Market News

Cattle futures higher on short covering

At the Chicago Mercantile Exchange, cattle futures ended the day sharply higher on short covering and technical buying interest.  Feeder cattle are higher on concerns that increased placements through the first half of the year will limit supplies at the end of the year.  August live cattle closed $3 higher at $106.72 and October contracts closed $3 higher at $110.02.  August feeder cattle closed $4.50 higher at $151.32 and September contracts closed $3.57 higher at $150.95.

Friday afternoon business went quiet after the morning’s light to moderate trade.  Feedlot managers who held out early in the week were rewarded as live bids were at $107 to $108 – about $1 to $2 higher than the rest of the week’s live business and dressed business was $169 to $170.  Asking prices for cattle remaining on showlists are around $108 live and $173 dressed.

At the Ava Livestock Auction in Missouri, receipts are down on the week and up on the year.  Compared to last week’s auction, feeder steers under 600 pounds were $5 to $12 lower and steers over 600 pounds were not well compared.  Feeder heifers were steady to $8 lower. The USDA says demand was moderate and so was supply.  Feeder supply included 60 percent steers and 35 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 600 pounds brought $148 to $152 and feeder steers 600 to 700 pounds brought $140 to $151.  Medium and Large 1 feeder heifers 400 to 500 pounds brought $142.50 to $151.50 and feeder heifers 500 to 600 pounds brought $132 to $145.

At the Missouri Hay Market, hay supplies are light.  Seventy percent of the state listed on the latest drought monitor.  The USDA says demand is good and hay prices are steady to firm.  Supreme quality alfalfa brought $180 to $250 and small squares brought $6.50 to $8 per bale.  Premium quality alfalfa brought $160 to $200, good quality alfalfa brought $120 to $160 and small squares brought $5 to $7 per bale.  Good quality mixed grass hay brought $100 to $150 and good quality bromegrass brought $100 to $150.

Boxed beef cutout values closed sharply lower on light demand and moderate to heavy offerings.  Choice down $1.28 lower at $211.96 and Select closed $2.09 lower at $198.57.  Estimated cattle slaughter is 119,000 head – even on the week and the year.  Saturday’s estimated kill is 57,000 head – down 10,000 on the week and up 5,000 on the year.

Lean hog futures closed widely mixed.  Nearby contracts are higher with deferred contracts under extreme pressure following Thursday’s Hogs and Pigs report and the threat of record-breaking fourth quarter pork production.  July lean hogs closed $1.75 higher at $82.87 and August lean hogs closed $.72 higher at $76.45.

Cash hogs ended the day steady with a weak undertone on limited buying interest.  This week – and next are expected to be the lowest harvest levels for summer and then slaughter totals will likely start to move higher. The market remains nervous with the large hog supply – which is larger than expected from the looks of the latest Quarterly Hogs and Pigs report and the continued negative trade rhetoric.  Any disruption to demand would be costly to US pork producers.  Barrows and gilts at the Iowa/Southern Minnesota closed $.13 lower with a range of $68 to $78.50 with a weighted average of $77.06; the Western Corn Belt closed $.15 lower with a range of $68 to $78.50 for a weighted average of $76.99; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.19 lower with a range of $68 to $78.50 for a weighted average of $76.69.

The USDA says early-weaned pigs were $2.00 per head lower.  All feeder pigs were steady to weak. Demand was moderate for moderate offerings.  Receipts included 53 percent formulated prices.  Total composite formula rage was $25.86 to $44.00 with an average of $34.74.  Total composite cash range was $10.00 to $21.00 with a weighted average of $16.20.  The average for all early weaned pigs was $27.13 and the average for all feeder pigs was $39.92.

Butcher hogs at the Midwest cash markets are steady at $57.  At the Interior Missouri Direct, receipts are up on the week and down on the year.  Barrows and gilts are steady at $69 to $70 with light supply and demand.  Sows are steady at $34 to $44.  For the week barrows and gilts are steady to $2 higher and sows are steady.  At Illinois, slaughter sow receipts are down on the week and the year.  Slaughter sow prices are $2 lower at $34 to $46 with moderate demand for moderate offerings.  Barrows and gilts are steady at $46 to $55 with moderate demand for moderate offerings.

Pork cutout values closed weak – down $.21 at $87.38.  The primals were mixed with the ribs, picnics, and loins all closing lower.  Estimated hog slaughter is 435,000 head – up 11,000 on the week and 16,000 on the year.  Saturday’s estimated kill is 20,000 head -up 20,000 on the week and down 3,000 on the year.

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