Market News

Cattle futures higher to end the week

At the Chicago Mercantile Exchange, live and feeder cattle were up following the steady to higher cash business during the week.  June lives closed $.77 higher at $178.57 and August lives closed $.72 higher at $176.77.  May feeder cattle closed $2.45 higher at $248.70 and August feeders closed $2.25 higher at $260.55. 

There was a light to moderate direct cash cattle trade throughout the week. Dressed business in the North was mostly $294, generally $2 higher than the previous week’s weighted average basis in Nebraska. Live deals in the South were around $182, fully steady with the prior week’s weighted averages.

In Texas last week, feeder steers and heifers were $1 to $5 higher.  The USDA says trade was fairly active and demand was good.  There were several drafts of yearling steers and heifers coming off of wheat.  Receipts were down on the week and the year.  Feeder supply included 55% steers and 73% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 700 to 741 pounds brought $218 to $262 and feeder steers 800 to 849 pounds brought $205 to $240.  Medium and Large 1 feeder heifers 710 to 747 pounds brought $227.75 to $245 and feeder heifers 865 to 871 pounds brought $207 to $208. 

In Missouri, drought conditions worsened slightly as there was little to no precipitation that fell.  There has been a significant amount of hay cut, baled, and wrapped this past week.  The first cutting of alfalfa hay has been baled dry.  The USDA says the supply of hay is light to moderate, and demand is moderate.  Prices have been mostly steady.  Alfalfa, supreme, medium squares brought $250 to $350.  Alfalfa, supreme, small squares brought $10 to $15.  Alfalfa, premium, medium squares brought $200 to $275. Alfalfa, good, large rounds brought $150 to $200.  Alfalfa, good, small squares brought $5 to $10.  Alfalfa, fair, large rounds brought $125 to $150.  Mixed Grass, good/premium, large rounds brought $150 to $225. 

Boxed beef closed mixed with light to moderate demand for solid offerings.  Choice was $.22 higher at $297.14 and Select was $.94 lower at $288.72.  The Choice/Select spread is $8.42. Estimated cattle slaughter was 113,000 head – even on the week and up 7,000 on the year.  Saturday’s estimated kill is 12,000 head – down 8,000 on the week and down about 10,000 on the year.

Lean hog futures ended the day lower, pressured by long-term demand uncertainty.  May lean hogs closed $1 lower at $94.27 and June lean hogs closed $2.52 lower at $102.47.

Cash hogs closed higher with a very light negotiated run. While processors did have to put in some effort Friday, it was at much smaller numbers.  Packers were active early in the week, which resulted in a more sluggish business at the end to the week.  Demand for US pork has been strong on the global market, and processors have had to be more aggressive in their procurement efforts to meet their needs.  Domestic demand has also been showing some strength as well.  Both are supportive to prices. The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily were $1.67 higher with a base range of $89 to $92 and a weighted average of $90.38.  Prices at the Regional Direct Markets were not reported due to confidentiality. 

The National Feeder Report had early-weaned pigs steady and feeder pigs $16 lower.  The USDA says demand was steady to weak for moderate offerings.  The Total Composite Cash Range was $28 to $47 and a weighted average of $41.54.  The Total Composite Formula Range was $40.34 to $60.61 with a weighted average of $48.43.  The weighted average for all early-weaned pigs was $44.98 and the weighted average for all feeder pigs was $79.30. 

Butcher hog prices at the Midwest cash markets are steady at $52. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $42 to $54.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed firm – up $.14 at $97.63. Loins, bellies, butts, and ribs were higher.  Picnics were weak and hams were sharply lower. Estimated hog slaughter was 439,000 head – down 41,000 on the week and down about 11,000 on the year.  Saturday’s estimated kill is 4,000 head – down 63,000 on the week and down about 43,000 on the year.