Market News

Cattle futures end the week higher

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, supported by the week’s steady to higher cash business.  October live cattle closed $.22 higher at $143.87 and December lives closed $.07 higher at $149.97.  September feeder cattle closed $.85 higher at $183.42 and October feeders closed $.47 higher at $185.95. 

It was a quiet end to the week for direct cash cattle business.  Live deals were at mostly $135 to $136 in the South, steady to $1 higher than the prior week’s weighted averages.  Northern dressed deals were marked at mostly $225 to $227 dressed, steady to $2 higher than the previous week’s weighted average basis in Nebraska. 

At the Valentine Auction in Nebraska, compared to two weeks ago, 700-pound steers were $5 higher, steers 800 to 900 were $4 to $6 higher and steers 1000 pounds were steady.  Feeder heifers 650 and 800 pounds were $3 to $5.  The USDA says demand was good with several buyers and an active internet audience.  Receipts were up from two weeks ago and on the year.  Feeder supply included 68% steers and 97% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 757 to 769 pounds brought $209 to $211 and feeder steers 800 to 848 pounds brought $195 to $201.50.  Medium and Large 1 feeder heifers 764 to 799 pounds brought $180.50 to $184.50 and feeder heifers 837 to 846 pounds brought $165 to $178.75. 

At the Missouri Hay Market, most areas in the southern half of the state finally received some much-needed rain.  But not near enough to end the drought and replenish soil moisture.  Hay movement has been good as cattlemen in drought areas have been trying to hold on to as many cattle as possible.  But, finding hay locally has been tough and trucking costs aren’t cheap, either.  The USDA says hay prices are steady to firm and supplies are moderate.  Demand is moderate to good.  Alfalfa, supreme, medium squares brought $225 to $275.  Alfalfa, supreme, small squares brought $8 to $12.  Alfalfa, premium, medium squares brought $175 to $225.  Alfalfa, good, large rounds brought $120 to $180.  Alfalfa, good, small squares brought $5 to $9.  Alfalfa, fair, large rounds brought $100 to $125.  Alfalfa/grass mix, good/premium small squares brought $5 to $9. 

Boxed beef closed lower on light demand for heavy offerings.  Choice closed $2.40 lower at $263.88 and Select closed $1.68 lower at $238.67.  The Choice/Select spread is $25.21. Estimated cattle slaughter 115,000 head – down 9,000 on the week and even on the year.  Estimated cattle slaughter was 39,000 head – down 11,000 o the week and down 8,000 on the year. 

Lean hog futures ended the day mixed, adjusting spreads.  October lean hogs closed $.80 higher at $98.40 and December lean hogs closed $.20 higher at $88.82. 

Cash hogs closed lower with a fairly light negotiated run.  Demand for US pork on the global market has been strong, which has been providing price support.  However, long-term demand uncertainty is putting pressure on prices.  The industry continues to monitor the availability of market-ready hogs.  Processors have been aggressive in their procurement efforts, for the most part, this week. Barrows and gilts at the National Daily Direct closed $2.76 lower with a base range of $114 to $136 with a weighted average of $124.43; the Iowa/Minnesota closed $.24 lower with a weighted average of $130.52; the Western Corn Belt closed $.10 lower with a weighted average of $130.19; the Eastern Corn Belt closed $3.31 lower and had a weighted average of $122.99. 

According to the USDA’s latest Feeder Pig Report, early-weaned pigs and all feeder pigs were $1 per head higher.  Demand was moderate for moderate offerings.  The Total Composite cash range is $34 to $46 and a weighted average of $42.33.  The Total Composite formula range is $36.87 to $54.73 and a weighted average of $46.24.  The Total Composite cash range for feeder pigs is $67 to $72 and a weighted average of $70.09.  The Total Composite formula range for feeder pigs is $51.83 to $68.87 and a weighted average of $61.08.  The weighted average of early-weaned pigs was $44.53 and the weighted average for all feeder pigs was $66.05. 

Butcher hogs at the Midwest cash markets are steady at $75. At Illinois, slaughter sow prices were $1 higher with heavy demand for moderate to heavy offerings at $66 to $78.  Barrows and gilts were steady with moderate demand for moderate offerings at $77 to $86.  Boars ranged from $45 to $55 and $10 to $20. 

Pork values closed firm – up $.23 at $125.09.  Bellies were sharply higher.  Ribs, hams, and loins were all higher.  Picnics and loins were lower. Estimated hog slaughter 460,000 head – up 23,000 on the week and up 11,000 on the year.  Saturday’s estimated kill is 61,000 up 52,000 on the week and up 4,000 on the year.