Market News

Cattle futures higher on strong buyer interest

At the Chicago Mercantile Exchange, cattle futures closed sharply higher on strong buyer interest.  Yesterday’s news that China had added 20 USDA approved facilities was supportive to move as was the futures discount to cash.  However, Monday’s markets will likely be under pressure as China announced it would retaliate with tariffs on $50 billion worth of US goods – including beef.    June live cattle closed $2.20 higher at $108.45 and August live cattle closed $2.90 higher at $104.77.  August feeder cattle closed $4.30 higher at $147.97 and September feeder cattle closed $3.47 higher at $148.27.

Very few cattle traded through Friday afternoon and feedlot country has been very quiet.  There has been a widespread between bids and asking prices.  Packers are pointing out lower cutout values and narrowing managers and feedlot managers are standing their ground based on sharply higher live and feeder futures.  Asking prices remained firm at $116-plus live and $185 dressed with bids at $110 to $111 live and $175 to $178 dressed.

At the Douglas County Livestock Auction in Missouri, receipts are up on the week and the year.  Compared to last week’s auction, lightweight steer and heifer calves were $3 to $6 lower, calves 500 to 650 pounds and yearlings 600 to 750 pounds were steady.  The USDA says demand was moderate to good with heavy supply.  Feeder supply included 63 percent bulls and 37 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 600 pounds were $164 to $175 and steers 600 to 700 pounds brought $146 to $164.  Medium and Large 1 feeder heifers 500 to 600 pounds brought $142 to $152.50 and feeder heifers 645 to 660 pounds brought $32.50 to $134.

At the Missouri Hay Market, dry weather conditions have many farmers in search of hay to buy.  The Missouri Department of Agriculture is urging anyone with hay to sell to list it on the Department’s hay directory.  The USDA says demand is good, but supplies are light.  Prices are steady.  Supreme quality alfalfa hay brought $180 to $250 and small squares brought $6.50 to $8 per bale.  Premium quality alfalfa brought $160 to $200 and good quality alfalfa brought $120 to $160 with small squares bringing $5 to $7.   Good quality mixed grass hay brought $100 to $150 and small squares brought $4 to $6.  Good quality bromegrass brought $100 to $150.

Boxed beef cutout values closed mixed with light to moderate box movement.  Choice down $.49 at $221.59 and Select is $.76 higher at $202.73.  The Choice/Select spread closed at $18.86.  Estimated cattle slaughter is 118,000 head, down 2,000 on the week and 1,000 on the year.  Saturday’s estimated kill is 68,000 head, up 7,000 on the week and 22,000 on the year.

Lean hog futures had a lackluster trade today.  Cash fundamentals are still strong and there was added support from today’s move in wholesale values.  But the uncertainty surrounding negative trade talks are making the market uneasy.  July lean hogs closed $.10 higher at $81.72 and August lean hogs closed $.35 lower at $78.25.

Cash hogs closed higher.  The market is watching the availability of market-ready numbers.  Slaughter runs have been on the decline and that’s providing support to the market.  While there are supportive segments, the market also realizes there is a large hog supply and any potential trade disruption could send prices tumbling.  Barrows and gilts at the Iowa/Southern Minnesota closed $.08 higher with a range of $76.00 to $84 with a weighted average of $83.51; the Western Corn Belt ended the day $.19 higher with a range of $76 to $84 for a weighted average of $83.45; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct is $1.20 higher with a range of $76 to $84 for a weighted average of $82.87.

The USDA says early-weaned pigs were $3.00 per head lower.  All feeder pigs were $1.00 per head lower on light receipts. Demand was moderate for moderate offerings.  Receipts included 51 percent formulated prices.  Total composite formula rage was $25.10 to $44.00 with an average of $33.62.  Total composite cash range was $12.00 to $27.00 with a weighted average of $17.68.  The average for all early weaned pigs was $26.21 and the average for all feeder pigs was $42.16.

Butcher hogs at the Midwest cash markets are closed on Fridays.  At the Interior Missouri Direct, receipts are up on the week and the year. Barrows and gilts are steady to $4 higher at $63 to $66 on light to moderate supply and demand.  Sows are steady to $2 higher at $28 to $42.  For the week barrows and gilts are $3 to $8 higher and sows are steady to $5 higher.

Pork cutout values closed higher – up $1.69 at $84.09.  The primals were mostly higher, with strong gains across the board with the exception of the butt, the day’s only lower close.  Estimated hog slaughter is 412,000 head – down 7,000 on the week and up 6,000 on the year.  Saturday’s estimated kill is 21,000 head, down 42,000 on the week and 30,000 on the year.