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More losses in hog futures

Chicago Mercantile Exchange live cattle futures were mostly lower ahead of the USDA’s biannual Cattle Inventory report, unable to follow through on early modest gains. February was down $.40 at $121.37 and April was $.52 lower at $119.67.

Feeder cattle were up on an oversold bounce and the recent lower move in corn. March was $.42 higher at $136.07 and April was up $.40 at $137.52.

Direct cash cattle business was light, mostly in the north. Trade was reported mostly at $195 on the dressed basis in Nebraska, $4 lower than the previous week, with some of those for delivery the week of February 10th. There was clean-up in the south at mostly $122 live. Thursday’s trade was light to moderate in the south, mostly at $122 live, steady with Wednesday and down $2 on the week, with lighter activity at $122 to $122.50 live in the north. Dressed business was very light, primarily at $194 to $195, but without enough movement to establish a trend.

Boxed beef closed lower with light demand and offerings. Choice was down $.35 at $213 and Select was $.82 lower at $210.66. The estimated cattle slaughter of 122,000 head was steady on the week and up 17,000 on the year.

For the week in Missouri, feeder steers and heifers were steady to $5 lower. The USDA says the supply was light to moderate, with receipts at several midweek markets limited by more winter weather, and moderate to good demand. Feeder receipts were 24,553 head, compared to 21,006 the week before. 55% of the feeder offering were steers and 54% of the run weighed less than 600 pounds. Medium and Large 1 feeder steers weighing 500 to 600 pounds were reported at $124 to $181 and 600 to 700-pound steers sold at $128 to $167.50. Medium and Large 1 feeder heifers weighing 500 to 600 pounds brought $121 to $159 and 600 to 700-pound heifers ranged from $115 to $147.25.

The USDA says hay prices in Missouri were steady with light to moderate demand for a moderate to heavy supply. The USDA says hay feeding is heavy, but movement is slow, with most farmers having near-term needs covered. Large rounds of supreme quality alfalfa were reported at $180 to $200 with premium at $160 to $180. Large rounds of good quality mixed grass and hay sold at $80 to $120 with good quality brome grass at $80 to $120.

For Nebraska, baled hay, ground and delivered hay, and alfalfa pellets were steady. The USDA says demand for hay bales in the central and eastern portions of the state was light to moderate, with better demand in western areas and some of that being shipped out of state. Demand was “really good” for dehydrated and sun-cured pellets and light to good for ground products. In eastern and central Nebraska, good large rounds of alfalfa sold at $100 to $115. Good large rounds of prairie grass were pegged at $90 to $105 with premium small squares at $170 to $180. 17% protein dehydrated pellets brought $320 to $330 with 15% protein sun-cured pellets at $290. In the Platte Valley, good large rounds of alfalfa were reported at $105 to $110, with ground and delivered alfalfa at $140 to $145. Ground and delivered alfalfa and corn stalk mix sold at $125 to $135 with ground and delivered cane and stubble mix at $115. 17% protein dehydrated pellets brought $270 to $275, with a few up to $285, while 15% protein sun-cured alfalfa pellets were pegged at $250 to $270. In western parts of the state, good large squares of alfalfa ranged $160 to $175 with good large rounds $120 to $130. 15% protein sun-cured pellets sold at $255.

In South Dakota, alfalfa and grass hay were steady. The USDA says demand was good for all types and qualities, but much better for higher quality supplies, which are limited, and good demand for straw and corn stalks. Supreme large squares of alfalfa sold at $300, with premium at $250 and good at $225 to $235. 15% protein sun-cured alfalfa pellets brought $220, with 17% protein at $225 and 17% protein alfalfa meal at $230. Premium large squares of grass were pegged at $160, with premium alfalfa and grass mx at $252.50 per ton. Large rounds of straw were reported at $100 with large rounds of corn stalks at $50 to $60.

Lean hog futures were sharply lower with expanded trading limits on the large supply of pork and the continued concerns about demand from China, along with another round of cash and wholesale pressure during the session. February was down $4.17 at $57.12 and April was $4.22 lower at $61.60.

Cash hogs were steady to lower with a moderate to heavy set of negotiated sales for a Friday. The big uncertainties for the industry continue to be supply and demand based. There’s plenty of pork on the market, packer margins are strong, and buyers want to keep chain speed running at a high level, but domestic demand has softened and export demand from China hasn’t met most expectations. Last week’s sales were disappointing, but physical shipments were solid. The spread of coronavirus in China is creating continued concerns about demand.

Pork closed $1.33 lower at $69.57. Bellies dropped $6.12, with picnics, ribs, and hams lower. Loins were firm and butts were higher. The estimated hog slaughter of 484,000 head was down 10,000 on the week but up 17,000 on the year.

National direct barrows and gilts closed $1.71 lower at $46 to $55.94 with an average of $55.94, Iowa/Southern Minnesota was down $.29 at $53.15 and the Western Corn Belt was $.10 lower at $53.09. The Eastern Corn Belt had no recent comparison at $53.59. Butcher hogs at the Midwest cash markets were $1 lower at $35. Illinois direct sows were steady at $13 to $22 on moderate to good demand for moderate to heavy offerings. Barrows and gilts were steady at $31 to $39 with moderate to good demand for moderate offerings. Boars ranged from $31 to $39.

The USDA says early weaned pigs were $8 lower on the week and all feeder pigs were steady, with light demand for moderate offerings. On the formula basis, the range for early weaned pigs was $40.50 to $65.15 with an average of $49.59, and on the cash basis, the range was $29 to $67.25 with an average of $51.67, for a weighted average of $50.28 on all early weaned pigs. The cash range for feeder pigs was $63 to $66 with an average of $65.18.

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