Cattle futures lower, hogs higher to end the week
At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower, pressured by the lower boxed beef prices during the session. August live cattle closed $.95 lower at $120.17 and October live cattle closed $.92 lower at $125.60. August feeder cattle closed $1.75 lower at $155.62 and September feeder cattle closed $.72 lower at $158.50.
A quiet end to the week for direct cash cattle trade with just a little scattered dressed trade reported at $196 in Nebraska. Southern live deals for the week have been at mostly $119 to $120 and Northern live deals at $123 to $124. Dressed business in the North was at mostly $197 to $198. All were about steady with last week’s business.
At the MO-KAN livestock market in Missouri, compared to last week steers were firm to $6 higher and heifers were steady to $3 higher. The USDA says demand was good for a moderate supply. Most of the feeders were long-weaned and attractive. But there were also some good-quality calves just off the cow. Receipts were down on the week and up slightly on the year. Feeder supply included 48% steers and 29% of the offering was over 600 pounds. Medium and Large 1 feeder steers 506 to 549 pounds brought $183 to $194 and feeder steers 561 to 590 pounds brought $178.50 to $185. Medium and Large 1 feeder heifers 517 to 535 pounds brought $156 to $163 and feeder heifers 615 to 620 pounds brought $135 to $140.
At the South Dakota Hay Market, compared to last week, all classes of hay were firm. There was very good demand for all classes and types of hay as the drought conditions have persisted throughout the growing season. Dryland hay continues to be very limited across much of central and western South Dakota as the hot and dry weather has limited growth. Concerns continue that hay supplies will not be adequate this year and that has caused demand to hold steady. Alfalfa large rounds brought $230 per bale. Alfalfa, premium large rounds brought $180 per bale. Alfalfa large squares brought $220. Alfalfa large rounds brough t$200. Grass, fair large rounds brough $120.
Boxed beef closed lower. Choice closed $1.93 lower at $267.94 and Select closed $.69 lower at $251.79. The Choice/Select spread is $16.15. Estimated cattle slaughter 118,000 head – down 2,000 on the week and up 3,000 on the year. Saturday’s estimated kill is 56,000 head – down 32,000 on the week and up 8,000 on the year.
Lean hog futures ended the day higher, supported by strong pork values and long-term demand expectations. August lean hogs closed $1.35 higher at $105.65 and October lean hogs closed $1.35 higher at $90.75.
Cash hogs closed sharply lower with a fairly light negotiated run. Processors continue to monitor the availability of market-ready barrows and gilts. Demand strength for US pork on the global market and domestically has been solid and largely supportive to prices. The industry does expect that to continue. However, should a disruption occur, prices would likely tumble. Barrows and gilts at the National Daily Direct closed $3.44 lower with a base range of $105 to $112 for a weighted average of $107.32 and the Western Corn Belt had a weighted average of $109.12. Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality.
According to the USDA’s weekly Feeder Pig report, all early-weaned pigs were steady to $2 lower and all feeder pigs were $2 per head lower. Demand was moderate for moderate offerings and receipts included 60% formulated prices. Total composite cash range for early-weaned pigs was $32 to $48 with a weighted average of $38.99. The Total Composite formula range was $29.30 to $49.20 and a weighted average of $42.03. The weighted average for all early-weaned pigs was $40.87 and the weighted average for all pigs was $63.
The Midwest cash markets are steady with barrows and gilts at $77. At Illinois, slaughter sow prices were firm with good demand for light to moderate offerings at $52 to $63. Barrow and gilt prices were steady with moderate to good demand for moderate to heavy offerings at $72 to $78. Boars ranged from $10 to $50.
Pork values closed higher – up $.42 at $119.94. Hams and picnics were both sharply higher. Bellies and ribs were higher. Loins and butts were sharply lower. Estimated hog slaughter 427,000 head – down 46,000 on the week and down 44,000 on the year. Saturday’s estimated kill is 12,000 head – down 43,000 on the week and down 176,000 on the year.