Market News

Cattle futures up ahead of bearish Cattle on Feed report

At the Chicago Mercantile Exchange, live and feeder cattle futures traded both sides ahead of Friday’s Cattle on Feed numbers.  The market was also looking for direction from cash trade but found some support in the recent strength in the wholesale prices.  With the report’s release look for selling pressure to develop early on Monday.  October live cattle closed $.47 higher at $111.67 and December live cattle closed $.45 higher at $116.60. October feeder cattle closed $.47 higher at $153.62 and November feeder cattle closed $.30 higher at $153.07.

Moderate cash cattle trade developed later in the day on Friday with Northern dressed deals at $174 to $175, steady with last week’s weighted average basis in Nebraska.  Southern live trade is $111.00, also steady with last week’s weighted average.

Boxed beef closed steady with a firm undertone on moderate demand and light offerings.  Choice closed up $.29 at $199.86 and Select closed up $.38 at $191.14.

At the Herreid Livestock Market in South Dakota receipts were down on the week.  The USDA says demand was moderate to good for a moderate to active market.  Steer calves 500 to 550 pounds were $3.00 to $6.00 higher and 551 to 600 pounds were $5.00 lower. Heifer calves were not well compared.  Feeder supply is 65 percent steers and 37 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 502 to 534 pounds were $177.00 to $189.50 and Medium and Large 1’s 818 to 842 pounds were $161.50 to $166.75.  Feeder heifers, Medium and Large 1’s 501 to 543 pounds were $146.00 to $159.00 and Medium and Large 1’s 550 to 597 pounds were $144.50 to $155.00.

At the Nebraska Hay Market, compared to last week alfalfa and grass hay sold unevenly steady.  The USDA says demand was light to moderate in most areas of the state with the best demand for top-quality grass hay.  In Eastern/Central Nebraska Alfalfa supreme large square bales were $160.00 and premium large square bales are $140.00 to $150.00.  Premium large round bales were $110.00.  Grass hay, good quality large round bales were $80.00 to $90.00 and dehy alfalfa pellets, 17 percent protein brought $195.00 to $210.00.  In the Platte Valley area Supreme large round bales brought $140.00 and good round bales $80.00 to $87.50.  Dehy pellets 17 percent protein $185.00.  In the Panhandle, alfalfa, premium large square bales were $160.00 and good large square bales were $135.00 to $142.50.  Alfalfa/Orchard grass, good large square bales were $130.00.  Grass hay, large round bales were $125.00.

Estimated cattle slaughter is 112,00 head up 7,000 on the week and 10,000 on the year.  Saturday’s estimated kill total is 58,000 head, up 10,000 on the week and 13,000 on the year.

At the Chicago Mercantile Exchange, lean hogs finished Friday with modest gains.  Strength in nearby contracts are supported by the continued rise in the lean hog cash index and carcass values.  But with heavy supplies, any weakness in cash or demand could bring a reversal in prices.  December lean hogs closed $.60 higher at $64.85 and February lean hogs closed $.62 higher at $69.10.

Cash hogs closed higher.  Packers have been aggressive this week and as long as margins remain strong and the supply holds steady – don’t look for a significant slowdown in market momentum, or chain speed anytime soon.  EVEN as the sector continues toward seasonal high runs.

Barrows and gilts at the Iowa/Southern Minnesota closed $1.00 higher with a range of $60.00 to $66.50 and an average of $65.21; the Western Corn Belt closed $.90 higher with a range $60.00 to $66.50 and an average of $64.98; the Eastern Corn Belt was not reported due to confidentiality; the National Daily Direct is $.88 higher with a range of $60.00 to $66.50 and an average of $64.37.

The USDA says the demand was active for moderate offerings and early-weaned pigs were $3.00 to $4.00 per head higher and receipts included 53 percent formulated prices.  The total composite formulate range for early weaned pigs were $35.03 to $44.26 with an average of $40.49; the total composite cash range was $23.00 to $43.00 with an average of $35.93.  The average for all early weaned pigs was $38.54 and the average for all feeder pigs was $47.78.

Butcher hogs at the Midwest cash markets did not trade today.

At the Interior Missouri Direct, barrows and gilts are steady to $2.00 higher at $54.00.  Sows are steady with sows under 500 pounds are $24.00 to $30.00 and sows over 500 pounds are $27.00 to $34.00.  For the week barrows and gilts are $5.00 to $10.00 higher and sows are steady to $4.00 higher.

At Illinois, slaughter sows are $3.00 higher with good demand for moderate to heavy offerings.  Barrows and gilts are $3.00 higher at $40.00 to $46.00 with good demand for moderate offerings.

Pork closed higher – up $1.18 at $75.50.  The primals were mostly with strong gains in the loin, picnic, and the belly.

Estimated hog slaughter is 460,000 head up 2,000 on the week and up 25,000 on the year.  Saturday’s estimated hog slaughter is 195,000 head – down 11,000 on the week and down 126,000 on the year.