Market News

Cattle futures end the week strong

At the Chicago Mercantile Exchange cattle futures closed sharply higher again today and ended the week with large gains.  While cash trade has been slow, creeping prices are lending some support with additional support also from boxed beef’s firm trade at the midday and some technical momentum.  October Live Cattle closed up $1.10 at $107.62 and December Live Cattle closed up $1.72 at $112.85. Corn may have closed firm on Friday, but traded steady to modestly lower, providing some additional support to feeder cattle. September Feeder Cattle closed up $2.32 at $147.87 and October Feeder Cattle ended the day up $2.27 at $148.42.

Direct cash cattle trade has been slow.  Light to moderate business developed late in parts of the North with live and dressed prices near steady with last week.  For Friday – sales in Nebraska were reported at $163 dressed; in Iowa $163 to $165; and in Texas sales were reported at $102 live.

Boxed beef cutout closed weak on light to moderate demand and heavy offerings.  Choice ended the day down $.25 at $191.88 and Select closed down $.19 at $189.97.

At the Cattleman’s Livestock Auction in Texas, compared to two weeks ago steer and heifer calves over 600 pounds were $3.00 to $5.00 higher.  There was a much stronger undertone noted on feeder steers and heifers over 600 pounds.  The USDA says there was very good buyer interest in all weight classes of steers and heifers.  Trade was active and demand was good.  The feeder supply included 66 percent steers and nearly 65 percent of the offering was over 600 pounds.  Feeder Steers, Medium and Large 1’s 400 to 450 $177.00 to $184.00 with package 415 lbs, value added at $192.00; Medium and Large 1’s 700 to 760 pounds were $151.75 to $155.00.  Feeder Heifers, Medium and Large 1’s 400 to 450 pounds were $163.00 to $167.00; Medium and Large 1’s 700 to 800 pounds were $137.00 to $142.00.

At the Iowa Hay Market, hay prices trended mostly steady to higher in some instances on mixed round bales.  Trade activity was moderate with buyers willing to pay the prices for higher quality hay.  Due to the abnormally dry summer in Iowa, some producers have been holding on to hay in hopes of higher prices this winter.  Supreme quality small alfalfa squares brought $265, premium small alfalfa squares brought $210 to $222.  Premium alfalfa/grass small squares brought $230 to $235.  Small squares in good condition brought $125 to $160; large squares in good condition brought $130 to $155; and good quality large rounds brought $130 to $145.  In Missouri, farmers baled several acres of fall grass hay.  The USDA calls supplies moderate with light demand and steady prices.  Supreme quality alfalfa brought $170 to $220 and premium quality alfalfa $150 to $180.  Good quality mixed grass hay brought $75 to $100 and small squares brought $3.00 to $4.50 per bale.

Estimated cattle slaughter is 117,000 – that’s 1,000 greater than last week and 3,000 head more than last year.  Saturday’s kill is projected at 86,000.  That’s 45,000 greater than last week and 14,000 more than a year ago.

At the CME lean hogs closed moderately higher today, mitigating some of the yesterday’s losses and making moderate gains for the week.  The new pork plants that came online this week didn’t create much spark and contracts’ are still at a discount to cash.  October Lean Hogs closed up $.70 at $62.15 and December Lean Hogs closed up $.62 at $58.90.

Cash hogs closed out the week with triple digit losses.  Demand for pork was slow and buyers and sellers are still concerned about the availability of market ready numbers.

Barrows and gilts at the Iowa/Southern Minnesota were down $1.60 with a range of $55.00 to $59.50 and an average of $58.59; and the Western Corn Belt closed down $1.57 with a range of $55.00 to $60.00 and an average of $58.59; the Eastern Corn Belt was not reported due to confidentiality; the national daily direct was down $1.37 with a range of $54.00 to $60.00 and an average of $58.65.

The USDA says early weaned pigs and all feeder pigs were $2.00 per head higher.  The demand was good until mid-week for moderate offerings and receipts include 57 percent of formulated prices.  The total composite formula range for early weaned pigs was $27.50 to $44.00 with an average of $37.43; while the total composite cash range was $15.00 to $27.75 with an average of $22.54.  The average for all early weaned pigs was $31.99.  The total composite cash range for feeder pigs was $32.00 to $44.00 for an average of $37.86.

No trade at the Midwest cash markets on Friday.

At the Interior Missouri Direct, barrows and gilts are steady to $3.00 lower at $53.00 to $54.00.  The USDA says both supply and demand are light to moderate.  Sows are $3.00 to $5.00 lower at $29.00 to $40.00.  For the week, barrows and gilts have trended steady to $3.00 lower and sows are $5.00 to $8.00 lower.

At Illinois, sows prices were $1.00 lower at $30.00 to $35.00.  The USDA says the demand was moderate with moderate offerings.  Boars under 300 pounds were $20.00 to $23.00 and boars over 300 pounds were $10.00 to $12.00.  Barrows and gilts were down $1.00 at $34.00 to $43.00 with light to moderate demand for moderate offerings.

Pork closed down $.79 at $82.12.  Most of the primals closed lower, with the biggest losses in the rib and belly.

Estimated Hog slaughter is 448,000 that’s 38,000 more than last week and 16,000 more than a year ago.  Saturday’s slaughter is projected at 386,000 head to make up some lost ground from Monday’s holiday.