Market News

Live cattle, hog futures higher to end the week

At the Chicago Mercantile Exchange, live cattle closed higher with boxed beef higher at midday. Feeder cattle were mostly modestly higher on the mostly fractionally lower move in corn. February live was up $.92 at $155.77 and April was $0.77 higher at $159.70. January feeders were $.72 higher at $183.77 and March was up $0.02 at $184.70.

It was a relatively quiet Friday for direct cash cattle business with just some scattered cleanup deals across all areas.  For the week, dressed deals in the North were marked at mostly $248, $1 higher than the previous weeks’ weighted average basis in Nebraska.   Live business in the South was at mostly $155, steady to $.50 lower than the prior week’s business.

In Oklahoma, for the week, feeder steers were mostly steady.  Feeder heifers were steady with instances of $3 higher on 7-weights.  The USDA says demand was moderate to good for feeder cattle. Steer calves were steady, except 3-weights, which were $10 to $15 higher.  Heifer calves were $1 to $5 higher.  Recent rains have helped improve pasture conditions.  Receipts were down on the week and the year.  Feeder supply included 54% steers and 46% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $173 to $202 and feeder steers 700 to 749 pounds brought $153 to $190.  Medium and Large 1 feeder heifers 550 to 598 pounds brought $155 to $187 and feeder heifers 652 to 698 pounds brought $118 to $177. 

At the Missouri Hay Market, recent rains helped improve the drought picture.  Extremely cold temperatures are in the forecast.  Hay movement is good, but the supply is light to moderate with moderate demand.  Prices are holding mostly steady.  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 per bale.  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. 

Boxed beef closed sharply higher on strong demand for light offerings.  Choice closed $8.53 higher at $262.83 and Select closed $6.94 higher at $235.45.  The Choice/Select spread is $27.38. Estimated cattle slaughter was 119,000 head – down 1,000 on the week and the year.  Saturday’s estimated kill is 24,000 head – even on the week and down 33,000 on the year. 

Lean hog futures were supported by oversold signals and the midday gain in the pork carcass cutout value. February was up $4.12 at $85.77 and April was $3.55 higher at $92.72.

Cash hogs closed lower with a moderate negotiated run.  Processors appeared to have their desired numbers and weren’t aggressive in their procurement efforts.  Demand for US pork has remained strong on the global market and while that’s expected to continue for now, there are concerns slowing economies would weaken demand and put pressure on prices.  The industry’s also watching the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.77 lower with a base range of $74 to $85.50 and a weighted average of $80.67; the Iowa/Minnesota closed $.05 lower with a weighted average of $82.85; the Western Corn Belt closed $1.02 lower with a weighted average of $81.24.  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 higher and all feeder pigs were $9 per head higher.  Demand was good on moderate offerings.  The Total Composite cash range for early-weaned pig was $42 to $62 and a weighted average of $54.24.   The Total Composite formula range was s$44.55 to $65.58 with a weighted average of $54.75. The weighted average for all early-weaned pigs was $54.50 and the weighted average for all feeder pigs was $72.15.   

Pork values closed higher – up $1.95 at $87.44.  Picnics were sharply higher.  Bellies and loins were higher.  Butts, hams, and ribs were all lower. Estimated hog slaughter was 461,000 head – down 14,000 on the week and down 16,000 on the year.  Saturday’s estimated kill is 199,000 head – up 52,000 on the week and down 130,000 on the year.  Thursday’s hog slaughter has been revised to 475,000 head.