Market News

Cash cattle sales emerge on Friday

Chicago Mercantile Exchange live and feeder cattle futures were sharply higher, supported by cash and wholesale business ahead of the USDA’s Cattle on Feed report. Feeders had additional support from the lower move in corn. April live was up $1.35 at $187.90 and June was $1.17 higher at $183.87. March feeders were $2.52 higher at $254.57 and April was up $3.27 at $259.97.

Business finally picked up on Friday in cash cattle country. Southern live cattle trade was at mostly $183, $3 higher than the previous week, while Northern dressed deals were at mostly $292, $4 higher than the prior week’s weighted averages. The just released February 1 Cattle on Feed report listed 11.8 million head, slightly above February 2023. Placements in January totaled 1.79 million head, 7% below last year.

At the Mobridge Livestock Exchange in South Dakota, feeder steers above 650 pounds trended $2 to $4 higher compared to the most recent sale. Feeder heifers 550 pounds and up were $1 to $4 higher. USDA says there was a large offering featuring many loads and packages. Quality varied most on packages with many producers cleaning out pens for calving. Feeder supply included 68% steers and 78% of the offering was over 600 pounds. Medium and Large 1 feeder steers 752 to 799 pounds brought $245 to $259. Medium and Large 1 feeder heifers 650 to 697 pounds sold for $249.50 to $264.50.

Boxed beef closed higher with Choice up $.82 at $300.61 and Select up $.50 at $286.31. The Choice/Select spread was $14.30.

Estimated cattle slaughter was 119,000 head – down 1,000 on the week and down nearly 2,000 on the year.

Lean hog futures were steady to modestly higher on spread trade and the mostly higher move in pork. April lean held at $87.20 and June was up $.45 at $99.37.

Cash hogs were steady to lower with light closing negotiated numbers at the major direct markets. It looks like most buyers had the needed near-term numbers in hand after the higher trade and improved movement Wednesday and Thursday and were looking to save money where they could. The USDA says pork export sales of 28,900 tons were down on the week, mainly to Mexico and Japan. The USDA’s monthly Cold Storage report was delayed until Monday afternoon by technical issues.

Barrows and gilts at the National Daily Direct were down $1.71 with a base range of $66 to $74 and weighted average price of $71.49. The Iowa/Minnesota was down $1.90 with a weighted average price of $71.84. The Western Corn Belt was $1.84 lower with a weighted average price of $71.78. The Eastern Corn Belt was not reported due to confidentiality.

In Missouri, hay demand was moderate for a light to moderate supply, with prices steady to firm for high quality and steady to weak for medium to low quality. Medium squares of supreme alfalfa ranged from $250 to $350 with premium at $200 to $275, while large rounds of good quality sold at $150 to $200 and large rounds of fair quality brought $125 to $150. Large rounds of good to premium mixed grass were reported at $150 to $225, with fair to good at $100 to $175.

The USDA says that for the week in Nebraska, alfalfa and grass hay were steady to mostly weak, with ground and delivered hay and cornstalks $15 lower and alfalfa pellets steady. Demand was very light and there were reports of more producers looking to sell hay than buy hay. Part of that slower demand is due to the warm, dry weather allowing cattle to graze. In central Nebraska, large rounds of cornstalks sold at $70 with large rounds of good quality prairie and meadow grass at $140 to $160. In the east, medium squares of good to premium alfalfa brought $120 with small squares of brome grass at $12 to $14. In the Platte Valley, large rounds of premium alfalfa were reported at $170 with large rounds of good quality at $150, while 17% protein dehydrated and sun-cured pellets were pegged at $375. In western Nebraska, medium squares of alfalfa and orchard mix sold at $115 with large rounds of millet at $125 and large rounds of milo at $80.

Compared to the previous week in South Dakota, alfalfa hay was steady to weak with moderate demand for dairy quality due to cost cutting by dairy producers as they try to limit the impact of low prices. The USDA says demand for grass hay and cornstalks was good. Large squares of good to premium alfalfa were reported at $250 with large rounds at $205, while large rounds of premium grass sold at $180 and large rounds of fair quality were pegged at $140. Rounds of cornstalks brought $60 to $80.

The USDA says early weaned pigs were up $3 on the week and feeder pigs were $4 higher. Demand was good for light offerings with receipts below the previous week, but above last year. For early weaned pigs, the cash range was $40 to $62 for an average of $55.62, while the formula range was $45.75 to $70.28 for an average of $57.69, with a weighted average for all early weaned pigs at $56.87. For feeder pigs, the cash range was $65 to $84 for an average of $70.23.

Butcher hogs at the Midwest cash markets are steady at $50; slaughter sows are steady at $39 to $42; boars are marked at $14. At Illinois, slaughter sow prices are steady with moderate demand for heavy offerings at $38 to $50; barrows and gilts are steady with moderate demand for moderate offerings at $37 to $47; boars are priced at $8 to $25.

Pork values closed lower – down $.73 at $91.16. Estimated hog slaughter was 482,000 head – unchanged on the week and up more than 21,000 on the year.