8 to $15. 

Pork values closed higher – up $2.29 at $94.37.  Ribs were sharply higher.  Bellies, loins, and hams were higher. Picnics and butts were lower. Estimated hog slaughter was 485,000 head – up 41,000 on the week and up about 2,000 on the year.  Saturday’s estimated kill is 95,000 head – down 29,000 on the week and up nearly 28,000 on the year.