Market News

Cattle, hog futures lower to end the week

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower on profit-taking.  December live cattle closed $1.05 lower at $186.76 and February lives closed $1.07 lower at $190.92.  November feeders closed $2 lower at $251.57 and January feeders closed $2.22 lower at $252.25. 

It was a quiet Friday for direct cash cattle business following the week’s light to moderate trade.  For the week, Northern dressed deals were at mostly $292, $3 higher than the prior week’s weighted averages.  Southern live deals were marked at $183 to $184, $1 to $2 higher than the previous week’s business. 

At the Mitchell Livestock Auction in South Dakota, light feeder steers and heifers sold with a higher undertone.  Heifers 900 to 950 pounds were steady.  The USDA says demand was good.  More spring calves are starting to show up in the offerings.  Receipts were up on the week and the year.  The feeder supply included 84% heifers and 97% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 851 to 881 pounds brought $234.75 to $241.25.  Medium and Large 1 feeder heifers 905 to 945 pounds brought $214.75 to $217.25 and feeder heifers 953 to 959 pounds brought $217.35 to $217.75. 

In South Dakota, alfalfa hay was steady.  The USDA says there was moderate demand from local hay buyers with the best demand from out-of-state dairies in need of high testing alfalfa.  Demand for grass hay was good as calves are headed to feedyard pens and need high quality, long-stemmed hay to get them off to a good start.  Alfalfa, large squares brought $300.  Alfalfa, good, large squares brought $250.  Alfalfa, fair/good, large rounds brought $200.  Alfalfa, fair, large squares brought $200.  Alfalfa, utility/fair, large squares brought $200.  Alfalfa, pellets 17% sun-cured, brought $330.  Alfalfa/grass mix, good, large rounds brought $185.  Grass, good, large rounds brought $180 to $185.  Millet, good, large rounds brought $150. 

Boxed beef closed mixed with light to moderate demand for light offerings.  Choice was $.39 lower at $300.80 and Select was $.47 higher at $275.49.  The Choice/Select spread is $25.31.  Estimated cattle slaughter was 112,000 head – even on the week and down 1,000 on the year.  Saturday’s estimated kill is 6,000 head – down 11,000 on the week and down 32,000 on the year.

Lean hog futures were pressured by lower cash and wholesale business.  December lean hogs closed $.60 lower at $69.50 and February lean hogs closed $.67 lower at $74.35. 

Cash hogs closed lower with a light negotiated run.  Processors just aren’t in a position where they have to bid up to move needed numbers.  That’s largely because near-term supplies of market-ready hogs are more than ample.  Demand for US pork on the global market has been relatively strong, but there are concerns that could wane.  There’s also worry domestic demand could pull back.  A decline would definitely put pressure on prices.  And so the cash hog market is likely set up to continue this consistently inconsistent pattern. Barrows and gilts at the National Daily Direct closed $1.54 lower with a base range of $68 to $75 and a weighted average of $72.07; the Iowa/Minnesota closed $.91 lower with a weighted average of $72.85; the Western Corn Belt closed $.78 lower with a weighted average of $72.85.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the UDSA’s Weekly Feeder Pig Report, early-weaned pigs were steady to $1 higher.  All feeder pigs were steady to $3 higher.  Demand was moderate for moderate offerings.  The Total Composite cash range for early-weaned pigs was $13 to $33 and a weighted average of $23.68.  The Total Composite formula range for early-weaned pigs was $30.60 to $55.24 and a weighted average of $44.98.  The weighted average for early-weaned pigs was $31.03 and the weighted average for all feeder pigs was $44.35.

Butcher hog prices at the Midwest cash markets are steady at $55. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $20 to $31.  Barrows and gilts were steady with moderate demand for moderate offerings at $39 to $49. Boars ranged from $18 to $21 and $5 to $10. 

Pork values closed lower – down $1.64 at $90.50.  Bellies, hams, picnics, loins, and butts were all lower.  Ribs were firm. Estimated hog slaughter was 480,000 head – up 4,000 on the week and 2,000 on the year.  Saturday’s estimated kill is 187,000 head – up 36,000 on the week and up 74,000 on the year.