Market News

Cattle futures lower, hogs higher to end the week

At the Chicago Mercantile Exchange, live and feeder cattle ended the week lower on follow-through selling.  Contracts were also watching to see if any cash business developed.  December live cattle closed $.15 lower at $147.77 and February lives closed $.60 lower at $151.10.  November feeder cattle closed $1.32 lower at $174.77 and January feeders closed $1.20 lower at $175.10.   

It was a quiet end to the week for direct cash cattle business, following the light to moderate trade that took place on Thursday.  For the week, Southern live deals were marked at $145, about $1 higher than the previous week’s weighted averages.  Northern dressed business was at $232, about $2 above the prior week’s weighted average basis in Nebraska. 

At the Ogallala Livestock Market in Nebraska, compared to last week steers over 500 pounds were $6 to $17 higher, and steers over 500 pounds were steady to $4 lower.  Heifers under 500 pounds were steady to $6 higher and heifers over 500 pounds were steady to $4 lower.  The USDA says demand was strong for the nice offering.  Receipts were up on the week and the year.  Feeder supply included 65% steers and 16% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 504 to 549 pounds brought $194 to $217 and feeder steers 560 to 598 pounds brought $193.50 to $207.  Medium and Large 1 feeder heifers 452 to 489 pounds brought $188 to $207 and feeder heifers 555 to 596 pounds brought $168.50 to $186. 

At the Nebraska Hay Market, all forages were fully steady.  The USDA says demand was good from both in-state and out-of-state buyers.  Dry, windy weather has been persistent, and harvest is running ahead of last year’s pace.  Some producers have been baling rough feed in the form cornstalks, soybean stubble, rushes, and mature pasture grass with the goal of grinding these forages to help with the shortfall of good quality feed.  Alfalfa, premium, large squares brought $270.  Alfalfa, good large rounds, brought $200 to $220. Corn stalks, large roudns brought $70 and $90 to $100.  Grass, good large rounds, brought $180.  Prairie/meadow grass, premium small squares brought $9 per bale.  Prairie/meadow grass, good large rounds brought $200.  Prairie/meadow grass, fair large rounds brought $150.  In the East, Alfalfa pellets 17% protein brought $390.  Alfalfa/forage mix, good small squares brought $7.  In the Platte Valley region, Alfalfa, good large rounds brought $210 to $220.  Alfalfa, ground brought $265 per ton and pellets 17% protein brought $330.  In the west, Alfalfa, good/premium large squares brought $250 to $260.  Alfalfa, ground, brought $265 per ton.

Boxed beef closed higher on solid demand for moderate offerings.  Choice closed $.45 higher at $246.87 and Select closed $1.08 higher at $216.94.  The Choice/Select spread is $30.04. Estimated cattle slaughter was 112,000 head – down 6,000 on the week and up 5,000 on the year.  Saturday’s estimated kill is 37,000, up 1,000 on the week and down 21,000 on the year. 

Lean hog futures closed higher, supported by firm pork values during the session.  December lean hogs closed $1.65 higher at $82.25 and February lean hog closed $1.70 higher at $83.42. 

Cash hogs closed lower with a fairly light negotiated run.  After a couple of back-to-back days of big negotiated runs at sharply higher prices, processors took a breather and haven’t had to work as hard to move their desired numbers.  Demand for US pork on the global market and domestically so far is holding, but there are concerns that an economic slowdown of a global proportion could impact demand and weaken prices.  Barrows and gilts at the National Daily Direct closed $1.46 lower with a base range of $80 to $96 and a weighted average of $87.29.  No comparison at the Iowa/Minnesota, the Western Corn Belt, or the Eastern Corn Belt – but weighted averages of $92.47, $92.36, and $85.25.

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were $2 per head lower and all feeder pigs were steady.  Demand was light on heavy offerings.  The Total Composite cash range for early-weaned pigs was $21 to $40 with a weighted average of $30.34.  The Total Composite formula range is $32.85 to $50.38 and a weighted average of $41.21.  The weighted average for all early-weaned pigs was $36.53 and the weighted average of all feeder pigs was $50.48.

Butcher hog prices at the Midwest cash markets are steady at $60.  At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $59 to $71.  Barrows and gilts were steady with moderate demand for moderate offerings at $58 to $68.  Boars ranged from $39 to $41 and $9 to $19.

Pork values closed lower – down $1.21 at $101.86. Bellies were sharply lower.  Ribs were also lower.  Loins, picnics, hams, and butts were all higher. Estimated hog slaughter is 473,000 head – down 7,000 on the week and up 2,000 on the year.  Saturday’s estimated kill is 113,000 head – down 37,000 on the week and down 142,000 on the year.