Market News

Cattle, hog futures end week sharply lower

At the Chicago Mercantile Exchange, live and feeder cattle futures closed sharply lower, pressured by the disappointing cash trade and weakening wholesale values.  October live cattle closed $3 lower at $94.87 and December live cattle closed $2.47 lower at $99.75.  September feeder cattle closed $1.05 lower at $133.35 and October feeder cattle closed $1.42 lower at $130.90. 

Direct cash cattle trade finished the week quietly after a light to moderate trade developed at midweek.  Live deals in the South were at $100, generally $2 to $3 lower than the prior week’s averages.  Dressed deals were mostly at $164 on Thursday and at mostly $167 on Wednesday, both are significantly lower than the previous week’s weighted average basis. 

In Missouri, receipts were down on the week and up on the year.  Compared to last week, steers and heifers were mostly steady to $3 lower, however, there were some reports of attractive yearlings selling a few dollars higher.  The feeder market has been hesitant to push higher.  Feeder supply included 56 percent steers and 60 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 702 to 749 pounds brought $124.50 to $149.50 and feeder steers 801 to 849 pounds brought $127.25 to $148.75.  Medium and Large 1 feeder heifers 550 to 597 pounds brought $125 to $150 and feeder heifers 651 to 696 pounds brought $124.50 to $141.50. 

At the Iowa Hay Market, most of the best quality hay has already moved through the market.  The continued sunny, dry weather has many hay producers are hoping to get another cutting of hay cut and baled.  Alfalfa supreme small square bales brought $280 to $320, premium small squares brought $280 to $300, and good small squares brought $200.  Alfalfa/grass premium small squares brought $180 to $185, good large squares brought $175 to $180, and good large rounds brought $140 to $160.  Grass hay, premium small squares brought $230, good large squares brought $120 to $165, large rounds brought $100 to $175, and small squares brought $125.  Fair large rounds brought $65 to $100 and utility large rounds brought $60. 

Boxed beef closed sharply lower on light demand and heavy offerings.  Choice is $2.11 lower at $227.31 and Select is $2.53 lower at $201.94.  The Choice/Select spread is $25.37.  Estimated cattle slaughter is 115,000 head – even on the week and down 4,000 on the year.  Saturday’s estimated kill is 101,000 head – up 37,000 on the week and up 7,000 on the year. 

Lean hog futures closed sharply lower on the continued deterioration of the cash trade and the long-term supply and demand concerns, especially as trade talk progress with China seems to be happening at a snail’s pace.  October lean hogs closed $2.80 lower at $63.50 and December lean hogs closed $3 lower for a weighted average of $62.47. 

Cash hogs closed weak with fairly strong negotiated purchase totals.  The has been hope that demand for US pork on the global market will see a significant increase, but that hasn’t happened yet.  And with the heavy supplies and the continued large slaughter runs adding more pork to an already saturated market, prices can’t justify moving higher.  Smithfield did cut the hog kill numbers in half at two of their Southeast plants, but the impact from the storm looks to be minimal. Barrows and gilts at the Iowa/Southern Minnesota closed $.59 lower for a weighted average of $52.71; the Western Corn Belt closed $.53 lower for a weighted average of $52.71; the Eastern Corn Belt had no comparison but a weighted average of $51.77; and the National Daily Direct closed $1.08 lower with a base range of $48 to $54 for a weighted average of $52.15. 

The USDA says early-weaned pigs and all feeder pigs were mostly steady.  Demand was light to moderate for moderate offerings and receipts included 66 percent formulated.  Total composite formula range was $23.24 to $43.50 for a weighted average of $37.95.  Total composite cash range was $16 to $32 for a weighted average of $22.19.  The weighted average for all early-weaned pigs was $33.07 and the average all feeder pigs is $36.15. 

The Midwest cash markets are closed today.  At Illinois, slaughter sow prices were steady at $19 to $29 with light to moderate demand for moderate offerings.  Barrow and gilt prices were $2 to $3 lower at $30 to $38 with light to moderate demand for moderate offerings.   

Pork values closed higher – up $1.36 at $73.32.  Bellies and picnics were sharply higher.  Hams, ribs, and loins were higher.  Butts were steady.  Estimated hog slaughter is 424,000 head – down 49,000 on the week and down 41,000 on the year.  Saturday’s estimated kill is 357,000 head – up 275,000 on the week and 11,000 on the year.