Market News

Live cattle futures supported by stronger cash business

At the Chicago Mercantile Exchange, live cattle were higher, supported by the stronger cash business on Thursday.  Feeders were mostly lower, pressured by the mostly higher move in corn. 

The holdout paid off for sellers as direct cash cattle trade finally got underway late in the day Friday.  Deals in the South were marked at $160 to $161 live, $1 to $2 higher than the previous week’s business.  Thursday’s dressed business in the North was at $254, $4 above the prior week’s weighted averages basis in Nebraska. 

At the Mobridge Livestock Market in South Dakota, there were few comparisons available for an accurate price trend.  The UDSA says demand was good to very good for the day’s large offering which featured many packages and loads, as well as a couple of strings of both backgrounded and home-raised cattle.  Green cattle that can fit grass programs continue to see strong demand.  There were also a few packages and loads of replacement quality heifers that were met with very good demand.  Flesh condition varied, from light to some heavy at times.  The market was active, and supported by a variety of bidders.  Receipts were up from two weeks ago, but down on the year.  Feeder supply included 77% steers and 80% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 755 to 795 pounds brought $183.50 to $195 and feeder steers 850 to 890 pounds brought $180 to $186.  Medium and Large 1 feeder heifers 625 to 645 pounds brought $200 to $201.50 and feeder heifers 655 to 690 pounds brought $177 to $192.50. 

According to the USDA’s hay report for Missouri, the supply is light and demand is moderate.  Prices are fully steady.  The USDA says there’s still a fair amount of hay moving throughout the state.  Alfalfa, supreme, medium squares brought $250 to $300.  Alfalfa, supreme, small squares brought $10 to $15.  Alfalfa, premium, medium squares brought $180 to $250.  Alfalfa, good, large rounds brought $150 to $180.  Alfalfa, good, small squares brought $5 to $9.  Alfalfa, fair, large rounds, brought $125 to $150.  Alfalfa/grass mix, good/premium, small squares brought $5 to $9.  Mixed grass, good/premium, large rounds brought $125 to $175.  Corn stalks, round bales, brought $35 to $55.   

Boxed beef closed higher on solid demand for moderate offerings.  Choice was up $.37 at $269.66 and Select was $.28 higher at $254.29. The Choice/Select spread was $15.37.   Estimated cattle slaughter was 122,000 head – even on the week and up 1,000 on the year.  Saturday’s estimated kill is 14,000 head – down 5,000 on the week and down 39,000 on the year. 

Lean hog futures ended the day mixed, adjusting spreads.  While export sales showed relatively strong demand, there are long-term concerns. 

Cash hogs closed lower with a solid negotiated run.  The cash hog market had a fairly strong week with some solid gains.  While the Export Sales report did show a decline from recent weeks, it does reflect solid demand.  Processors were able to move their needed numbers at lower prices on Friday.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Direct closed $.28 lower with a base range of $66 to $80.50 and a weighted average of $77.05; the Iowa/Minnesota closed $.32 lower with a weighted average of $78.47; the Western Corn Belt closed $.10 lower with a weighted average of $78.47. Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig Report, early-weaned pigs were $3 per head lower.  Feeder pigs were steady to firm.  Demand was good for uneven offerings.  The Total Composite cash range for early-weaned pigs was $50 to $74 with a weighted average of $64.15.  The Total Composite formula range for early-weaned pigs was $50.24 to $71.78 and a weighted average of $58.15.  The weighted average for all early-weaned pigs was $61.90 and the weighted average for feeder pig was $90.49. 

Butcher hog prices at the Midwest cash markets are steady at $66. Pork values closed firm – up $.66 at $81.05.  Bellies were sharply higher. Picnics and loins were higher. Ribs, hams, and butts were all lower. 

Estimated hog slaughter was 481,000 head – down 3,000 on the week and up 10,000 on the year.  Saturday’s estimated kill is 93,000 head – down 80,000 on the week and down 50,000 on the year.