Hog, cattle futures end the week higher
July 31, 2020 By Meghan Grebner Filed Under: Closing Futures / Livestock Briefs, Livestock, Livestock Markets, Livestock Markets, Market News, Market News
At the Chicago Mercantile Exchange, live and feeder cattle closed higher, supported by the week’s stronger direct business. August live cattle closed $1.10 higher at $102.82 and October live cattle closed $1.12 higher at $107.87. August feeder cattle closed $1.65 higher at $144.67 and September feeder cattle closed $1.80 higher at $146.22.
A quiet end to the week for direct cash cattle trade. There was a moderate trade throughout the week with Southern live trade at mostly $97 while Northern dressed deals have been marked at mostly $160. Both are above the previous week’s weighted averages.
In Missouri, compared to the prior week’s sales, feeder steers and heifers were steady to $5 higher with some instances of up to $8 higher on mid-weight steers mostly in the 650 to 750-pound range. The supply of feeders was light to moderate and demand was moderate to good. Receipts were up on the week and the year. Feeder supply included 55 percent steers and 53 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 599 pounds brought $135 to $172 and feeder steers 600 to 648 pounds brought $132 to $167.50. Medium and Large 1 feeder heifers 500 to 549 pounds brought $120 to $146 and feeder heifers 600 to 649 pounds brought $110 to $139.50.
At the Nebraska Hay Market, compared to last week in the Central and Platte Valley areas, dehy pellets and ground and delivered hay sold steady. In the West, large rounds of alfalfa sold $5 to $10 higher with squares steady. Ground and delivered hay was steady. Buyer inquiry was good. In Central Nebraska, Alfalfa good large rounds brought $90 to $100 with a weighted average of $95. Good large squares brought $150. Alfalfa fair/good large squares brought $125. Alfalfa/forage mix, ground brought $115. In the East, ground alfalfa brought $130. Dehy pellets 17% protein brought $125 and ground alfalfa/forage mix brought $125. In the West, Alfalfa supreme large squares brought $175, premium large squares brought $180, premium small squares brought $8 per bale. Fair/Good large rounds brought $140 to $150 for an average of $145.
Boxed beef cutout values closed mixed with light to moderate demand for light to moderate offerings. Choice closed $1.46 higher at $203.26 and Select closed $1.61 lower at $189.89. The Choice/Select spread is $13.37. Estimated cattle slaughter is 113,000 head – even on the week and down 2,000 on the year. Saturday’s estimated kill is 51,000 head – down 10,000 on the week and up 16,000 on the year.
Lean hog futures closed higher on oversold signals and higher pork values during the session. August lean hogs closed $.57 higher at $52 and October lean hogs closed $1.30 higher at $49.62.
Cash hogs ended the day weak with light to moderate offerings. Demand uncertainty, both globally and domestically continue to prevent any solid footing in the cash hog market. At the same time, supplies of market-ready barrows and gilts are ample and processors are pushing slaughter totals higher almost daily. That’s adding more pork to a market. If prices are going to turn higher, the industry will need to see some big pushes in overall demand. Barrows and gilts at the National Daily Direct closed $.38 lower with a base range of $37.75 to $41.80 for a weighted average of $40.97; the Iowa/Minnesota closed $.27 lower for a weighted average of $40.94; the Western Corn Belt closed $.51 lower for a weighted average of $40.58. The Eastern Corn Belt was not reported due to confidentiality.
This week’s Feeder Pig Report from the USDA had early-weaned pigs steady to $1 higher and all feeder pigs were steady to firm. Demand was moderate for moderate to heavy offerings and receipts included 29 percent formulated prices. The Total Composite Formula Range was $11.45 to $42.71 for an average of $31.27 and the Total Composite Cash Range was $2 to $18 for a weighted average of $9.35. The weighted average for all early-weaned pigs was $16.25 and the average for feeder pigs was $16.28.
Butcher hogs at the Midwest cash markets were steady at $24. Illinois direct sows are steady at $10 to $22 on good demand for light to moderate offerings. Barrows and gilts were steady at $19 to $28 with good demand for moderate to heavy offerings. Boars ranged from $1 to $3.
Pork values closed lower – down $2.26 at $65.31. Hams, loins, and butts were lower to sharply lower. Picnics and ribs were weak. Bellies closed steady. Estimated hog slaughter is 474,000 head – up 2,000 on the week and up 25,000 on the year. Saturday’s estimated kill is 182,000 head – down 43,000 on the week, but up 146,000 on the year.
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