Market News

Cattle futures supported by the week’s strong cash business

At the Chicago Mercantile Exchange, live and feeder cattle were higher supported by the week’s sharply higher cash business and stronger cutout values.  April live cattle closed $.80 higher at $168.35 and June lives closed $1.12 higher at $162.12.  April feeder cattle closed $.92 higher at $200.82 and May feeders closed $.80 higher at $205.25. 

It was a quiet Friday for direct cash cattle business.  For the week, live deals in the South were marked at mostly $167, $4 higher than the prior week’s weighted averages.  Dressed sales in the North were at mostly $270 to $272, $5 to $6 higher than the previous week’s weighted averages.  There were also some deals in the North reported at $168 to $172 live, $3 to $7 above the previous week’s business. 

At the Mitchell Livestock Auction in South Dakota, feeder steers 700 to 900 pounds were $2 to $8 higher.  There was a higher undertone noted on steers over 1000 pounds.  Feeder heifers 650 to 900 pounds were $4 to $7 higher with a higher undertone noted on 900 to 1000 pound heifers.  The USDA says demand was good.  There were many large load lots in the offering and many high-quality heifers were sold as replacements.  Receipts were up on the week and the year.  Feeder supply included 41% steers and 95% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 851 to 896 pounds brought $183.50 to $193 and feeder steers 900 to 948 pounds brought $176.50 to $189.75.  Medium and Large 1 feeder heifers 809 to 847 pounds brought $172 to $184.25 and feeder heifers 861 to 896 pounds brought $172.10 to $180.25. 

In Missouri this past week, lack of precipitation has not been a challenge recently.  The USDA says pastures and hay fields will be ready to explode once warmer temperatures arrive.  The supply of hay is light, demand is moderate, and prices are holding steady.  Alfalfa, supreme, medium squares brought $250 to $300.  Alfalfa, supreme, small squares brought $10 to $15 per bale.  Alfalfa, premium, medium squares brought $180 to $250.  Alfalfa, good, large rounds brought $150 to $180.  Alfalfa, good, small squares brought $5 to $9 per bale.  Alfalfa, fair, large rounds brought $125 to $150.  Alfalfa/grass mix, good/premium small squares brought $5 to $9 per bale. 

Boxed beef closed higher on solid demand for moderate offerings.  Choice was $2.87 higher at $282.07 and Select closed $2.26 higher at $270.72.  The Choice/Select spread was $11.35. Estimated cattle slaughter was 120,000 head – up 12,000 on the week and 11,000 on the year.  Saturday’s estimated kill is 26,000 head – up 10,000 on the week and down 14,000 on the year. 

Lean hog futures ended the day mixed on bear spreading.  April lean hogs closed $1.20 lower at $75.25 and May lean hogs closed $.12 lower at $84.62. 

Cash hogs closed sharply lower with a very light negotiated run.  Cash hog business was on the struggle bus for most of the week.  Ample supplies of market-ready hogs kept packers in the driver’s seat.  Processors have been moving their needed numbers without having to get aggressive in their procurement efforts and bid up.  While demand has held relatively strong, there are signs of challenges ahead.  Pork values have been on the decline and weekly export sales totals for the were down. Barrows and gilts at the National Daily Direct closed $4.04 lower with a base range of $68 to $76 and a weighted average of $71.90 and the Western Corn Belt had no comparison but a weighted average of $74.34.  Prices at the Iowa/Minnesota and Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig Report, early-weaned pigs and feeder pigs were both $5 lower.  Demand was steady to weak on moderate offerings.  The Total Composite cash range was $20 to $44 and a weighted average of $34.29.  The Total Composite formula range was $30.95 to $52.49.  The weighted averages for all early-weaned pig were $40.33 and the weighted average for all feeder pigs was $80.97. 

Pork values closed lower – down $1.51 at $77.28.  Bellies and ribs were both sharply lower.  Loins were unchanged.  Picnics were firm.  Butts and hams were higher. Estimated hog slaughter was 472,000 head – down 10,000 on the week and up 13,000 on the year.  Saturday’s estimated kill is 104,000 head – up 41,000 on the week and up 45,000 on the year.