Market News

Cattle, hog futures end the week lower

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower on fund and technical selling.  February live cattle closed $3.90 lower at $113.10 and April live cattle closed $1.67 lower at $120.  March feeder cattle closed $1.75 lower at $138.67 and April feeder cattle closed $2.50 lower at $142.57. 

Another round of light direct cash cattle trade took place on Friday.  Live deals in the South were at $114, that’s fully steady with the rest of the week’s trade and also fully steady with the previous week’s weighted averages.  Northern dressed trade on Friday ranged from $178.50 to $182, but for the week was at mostly $182, a little more than $1 higher than last week’s weighted averages basis in Nebraska. 

At the Mitchell Livestock Auction in South Dakota, compared to last week feeder steers 600 to 850 pounds were steady to $3 lower and steers 850 to 950 pounds were $2 to $4 lower.  Heifers 600 to 700 pounds were steady to $3 lower and heifers 700 to 900 pounds were steady to $3 higher.  The amount of flesh impacted prices this week.  Demand was good with many load lots in the day’s offering.  Receipts were up on the week and the year.  Feeder supply included 55 percent steers and 90 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 706 to 742 pounds brought $138.50 to $149.10 and feeder steers 851 to 898 pounds brought $128.25 to $137.35.  Medium and Large 1 feeder heifers 651 to 698 pounds brought $131.50 to $143 and feeder heifers 851 to 893 pounds brought $121.50 to $125.50. 

In South Dakota this past week, hay auctions have been limited.  Temperatures are significantly warmer.  Demand has been mostly moderate for hay and rather light for straw and corn stalks. Frozen ground has been thawing and creating very soft and muddy conditions.  Alfalfa, good, large rounds brought $140 to $160.  Alfalfa/grass mix, good/premium brought $125. 

At the Fort Atkinson Hay market in Iowa, prices were a little higher than the previous week and quality was comparable.  Premium hay brought $200, good quality hay brought $120 to $195, and fair quality hay brought $90 to $125.  Third crop small squares brought $220 and third crop big squares brought $140 to $225. 

Boxed beef closed firm to higher on moderate demand for light offerings.  Choice closed $.14 higher at $240.53 and Select is $.94 higher at $229.73.  The Choice/Select spread is $10.80. Estimated cattle slaughter is 119,000 head – up 10,000 on the week and 4,000 on the year.  Saturday’s estimated kill is 64,000 head – up 1,000 on the week and up 37,000 on the year. 

Lean hog futures ended the day lower on fund and technical pressure.  April lean hogs closed $2.60 lower at $87.15 and May lean hogs closed $2.27 lower at $88.87. 

Cash hogs closed higher with a moderate negotiated run.  Processors were aggressive in their procurement efforts for most of the week.  The industry remains optimistic demand on the global market and domestically for US pork will remain strong.  But, the market is keeping an eye on the heavy supplies.  The availability of market-ready barrows and gilts is more than ample and daily slaughter totals continue to be higher.  That contributes to more pork coming online.   Barrows and gilts at the National Daily Direct closed $.58 higher with a base range of $70 to $82.50 with a weighted average of $78.52; the Iowa/Minnesota closed $.52 higher with a weighted average of $79.81; the Western Corn Belt closed $.62 higher with a weighted average of $79.77.  Prices at the Eastern Corn Belt was not reported due to confidentiality. 

According to the USDA’s weekly Feeder Pig Report, early-weaned pigs were $4 per head lower and all feeder pigs were steady to $6 higher.  Demand was moderate for light offerings and receipts included 44% formulated prices.  The Total Composite cash range was $51 to $70 for a weighted average of $62.70.  The Total Composite formula range was $38.33 to $69.62 for a weighted average of $52.39.  The average for all early-weaned pigs was $56.62 and the average for all feeder pigs was $87.43. 

Butcher hog prices at the Midwest cash markets are steady at $48. At Illinois, slaughter sow prices were $2 to $3 higher with good demand for moderate offerings at $58 to $70. Barrows and gilts were $1 higher with good demand for moderate to heavy offerings at $50 to $55. Boars ranged from $25 to $30 to $12 to $15. 

Pork values closed lower – down $1.29 at $93.84.  Picnics and bellies were sharply lower.  Loins were lower.  Hams were steady.  Butts and ribs were higher.  Estimated hog slaughter is 488,000 head – even on the week and up 5,000 on the year.  Saturday’s estimate kill is 174,000 head – up 7,000 on the week and up 79,000 on the year.