Market News

Cattle, hog futures end the week lower

At the Chicago Mercantile Exchange, live and feeder cattle futures ended the day lower ahead of the Cattle on Feed report.  Feeder cattle found additional pressure from the day’s modestly higher move in corn.  The supply outlook in the Cattle on Feed report was mostly bearish for the industry.  June live cattle closed $1.37 lower at $94.70 and August live cattle closed $.70 lower at $95.40.  August feeder cattle closed $.42 lower at $132.55 and September feeder cattle closed $.37 lower at $133.87. 

Direct cash cattle trade is quiet to end the week.  No bids were renewed.  It looks like the bulk of the week’s business wrapped up before Friday.  Southern live business had a full range of $98 to $102, mostly $102.  Northern dressed deals had a range of $157 to $167.

In Missouri this past week, steer and heifer calves are steady to $3 lower, yearlings were steady to $3 higher.  The USDA says demand and supply were moderate.  Receipts were about steady on the week and the year.  Feeder supply included 57 percent steers and 46 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 648 pounds brought $127.50 to $160 and feeder steers 650 to 699 pounds brought $127 to $154.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $120 to $149 and feeder heifers 601 to 645 pounds brought $115 to $144.25. 

In Nebraska last week, new crop dairy alfalfa hay sold steady to firm, rounds and old crop alfalfa and grass hay were steady.  Dehy pellets and ground and delivered hay were steady.  The USDA says demand was good for new crop dairy quality hay with mostly light demand on all other classes.  The hot, dry, and windier weather has taken a toll on dryland hay and crops.  Many producers think hay tonnage is about 30 to 50 percent less than last year.  In Eastern/Central Nebraska: Alfalfa, new crop premium large squares brought $175 to $210; good large squares brought $150 to $155; premium large rounds brought $135.  Old crop: good large rounds brought $102.50.  In the Platte Valley area of Nebraska: Ground and delivered alfalfa/cornstalk mix brought $95 to $110.  Dehy alfalfa pellets 17 percent protein brought $280 to $285.  In Western Nebraska: Alfalfa, new crop fair to good large squares brought $110; good large rounds $130 delivered; ground and delivered alfalfa brought $143.   

Boxed beef closed steady with moderate demand for moderate to heavy offerings.  Choice closed $.16 higher at $213.72 and Select closed $.17 lower at $203.91.  The Choice/Select spread is $9.81.    

Estimated cattle slaughter is 119,000 head – up 4,000 on the week and even on the year.  Saturday’s estimated kill is 59,000 head – down 27,000 on the week and down 5,000 on the year. 

Lean hog futures ended the day mostly lower on follow-through selling and concerns about the long-term supply and demand picture.  July lean hogs closed $1.45 lower at $48.45 and August lean hogs closed $.67 lower at $52.80. 

Cash hogs closed steady to weak with moderate negotiated numbers.  Daily slaughter totals continue to push their way higher and that’s helping to keep the supply chain running, especially as supplies of market-ready barrows and gilts are more than ample.  The industry is still struggling to work through the backlog of hogs in the supply chain that is leftover from the COVID-19 outbreak.  Demand potential remains a bright spot for the industry, and the hope is both domestic and global demand remain strong, helping to provide some price support.  Barrows and gilts at the National Daily Direct closed $.05 lower with a base range of $24 to $29.98 for a weighted average of $28.48; the Iowa/Minnesota closed $.50 lower for a weighted average of $28.07; the Western Corn Belt is $.46 lower for a weighted average of $28.08; the Eastern Corn Belt closed $.04 higher for a weighted average of $29.08. 

The latest Feeder Pig Report shows early-weaned pigs are steady to firm and all feeder pigs are $1 per head higher.  The USDA says demand is light for moderate to heavy offerings.  Receipts include 59 percent formulated prices.  The Total Composite formula range for early-weaned pigs is $9.11 to $40.50 for an average of $27.19.  The Total Composite cash range is $1 to $9 for an average of $6.38.  The average for all early-weaned pigs is $19.20 and the average for all feeder pigs is $14.80. 

Midwest cash markets are closed today.  At Illinois, slaughter sow prices were steady with light to moderate demand for light offerings at $7 to $18.  Barrow and gilt prices were steady with light demand for heavy offerings at $10 to $18.  Boars ranged from $1 to $5. 

Pork values closed weak – down $.37 at $64.64.  Loins, bellies, and picnics closed lower.  Ribs were steady.  Hams and butts closed higher.  Estimated hog slaughter is 457,000 head – up 25,000 on the week and down 1,000 on the year.  Saturday’s estimated kill is 290,000 head – up 60,000 on the week and up 204,000 on the year.