Market News

Cattle futures down on cash, wholesale pressure

Chicago Mercantile Exchange live cattle futures were sharply lower on the recent lower beef trend, watching direct cash cattle business develop. Business in the North was steady to lower, while activity in the South waited until after the close. December was down $1.97 at $114.57 and February was $2.07 lower at $117.80.

Feeder cattle were sharply lower on the same factors as the live pit. November was $1.17 lower at $149 and January was down $2.47 at $143.80.

Direct cash cattle business was light to moderate by Friday afternoon, with most of the week’s trade developing after the close at the CME. Live sales in the South ranged from $114 to $115, mostly at $114, $2 lower than the previous week. Business in the North was at $113 to $114.50 live, $1.50 to $2 lower, and mainly $179 to $180 dressed, steady to $1 lower than the previous week’s weighted average in Nebraska. Depending on how the numbers look Monday, packers might be short bought heading into the week.

Boxed beef closed lower on light demand for light to moderate offerings. Choice was down $.87 at $215.20 and Select was $.39 lower at $198.72. The estimated cattle slaughter of 114,000 head was down 3,000 on the week, but up 2,000 on the year.

At the Lexington Livestock Market feeder cattle sale in Nebraska Friday, compared to the previous week, steer calves weighing more than 500 pounds were $4 to $9 lower, while heifer calves weighing more than 400 pounds were steady to $7 lower. The USDA says demand was moderate to good, best for preconditioned cattle. Medium and Large 1 feeder steers weighing 500 to 600 pounds sold at $166 to $172.50 and 600 to 630-pound steer calves ranged from $156.25 to $164.50. Medium and Large 1 feeder heifers weighing 400 to 500 pounds brought $153 to $167 and 500 to 600-pound heifers were reported at $146 to $155.50.

The USDA says hay growers in Iowa are selling “sparingly”, with top quality supplies hard to find at auction, supporting prices for lower quality hay. Premium small squares of alfalfa sold at $300 to $360, with large squares at $240 to $280 and good quality small squares at $185 to $195. Good quality large rounds of alfalfa and grass ranged from $105 to $130. Premium large squares of grass were reported at $235 to $240, with good quality small squares at $180 to $190, large squares at $180 to $185, and large rounds at $190 to $200. Small squares of oat straw ranged from$195 to $200 and small squares of wheat straw were pegged at $225 to $250. In Missouri, hay movement was slow for the week. Prices were steady, with light to moderate supply and demand. Large rounds of supreme quality alfalfa ranged from $180 to $225, with premium at $150 to $200 and good quality at $120 to $160. Large rounds of good quality mixed grass hay were reported at $100 to $150, with fair to good at $75 to $125. Large rounds of good quality bromegrass brought $120 to $150. Alfalfa and grass hay were steady in Nebraska, with ground and delivered products steady to $10 higher and dehydrated pellets steady to $5 higher. The USDA says buyer inquiry and demand were higher in most of the state. In east and central Nebraska, good large squares of alfalfa sold at $180 with fair quality at $115 and good large rounds at $90 to $105, $125 to $140 delivered. Premium large rounds of grass hay ranged from $100 to $105 with good large rounds at $85 to $90 and premium small squares at $160 to $170. Cornstalk bales were pegged at $52.50 to $60, with soybean stubble at $47.50. 17% protein dehydrated alfalfa pellets sold at $230 to $240. In the Platte Valley, good large rounds of alfalfa sold at $105 to $115, with some at $125. Bales of cornstalks brought $60 to $65, while ground and delivered cornstalks were reported at $95 to $100. Ground and delivered alfalfa brought $140 to $145 and ground and delivered mixed alfalfa and stubble were pegged at $130 to $135. 17% protein dehydrated alfalfa pellets sold at $220. In western Nebraska, premium large squares of alfalfa were reported at $170 to $180 with good quality at $150 to $160 and good large rounds at $130 to $145. Good to premium large squares of alfalfa and orchard grass ranged from $180 to $200. Large squares of at hay brought $125. Ground and delivered alfalfa was pegged at $150 to $155.

Lean hog futures were mostly lower on spread adjustments, the lower midday pork, and the quiet end of the week cash business. December was up $.17 at $55.80 and February was down $.62 at $59.50.

Cash hogs were steady to lower, with light to moderate closing negotiated purchases for the major direct markets. Buyers ended the week a lot like they started it, using the market ready supplies for leverage, while watching wholesale business. Saturday’s kill was estimated at 218,000 head, for a weekly kill of 2.589 million, putting more pork on an already saturated market.

Pork closed $1.30 lower at $70.27. Bellies dropped another $4.27, with loins, butts, and picnics also sharply lower. Ribs and hams were firm. The estimated hog slaughter of 473,000 head was up 10,000 on the week and 18,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $.45 lower at $48 to $54.75 for a weighted average of $53.24, the Western Cornbelt was down $.70 at $48 to $54.75 with an average of $52.89, and national direct business was $.97 lower at $48 to $54.75 for an average of $53.35. Butcher hogs at the Midwest cash markets were steady at $43. Illinois direct sows were steady at $29 to $44 on moderate demand for light offerings. Barrows and gilts were $1 lower at $30 to $38 on moderate demand and offerings. Boars ranged from $7 to $18.

The USDA says early weaned pigs and all feeder pigs were $3 higher on the week, with moderate demand for moderate offerings. The formula range for all early weaned pigs was $37 to $46.25 with an average $40.48 and the cash range was $25 to $48 with an average of $43.45, for a total weighted average of $42.26. The cash range for all feeder pigs was $38 to $50 with an average of $43.41.