Market News

Cattle futures mixed to end the week

At the Chicago Mercantile Exchange, live and feeder cattle ended the day mixed adjusting spreads. December live cattle closed $.30 lower at $151.65 and February lives closed $.50 lower at $154.37.  January feeders closed $.20 higher at $179.62 and March feeders closed $.15 lower at $181.62. 

It was a typically quiet Friday for direct cash cattle trade activity. For the week, Southern live deals were marked at mostly $150, fully steady with the prior week’s weighted averages.  Northern dressed business was at mostly $242, $2 above the previous week’s weighted average basis in Nebraska. 

At the Ogallala Livestock Auction in Nebraska, compared to the previous week steers were $7 to $15 higher. Heifers were steady to $3 lower, except 550 pounds heifers which were $4 higher.  The USDA says demand was good on a nice offering.  Receipts were up on the week and the year.  Feeder supply included 73% steers and 34% of the offering was over 600 pounds.  Medium and Large 1 feeder steers, unweaned, 469 to 490 pounds brought $230 to $247 and feeder steers, unweaned, 602 to 642 pounds brought $188 to $205.  Medium and Large 1 feeder heifers, unweaned, 423 to 448 pounds brought $199.50 to $217.50 and feeder heifers 457 to 497 pounds brought $185.50 to $199. 

In Missouri, the recent rains provided very little relief to the drought monitor.  Overall conditions around the state are still dry and temperatures and moisture to an extent have been beneficial to crops like wheat and rye grasses.  The hay market remains very active, but supplies are light to moderate.  Demand is moderate and prices are firm.  Alfalfa, supreme, medium squares brought $250 to $300.  Alfalfa, supreme, small squares brought $10 to $15.  Alfalfa, premium, medium squares brought $180 to $250.  Alfalfa, good, large rounds brought $150 to $180.  Alfalfa, good, small squares brought $5 to $9.  Alfalfa, fair, large rounds brought $125 to $150.  Alfalfa/grass mix, good/premium small squares brought $5 to $9.  Mixed grass, good/premium, large rounds brought $125 to $175.  Mixed grass, fair/good, large rounds brought $100 to $150. 

Boxed beef closed lower on light demand for moderate offerings.  Choice closed $1.43 lower at $263.75 and Select closed $1.16 lower at $231.90.  The Choice/Select spread is $31.85. Estimated cattle slaughter was 125,000 head – up 1,000 on the week and up 6,000 on the year.  Saturday’s estimated kill is 29,000 head – down 3,000 on the week and down 15,000 on the year. 

Lean hog futures ended the day mixed with pressure from the steady to lower cash business and higher pork values during the session.  December lean hogs closed $.40 lower at $82.97 and February lean hogs closed $.75 lower at $86.42. 

Cash hog closed mixed with a light negotiated run. The market has been soft this week as processors haven’t been aggressive in their procurement efforts and have been able to move their desired numbers without having to bid up.  The industry continues to watch the availability of market-ready hogs and global demand.  There are concerns that a slowing global economy could weaken demand and put additional pressure on prices.

Barrows and gilts at the National Daily Direct closed $.94 lower with a base range of $79 to $97.50 and a weighted average of $85.18; the Iowa/Minnesota closed $1.55 higher with a weighted average of $89.12; the Western Corn Belt closed $1.19 higher with a weighted average of $88.71.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s weekly feeder pig report, receipts were down on the week and the year.  Early-weaned pigs were higher on the week and all feeder pigs were also higher.  There was strong demand for moderate offerings.  The total composite cash range for early-weaned pigs was $26 to $44.50 with a weighted average of $37.93. The total composite formula range for early-weaned pigs was $38.74 to $50.41 with a weighted average of $43.70.  The weighted average for all early-weaned pig was $40.19 and the weighted average for all feeder pigs was $57.29. 

Butcher hog prices at the Midwest cash markets were steady at midday at $58.  At Illinois, slaughter sow prices were steady with light 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 $30 to $35 and $9 to $19. 

Pork values closed higher – up $.36 at $96.72.  Loins, butts, bellies, and picnics were all higher.  Hams and ribs were lower and sharply lower. Estimated hog slaughter was 468,000 head – down 19,000 on the week and down 5,000 on the year.  Saturday’s estimated kill is 164,000 head – up 42,000 on the week and down 67,000 on the year.