Market News

A positive end to the week for live cattle and lean hog futures

At the Chicago Mercantile Exchange, live cattle ended the day higher and feeders were lower watching corn.  October live cattle closed $.22 higher at $125.97 and December live cattle closed $.67 higher at $130.97.  October feeder cattle closed $.85 lower at $157.57 and November feeder cattle closed $.72 lower at $161.42. 

It was a quiet end to the week for direct cash cattle trade activity.  Deals throughout the week were at mostly $124 live, about steady with the prior week’s weighted averages.  Northern dressed deals were at mostly $196, also generally steady with the previous week’s weighted average basis in Nebraska. 

At the Mitchell Livestock Auction in South Dakota, compared to last week steers 850 to 900 pounds were $8 lower, steers 1000 pounds and up were unevenly steady.  Heifers 850 to 950 pounds were $4 to $5 higher.  The USDA says demand was good with many load lots in the day’s offering.  Receipts were down on the week and about steady on the year.  Feeder supply included 60% heifers and 99% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 858 to 878 pounds brought $155 to $157.50 and feeder steers 975 to 985 pounds brought $155.85 to $156.85.  Medium and Large 1 feeder heifers 851 to 890 pounds brought $142.50 to $148.85 and feeder heifers 905 to 949 pounds brought $138.25 to $142.50. 

In Missouri, the USDA says there is just a little hay being fed and the supply is moderate to heavy.  Which means producers shouldn’t have any issues finding hay when needed.  Alfalfa, supreme medium squares brought $200 to $250.  Alfalfa, supreme, small squares brought $8 to $12 per bale.  Alfalfa, premium medium squares brought $160 to $200.  Alfalfa, good large rounds brought $120 to $160.  Alfalfa, good small squares brought $5 to $9 per bale.  Alfalfa, fair large rounds brought $100 to $125.  Alfalfa/grass mix, good/premium small squares brought $6 to $8 per bale.  Mixed grass, good premium large rounds brought $80 to $140. 

Boxed beef ended the day about steady with moderate demand for solid offerings.  Choice closed $.08 lower at $280.24 and Select closed $.06 lower at $260.62.  The Choice/Select spread is $19.62. 

Estimated cattle slaughter is 107,000 head – down 9,000 on the week and the year.  Saturday’s estimated kill is 59,000 head up 1,000 on the week and down 4,000 on the year. 

Lean hog futures ended the day higher, supported by a strong weekly export sales report.  However, gains were likely limited by pressure from cash and wholesale business. December lean hogs closed $.95 higher at $78.27 and February lean hogs closed $1.02 higher at $81.32. 

Cash hogs ended the day lower with a moderate negotiated run. The industry continues to move their desired numbers at lower prices.  The availability of market-ready barrows and gilts is more than ample.  While demand for US pork has been strong on the global market, there are long-term demand concerns, which have been adding pressure to prices.  Barrows and gilts at the National Daily Direct closed $.96 lower with a base range of $66 to $69 and a weighted average of $67.33; the Iowa/Minnesota and the Western Corn Belt both had a weighted average of $68.55. Prices at the Eastern Corn Belt was not reported due to confidentiality. 

According to the USDA’s National Feeder Pig report early-weaned pigs were $1 per head lower and all feeder pigs were $3 per head lower.  Demand was moderate for moderate offerings and receipts included 52% formulated prices.  The Total Composite cash range was $35 to $56 with a weighted average of $50.18.  The Total Composite formula range was $41.58 to $57.02 with a weighted average of $70.64.  The weighted average for early-weaned pigs was $48.94 and the weighted average for all feeder pigs was $70.64. 

At Illinois, slaughter sow prices were steady with light demand for light to moderate offerings $48 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $40 to $48.  Boars ranged from $20 to $25 and $9 to $15. 

Pork values closed sharply lower – down $4.74 at $101.32.  Hams, ribs, loins, and bellies were all sharply lower.  Picnics were lower.  Butts, however, were higher. 

Estimated hog slaughter is 477,000 head – even on the week and down 5,000 on the year.  Saturday’s estimated kill is 256,000 head – up 32,000 on the week and down 7,000 on the year.