Cattle futures higher to end the week
September 18, 2020 By Meghan Grebner Filed Under: Closing Futures / Livestock Briefs, Livestock, Livestock Markets, Livestock Markets, Market News, Market News
At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher on oversold signals and support from the week’s higher cash trade. October live cattle closed $.57 higher at $107.35 and December live cattle closed $.52 higher at $111.85. September feeder cattle closed $.95 higher at $140.87 and October feeder cattle closed $.97 higher at $142.42.
Another round of light direct cash cattle trade to close out the week. Some dressed business was reported in Nebraska at $165, that’s $2 higher than Thursday’s business and $4 higher than the prior week’s weighted averages. Live deals in Nebraska were at $104, that’s $3 higher than the prior week’s weighted averages. There was also a little cleanup trade that took place in the South at mostly $103, fully steady with the week’s previous business and $2 higher than the prior week’s averages.
In Missouri last week, the Weekly Cattle Auction report has calves steady to $4 lower and yearlings were steady to $3 higher. The USDA says supply was moderate and demand was good for weaned and worked cattle, especially higher weights. Calves that were unweaned and unworked saw big discounts due to health risks. Receipts were up on the week and the year. Feeder supply included 50 percent steers and 48 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 559 to 598 pounds brought $129 to $168.50 and feeder steers 650 to 697 pounds brought $124 to $155.25. Medium and Large 1 feeder heifers 550 to 599 pounds brought $124 to $151.50 and feeder heifers 651 to 699 pounds brought $122 to $150.
In Nebraska, compared to last week alfalfa hay sold fully steady. Grass hay, ground and delivered and dehy alfalfa pellets sold steady. The USDA says the market hasn’t been very active and it might stay that way for some time. In Central Nebraska, Alfalfa, premium large rounds brought $117.50, large squares, 3×4, brought $137.50. Alfalfa, good/premium small squares brought $7 per bale. Alfalfa, good, large rounds brought $90 to $100 for an average of $99.25. Ground alfalfa brought $125 per ton. In the Platte Valley area, Alfalfa, good large rounds brought $100. Ground alfalfa brought $130 per ton and pellets, 17 percent protein, brought $280 to $285. In Western Nebraska, Alfalfa, good large squares brought $175.
Boxed beef closed firm on good demand for moderate offerings. Choice is $.59 higher at $215.64 and Select is $.55 higher at $203.94.
Estimated cattle slaughter is 111,000 head – down 8,000 on the week and down 5,000 on the year. Saturday’s estimated kill is 55,000 head – down 40,000 on the week and down 18,000 on the year.
Lean hog futures closed mostly higher on spread adjustments with support from the higher wholesale values during the session. October lean hogs closed $.02 lower at $66.50 and December lean hogs closed $.10 lower at $63.52.
Cash hogs closed sharply lower with a solid negotiated run. Supplies of market-ready barrows and gilts are more than ample. Processors have been moving big numbers and that’s helped to keep the supply chain moving and while that’s alleviating some of the backlog of hogs in the production system, that’s also adding more pork to an already saturated market. The industry continues to look for consistent increases in demand, which should help to alleviate some of the pressure on prices. Barrows and gilts at the National Daily Direct are $2.35 lower with a base range of $50 to $64 for a weighted average of $60.26; the Iowa/Minnesota is $4.66 lower for a weighted average of $60.03; the Western Corn Belt is $4.71 lower for a weighted average of $59.89; the Eastern Corn Belt has no comparison but a weighted average of $60.51.
The USDA’s Feeder Pig Report for the week had early-weaned pigs $3 per head higher and all feeder pigs $1 per head higher. The agency says demand was good to moderate for moderate offerings and receipts included 28 percent formulated prices. Total Composite formula range was $25.29 to $40.50 for an average of $35.08. Total Composite cash range was $15 to $23 for an average of $25.22. The Total Composite weighted average for all early-weaned pigs was $28.20 and the average for all feeder pigs is $34.57.
Butcher hog prices at the Midwest cash markets are steady at $28.
At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $11 to $23. Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $35 to $41. Boars ranged from $1 to $3.
Pork values closed firm – up $.50 at $87.53. Bellies and ribs were sharply higher. Hams were firm. Loins were weak and butts and picnics were lower.
Estimated hog slaughter is 468,000 head – down 12,000 on the week and up 16,000 on the year. Saturday’s estimated kill is 193,000 head – down 210,000 on the week and down 12,000 on the year. Hog slaughter for Thursday has been revised to 470,000 head.
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