Market News

Live, feeder cattle futures end the week higher

At the Chicago Mercantile Exchange, live cattle futures ended the day higher on follow-through support and short covering.  Feeder cattle were higher on the same factors, despite the day’s higher move in corn.  The USDA’s latest export report showed beef exports were up the week and the four-week average. August live cattle closed $1.55 higher at $107 and October live cattle closed $1.77 higher at $108.07.  August feeder cattle closed $2.25 higher at $138.82 and September feeder cattle closed $1.75 higher at $138.70. 

As expected, direct cash cattle trade activity was at a standstill Friday.   We saw a light to moderate trade develop across most areas ahead of the holiday break.  Live business was at $108 to $110, mostly $109 in the South which was steady with last week.  Dressed business was $178 to $182, mostly at $180 in the North, generally $1 higher than the prior week’s weighted averages. 

At the Green City Livestock Auction in Missouri, receipts were up from two weeks ago and down from last year’s sale.  Compared to the last sale, steers and heifers were mostly $5 to $8 higher.  Trade was very active for the Annual Beef BBQ Customer Appreciation Sale, traditionally known for its load lots of top-notch yearlings.  Quality was outstanding and weigh ups were excellent throughout the day.  The load lots were aggressively pursued and scattered across a handful of buyers.  Feeder supply included 64 percent steers and 58 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 557 to 596 pounds brought $165.50 to $175 and feeder steers 802 to 842 pounds brought $139.75 to $142.85.  Medium and Large 1 feeder heifers 702 to 741 pounds brought $133.25 to $139.75. 

New crop hay is being purchased as quickly as it has been sold in Iowa.  According to the USDA, overall the quality has been below what growers have been hoping to purchase.  New crop straw is in short supply as weather has been delaying wheat harvest.  Alfalfa supreme small squares brought $280 to $315, Premium small squares are $265, good small squares brought $160 to $200 and good large squares brought $210 to $230, with good large rounds bringing $250.  Alfalfa/Grass Premium small squares brought $320 to $350, large squares brought $200 to $280, Good small squares brought $170, large squares brought $140 to $155.  Grass hay, Premium large squares brought $320 to $350, Good small squares brought $140 to $160, large squares brought $135 to $150.  Wheat straw, large squares brought $135 to $140 and small squares brought $175 to $180. 

Boxed beef closed weak to lower on light demand and moderate to heavy offerings.  Choice closed $1.58 lower at $217.67 and Select closed $.56 lower at $194.80.  The Choice/Select spread is $22.87.  Estimated cattle slaughter is 118,000 head – down 2,000 on the week and up 1,000 on the year.  Saturday’s estimated kill is 87,000 head – up 27,000 on the week and down 9,000 on the year. 

Lean hog futures closed lower on long-term supply and demand concerns.  While there are expectations for demand for US pork to increase as China continues to struggle with African Swine Fever, the market has yet to see those purchases realized.  July lean hogs closed $1.42 lower at $72.12 and August lean hogs closed $1.32 lower at $77.05. 

Cash hogs closed lower with light negotiated purchase totals.  Supply and demand continue to be the focus of the market.  The latest export report from the USDA wasn’t great news.  The market has yet to see a significant uptick in pork exports, and that, combined with heavy supplies and extremely large slaughter runs weighs heavily on prices.  African Swine Fever continues to spread throughout China and Asia and the market is still hopeful demand for US pork on the global market will increase and give pork the support it needs for prices to move higher.  Barrows and gilts at the National Daily Direct closed $1.32 lower with a range of $58 to $67 for a weighted average of $65.82.  Prices at the Iowa/Southern Minnesota, Western Corn Belt, and Eastern Corn Belt were not reported at midday due to confidentiality. 

The USDA says early weaned pigs were steady this week and all feeder pigs were $2 per head lower.  Demand was moderate for moderate offerings and receipts included 40 percent formulated prices.  Total Composite formula range is $31.69 to $46.50 for an average of $40.08.  Total composite cash range was $22 to $39 for an average of $31.92.  The weighted average for all early weaned pigs was $35.30 and the average for all feeder pigs was $51.76. 

Midwest cash hog markets are closed today.  At Illinois, slaughter sow prices were steady at $20 to $33 with moderate to good demand for light to moderate offerings.  Barrow and gilt prices were steady at $40 to $47 with moderate demand for moderate offerings. 

Pork values closed higher – up $1.69 at $73.17.  Picnics jumped $8.15 today.  Ribs and loins were sharply higher.  Hams were firm.  Bellies and butts were weak to lower.  Estimated hog slaughter is 444,000 head – down 8,000 on the week and 6,000 on the year.  Saturday’s estimated kill is 192,000 head – up 135,000 on the week and 41,000 on the year.