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Hog futures end the week mixed

At the Chicago Mercantile Exchange, live cattle closed mostly lower pressured by the lower boxed beef prices.  Feeder cattle were mixed on spread adjustments, with pressure coming from the lower boxed beef values and some support from the day’s lower move in corn.  December live cattle closed $.72 lower at $108.87 and February live cattle closed $.17 lower at $112.40.  January feeders closed $.02 lower at $139.77 and March contracts closed $.10 higher at $139.42. 

There was just a little cleanup business that took place on Friday.  Deals in parts of Texas were at $109 to 110 live and in Iowa at $170 dressed.  The bulk of the weeks trade ranged from $110 to $112 live, that’s $1 lower to $1 higher than the prior week’s averages, and at $172 to $174 dressed in the North, also about $1 lower to $1 higher than the previous week’s weighted average basis in Nebraska.   

In Missouri this past week, steers under 700 pounds were steady to $3 higher and steers over 700 pounds were weak to $4 lower.  Heifers sold unevenly steady from $2 lower to $2 higher.  The supply of feeders was heavy.  The USDA says demand was light to moderate with lighter weight grazing type cattle by farm finding the most option for outlets.  Receipts were up on the week and the year.  Feeder supply included 57 percent steers and 51 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 698 pounds brought $121 to $156 and feeder steers 700 to 749 pounds brought $115 to $151.75.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $120 to $153 and feeder heifers 550 to 599 pounds brought $120 to $153.

At the Missouri Hay Market, the supply of hay is moderate, and demand has been light to moderate with mostly steady prices.  Hay feeding continues to increase slowly as grass runs out.  The USDA says the lack of fall pastures will make for a very long feeding season in some parts of the state.  Hay movement hasn’t seen a significant uptick as many farmers carried over a fair amount of hay and baled a lot before it turned dry during the summer.  Alfalfa, supreme medium squares brought $200 to $250; small squares brought $7 to $9.  Alfalfa, premium medium squares brought $160 to $200.  Alfalfa, good large rounds brought $120 to $160 and small squares brought $5 to $7.  Alfalfa/Grass mix, good/premium small squares brought $6 to $8. 

Boxed beef closed sharply lower on light demand for moderate offerings.  Choice closed $4.17 lower at $235.02 and Select closed $2.42 lower at $217.42.   The Choice/Select spread is $17.51. Estimated cattle slaughter is 117,000 head – up 2,000 on the week and down 5,000 on the year.  Saturday’s estimated kill is 69,000 head – down 19,000 on the week and down 11,000 on the year. 

Lean hog futures closed mixed on spread adjustments, with pressure from the weak cash trade and lingering demand uncertainties.  December lean hogs closed $.15 lower at $65.87 and February lean hogs closed $.35 lower at $66.57. 

Cash hogs closed lower with solid negotiated numbers.  The availability of market-ready hogs is more than ample.  Processors continue to push daily slaughter totals higher. While that’s keeping supply chains moving and helping to prevent any further backlog of hogs in the production system, it’s also adding more pork to a heavily saturated market.  The market continues to watch supply and demand, especially as demand for US pork on the global market faces some uncertainty. 

Barrows and gilts at the National Daily Direct closed $.46 lower with a base range of $50 to $58.50 with a weighted average of $55.81; the Iowa/Minnesota closed $.30 lower with a weighted average of $56.46; the Western Corn Belt closed $.40 lower with a weighted average of $56.29; the Eastern Corn Belt was not reported due to confidentiality. 

Compared to last week, all early-weaned pigs were $2 per head higher and all feeder pigs were $4 per head higher.  The USDA says demand was active on moderate offerings and receipts included 34 percent formulated prices.  The Total Composite cash range was $31 to $50 with an average of $43.23, the Total Composite formula range was $33.30 to $46.60 with an average of $39.82.  The Weighted Average for all early-weaned pigs was $41.95 and the average for all feeder pigs was $54.43. 

At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate offerings at $26 to $39.  Barrow and gilt prices were weak with moderate demand for moderate offerings at $35 to $41.  Boars ranged from $15 to $20 and $5 to $10. 

Pork values closed higher – up $1.72 at $78.17.  Hams were sharply higher.  Butts, ribs, picnics, and bellies were all firm to higher.  Loins closed lower. Estimated hog slaughter is 491,000 head – up 11,000 on the week and up 3,000 on the year.  Saturday’s estimated kill is 331,000 head – down 39,000 on the week and up 1,000 on the year. 

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