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Hog, cattle futures ended the week lower

At the Chicago Mercantile Exchange, live and feeder cattle closed lower, pressured by the week’s lower cash trade and lower boxed beef prices during the session.  October live cattle closed $.62 lower at $107.15 and December live cattle closed $.92 lower at $108.62.  October feeder cattle closed $.82 lower at $138.10 and November feeder cattle closed $1.45 lower at $135.02. 

It was a relatively quiet Friday for direct cash cattle trade following the light to moderate business that took place on Wednesday and Thursday.  There were a handful of cleanup deals reported at $106 live in Kansas and $166 to $167 dressed in Iowa.  Both were below the week’s previous business.  Prior to Friday’s trade, live deals for the week in Kansas and Texas were at mostly $108 and dressed deals in Nebraska and Iowa at $167 to mostly $169, all are below last week’s weighted averages. 

In Missouri last week, calves sold $3 to $5 lower and yearlings sold steady to $3 lower.  The supply of feeders was moderate and demand continues to be very dependent upon health programs.  The USDA says moisture continues to elude the state and drought areas are slowly intensifying each week.  There have been some reports of hay feeding taking place and there are even some water concerns for some producers.  Feeder supply included 52 percent steers and 51 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 652 to 699 pounds brought $110 to $161.25 and feeder steers 751 to 798 pounds brought $124 to $152. Medium and Large 1 feeder heifers 650 to 698 pounds brought $112 to $145.75 and feeder heifers 700 to 743 pounds brought $103 to $142.50. 

At the Missouri Hay market, hay movement continues to be limited and demand is light.  Supplies are heavy and prices are steady to firm.  The USDA is reporting that the drought areas continue to increase, and reports of hay feeding have risen as some producers have no pasture left.  That could create a very long feeding season.  Alfalfa, supreme medium squares brought $200 to $250.  Alfalfa, supreme small squares brought $7 to $9.  Alfalfa, premium medium squares brought $160 to $200.  Alfalfa, good large rounds brought $120 to $160.  Alfalfa, good small squares brought $5 to $7.  Alfalfa, fair large rounds brought $100 to $125.  Alfalfa/Grass mix, premium small squares brought $6 to $8.  Mixed grass, good/premium large rounds brought $80 to $120.  Mixed grass, fair/good large rounds brought $60 to $80. 

Boxed beef closed weak to lower on light demand for moderate offerings.  Choice closed $.45 lower at $210.03 and Select closed $2.98 lower at $193.52.  Estimated cattle slaughter is 116,000 head – up 4,000 on the week and up 8,000 on the year.  Saturday’s estimated kill is 62,000 head – up 9,000 on the week and down 10,000 on the year. 

Lean hog futures closed mostly lower, pressured by the lower cash trade, long-term demand concerns, and the less than stellar export sales report.  December lean hogs closed $.07 lower at $69.80 and February lean hogs closed $.47 lower at $70.95.

Cash hogs closed lower with moderate negotiated numbers.  Friday’s Export Sales report showed a significant decline in sales from last week and the prior 4-week average.  Supplies of market-ready hogs are more than ample and daily slaughter totals continue to push higher.  While that helps to alleviate some of the pressure in the supply chain that still lingers from the COVID-related shutdowns and slowdowns, it does add more pork to an already saturated market.  Barrows and gilts at the National Daily Direct closed $1.33 lower with a base range of $56 to $66 for a weighted average of $62.13; the Iowa/Minnesota is $1.35 lower for a weighted average of $63.34; the Western Corn Belt closed $1.17 lower for a weighted average of $63.27.  The Eastern Corn Belt was not reported due to confidentiality. 

According to this week’s Feeder Pig Report, early-weaned pigs were $1 per head higher.  All feeder pigs were $2 per head lower on light receipts.  The USDA says demand was good to moderate for moderate offerings and receipts included 25 percent formulated prices.  For early-weaned pigs, Total Composite cash range was $30 to $42 for an average of $35.36 and the total composite formula range was $39 to $49 for an average of $44.37.  The weighted average for all early-weaned pigs was $36.69 and the average for all feeder pigs was $44.37. 

Butcher hog prices at the Midwest cash markets are steady at $50. At Illinois, slaughter sow prices were steady with good demand for moderate offerings at $20 to $34.  Barrow and gilt prices were weak with good demand for moderate offerings at $41 to $45.  Boars ranged from $1 to $5. 

Pork values closed lower – down $2.23 at $99.19.  Hams were sharply lower.  Bellies, butts, ribs, and picnics were lower to sharply lower.  Loins were higher. Estimated hog slaughter was 487,000 head – even on the week and up 4,000 on the year.  Saturday’s estimated kill is 264,000 head – down 25,000 on the week and down 17,000 on the year.  Thursday’s hog slaughter has been revised to 482,000 head. 

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