Market News

Midday cash livestock markets

Direct cash cattle trade activity is quiet this week.  Bids and asking prices have yet to be established.  It’s likely significant trade volume will be delayed until at least midweek or later.  Beef demand often goes the way of the economy and with the latest Jobs Report and the nearly 10 million new jobless claims over the last two weeks, it doesn’t bode well for cattle prices.  Last week’s very, very light activity has the industry wondering if the packers will continue to pull back on production levels as the number of cases of COVID-19 continue to rise.  It’s a shortened holiday week and it appears to be another week of limited business.  The limited business last week saw live deals at $112, roughly $7 lower than the prior week’s weighted averages.  There were a handful of dressed deals in the North around $180, generally $9 lower than the previous week’s weighted averages basis in Nebraska. 

Boxed beef is weak to lower at midday on light demand for moderate to heavy offerings.  Choice is $.70 lower at $229.74 and Select is $3.05 lower at $212.70.  The Choice/Select spread is $16.95. 

In South Dakota last week, feeder steers under 850 pounds were $5 to $10 lower, over 850 pounds were $10 to $17 lower.  Feeder heifers were $6 to $10 lower.  The USDA says demand was light to moderate, with the best demand on lighter weight cattle that have more time to reach finished weights.  Demand for heavier-weight cattle has dropped off as the futures market continues to decline.  While price levels are lower, the market has remained pretty active.  Receipts last week were 23,342, that was up on both the week and the year.  Feeder supply included 63 percent steers and 89 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 655 to 698 pounds brought $126.50 to $160.50, feeder steers 753 to 799 pounds brought $116.25 to $142, and feeder steers 854 to 899 pounds brought $107.25 to $131.50.  Medium and Large 1 feeder heifers 650 to 699 pounds brought $115.50 to $142.50 and feeder heifers 805 to 847 pounds brought $105.50 to $124. 

Cash hogs opened firm with fairly light negotiated numbers.  Supplies are heavy and packer activity was limited last week.  That’s been really tough on prices.  Easter traditionally means significantly increased pork demand, but with many states pushing for its residents to remain healthy at home, holiday gatherings will be limited and could significantly impact pork demand.  Social distancing restrictions are likely to remain in place for the next several weeks, and that continues to pressure overall demand.  The industry continues to look for a silver lining… With short global protein supplies because of African swine fever, the US pork industry, is well-positioned to meet those needs.  That is as long as production isn’t disrupted.  Barrows and gilts at the National Daily Direct opened $.31 higher with a base range of $42 to $43.50 for a weighted average of $43.15.  Prices at the regional direct markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady today at $33. In Illinois, slaughter sow prices were weak, with light demand for heavy offerings at $25 to $40.  Barrow and gilt prices were weak, with light demand for moderate offerings at $20 to $25.   

Pork values opened sharply higher – up $2.01 at $59.38.  Hams, picnics, and bellies are sharply higher.  Butts and ribs are firm. Loins are lower.