Market News

Cattle futures end the week on a positive note

At the Chicago Mercantile Exchange, live cattle ended higher on the week’s higher cash trade, oversold signals, and higher wholesales values.  Feeder cattle were higher on the same factors with some support from the days mostly weak move in corn.  December live cattle closed $2.30 higher at $119.52 and February live cattle closed $1.87 higher at $124.22.  November feeder cattle closed $1.52 higher at $149.12 and January feeders closed $1.32 higher at $146. 

Heading into the end of the day Friday, a light to moderate dressed trade was reported in parts of Nebraska.  Deals were at $180, roughly $5 higher than last week’s weighted averages.  Most of those were for delayed delivery. Dressed deals in Iowa were marked at $175 to $180, mostly at $180. A very light round of business was reported in Kansas at $112 to $113 live.

For the week, in Missouri, receipts are almost steady and up on the year.  Compared to last week’s sales feeders were very uneven with most selling in a range of about $2 lower or $2 higher.  Markets varied depending on location.  Yearlings continue to see the best demand.  Feeder supply included 50 percent steers and 51 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 549 pounds brought $134 to $177.50 and feeder steers 700 to 746 pounds brought $24 to $160.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $118 to $146 and feeder heifers 651 to 699 pounds brought $115 to $151.50. 

At the Iowa hay markets, prices for supreme and premium alfalfa and alfalfa/grass mixes were steady regardless of packaging.  However, pricing for large rounds bales has started to slide lower.  That could be attributed to the declining quality of grasses.  Alfalfa, supreme small squares brought $270 to $340, large squares brought $250 to $330.  Premium small squares brought $210 to $330, large squares brought $200 and large rounds brought $200.  Good small square brought $200.  Alfalfa/grass premium small squares brought $200 to $225, large squares brought $220 to $275, and large rounds brought $200.  Good small squares brought $170 to $200 and large squares brought $160 to $185.  Grass, premium small squares brought $200, good small squares brought $180, large squares brought $130 to $220, and large rounds brought $140 to $170. 

Boxed beef closed higher on moderate to good demand and offerings.  Choice closed $1.02 higher at $233.20 and Select closed $1.02 higher at $207.51.  The Choice/Select spread closed at $25.69.   Estimated cattle slaughter is 115,000 head – up 7,000 on the week and down 3,000 on the year.  Saturday’s estimated kill is 74,000 head – down 15,000 on the week and down 19,000 on the year. 

Lean hog futures ended the day lower on continued selling, weak cash trade, and lower wholesale values.  December lean hogs closed $1.55 lower at $64.45 and February lean hogs closed $.75 lower at $72.57. 

Cash hogs closed steady to lower on fairly light negotiated purchase totals.  It appears packers had their met their desired numbers by Friday and didn’t work to hard to move hogs.  Supply and demand continue to be the story of this market.  While the industry is hopeful demand for US pork will eventually see big boosts on the global market, the cash trade is still skeptical and waiting for something to actually materialize.  With heavy supplies of ready barrows and gilts and extremely large slaughter runs – it’s difficult for the price picture, at least on the cash side, to improve.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.03 lower for a weighted average of $47.10; the Western Corn Belt closed $.93 lower for a weighted average of $47.22; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.10 lower with a base range of $45 to $50.85 for a weighted average of $48.95. 

According to the USDA, early-weaned pigs were $1 per head higher and all feeder pigs were steady.  Demand was good to moderate for moderate offerings and receipts included 44% formulated prices.  Total composite formula range was $28.28 to $51.16 with an average of $44.21 and total composite cash range was $22 to $35 for an average of $29.87.  The weighted average for all early-weaned pigs was $36.70 and the average for all feeder pigs was $44.41. 

At Illinois, slaughter sow prices were $2 to $3 lower at $30 to $44 with very good demand for moderate to heavy offerings.  Receipts were up on the week and the year.  Barrow and gilt prices were steady at $30 to $36 with light demand for heavy offerings. 

Pork values closed $.41 lower at $75.64.  Butts, bellies, ribs, and loins were all weak to lower.  Hams and picnics were steady to firm.  Estimated hog slaughter is 486,000 head – up 8,000 on the week and 20,000 on the year.  Saturday’s estimated kill is 238,000 head – down 15,000 on the week and down 4,000 on the year.