Market News

A strong finish for cattle futures, hogs mostly higher

At the Chicago Mercantile Exchange, live and feeder cattle closed higher, supported by the week’s stronger cash business.  Feeders had additional support from the lower move in corn. February live cattle closed $.72 higher at $178.45 and April live cattle closed $.97 higher at $181.67.  March feeders closed $1.52 higher at $239.70 and April feeders closed $1.67 higher at $245.60. 

Direct cash cattle trade activity was relatively quiet Friday following the active day on Thursday.  For the week, live deals in the South were marked at $174, to mostly $175, $2 higher than the previous week’s weighted averages.  Northern dressed business was at mostly $277, $3 higher than the prior week’s weighted average basis. 

At the Ogallala Livestock Auction in Nebraska, steers were $5 to $14 higher, except steers 600 pounds, which were $7 lower. Heifers were $3 to $12 higher, except 500-pound heifers were $16 lower and heifers 600 pounds were $8 lower. The USDA says demand was good with a good selection offered. Receipts were up on the week and the year.  Feeder supply included 60% steers and 53% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 602 to 648 pounds brought $283 to $300 and feeder steers 701 to 742 pounds brought $246 to $266.  Medium and Large 1 feeder heifers 517 to 545 pounds brought $276.50 to $298 and feeder heifers 602 to 640 pounds brought $244 to $265.50.

In Nebraska, alfalfa and grass hay was steady.  Ground and delivered hay and alfalfa pellets were steady.  The USDA says Demand was mostly light to instances of moderate on round and large squares with good demand for small square bales.  The market has been sluggish recently, with little interest form prospective buyers.  Alfalfa, good, large rounds brought $150.  Prairie/Meadow grass, large rounds brought $165.  Prairie/Meadow grass, premium, small squares brought $8.  Prairie/Meadow grass, good, large rounds brought $140 to $160.  In the East, alfalfa, premium, small squares brought $11.  Alfalfa, pellets, 17% sun-cured brought $330.  Brome grass, small squares brought $12 to $14.  In Platte Valley, alfalfa, good, large rounds brought $160.  Alfalfa, ground, brought $205.  Pellets, 17% dehydrated, brought $375.  Pellets, 17% sun-cured brought $375.  In the West, Alfalfa, premium/supreme, large squares brought $200.  Alfalfa, fair/good, large squares brought $140.  Alfalfa, fair, large squares brought $120.  Alfalfa, ground, brought $150 to $180.

Boxed beef closed higher on solid demand for moderate offerings.  Choice was $1.85 higher at $300.53 and Select is $1.28 higher at $289.13.  The Choice/Select spread is $11.40.   Estimated cattle slaughter was 121,000 head – even on the week and down about 1,000 on the year.  Saturday’s estimated kill is 5,000 head – down 29,000 on the week and down about 26,000 on the year.

Lean hog futures closed mostly higher, with stronger pork values and optimism about demand. February lean hogs closed $.62 higher at $74.92 and April lean hogs closed $.70 higher at $83.25. 

Cash hogs closed higher with a moderate negotiated run. The cash hog market found some strength this week as processors bid up to move needed numbers.  Demand for U.S. pork remains relatively strong on the global market, but long-term demand strength concerns do linger.  Other factors that could be limiting any upside potential – are ample supplies of market-ready hogs and heavier weights. Barrows and gilts at the National Daily Direct are $1.64 higher with a base range of $48 to $60 and a weighted average of $56.27; the Iowa/Minnesota was $1.97 higher with a weighted average of $57.23; the Western Corn Belt was $2.53 higher with a weighted average of $57.16.  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 $4 per head higher.  All feeder pigs were mostly steady.  Demand was moderate for moderate offerings.  The Total Composite cash range was $20 to $50 for a weighted average of $40.42.  The Total Composite formula range was $31.16 to $66.14 for a weighted average of $48.08.  The weighted average for all early-weaned pigs was $43.06 and the weighted average for all feeder pigs was $47.85. 

Butcher hog prices at the Midwest cash markets were steady at $39. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $23 to $35.  Barrows and gilts were steady with moderate demand for moderate offerings at $24 to $34.  Boars ranged from $10 to $20 and $5 to $10. 

Pork values closed higher – up $.60 at $89.51. Butts were sharply higher.  Bellies, hams, loins, and picnics were all higher.  Ribs were lower. Estimated hog slaughter was 490,000 head – up 13,000 on the week and about even on the year.  Saturday’s estimated kill is 294,000 head – down 54,000 on the week and up about 201,000 on the year.