Market News

Cattle futures fall again Friday

At the Chicago Mercantile Exchange, live and feeder cattle were down on the week’s direct business and lower midday boxed beef. October lives closed $2.07 lower at $175.17 and December live cattle closed $2.02 lower at $174.70.  October feeder cattle closed $3.62 lower at $230.95 and November feeder cattle closed $3.65 lower at $228.02. 

There was some light to moderate direct cattle trade that took place on Thursday and Friday.  In the South live deals were marked at $181, $2 lower than the previous week’s weighted averages.  Northern dressed business was marked at mostly $288, $2 lower than the prior week’s weighted average basis in Nebraska. 

In Oklahoma last week, steers were very uneven, from $3 lower to $4 higher.  Heifers were $1 to $5 higher.  Feeder cattle and calves were lightly tested.  The USDA says demand was moderate to good for late-week sales.  Receipts were down on the week, but up on the year.  Feeder supply included 52% steers and 61% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 651 to 698 pounds brought $231 to $274 and feeder steers 851 to 896 pounds brought $222 to $240.  Medium and Large 1 feeder heifers 700 to 748 pounds brought $215 to $246.25 and feeder heifers 753 to 794 pounds brought $215 to $239.50. 

In Missouri this past week, hay movement remained sluggish as supplies are moderate to heavy.  Late season cuttings are adding to the supply.  Hay stocks are in a much better position than they were a year ago for Missouri producers.  The drought footprint in the state has increased.  Alfalfa, supreme, medium squares brought $250 to $300.  Alfalfa, supreme, small squares brought $8 to $12.  Alfalfa, premium, medium squares brought $200 to $250.  Alfalfa, good, large rounds brough $150 to $200.  Alfalfa, good, small squares brought $5 to $10.  Alfalfa, fair, large rounds brought $125 to $150.  Mixed grass hay, good/premium, brought $125 to $200.  Mixed grass, fair/good, large rounds brought $80 to $125.  Mixed grass, fair/good, small squares brought $3.50 to $8.

Boxed beef closed lower on light demand for moderate offerings.  Choice was $2.10 lower at $309.41 and Select closed $.66 lower at $296.12.  The Choice/Select spread is $13.29. Estimated cattle slaughter was 123,000 head – down 3,000 on the week and down about 2,000 on the year.  Saturday’s estimated kill is 43,000 head – up 29,000 on the week and down about 4,500 on the year.

Lean hog futures ended the day mixed on spread trade, the steady to lower cash business, and the higher midday pork. October lean hogs closed $1.20 lower at $79.50 and December lean hogs closed $.87 lower at $71.22. 

Cash hogs closed lower with a moderate negotiated run.  Processors likely had most of their needed numbers and weren’t forced to bid up and get more aggressive in their procurement efforts.  Domestic demand remains a concern for the industry.  But strong demand for U.S. pork has helped provide price support.  Monthly trade data for July had pork exports up in both volume and value. Barrows and gilts at the National Daily Direct closed $1.05 lower with a base range of $67 to $79 and a weighted average of $76.79; the Iowa/Minnesota closed $.60 lower with a weighted average of $77.28; the Western Corn Belt closed $.51 lower with a weighted average of $77.24; the Eastern Corn Belt closed $2.60 lower with a weighted average of $76.13.

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs and feeder pigs were $1 per head higher.  Demand was good for moderate offerings.  The weighted average for all early-weaned pigs was $33.75 and the weighted average for all feeder pigs was $54.86.

Butcher hog prices at the Midwest cash markets are steady at midday. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $51 to $63.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed higher – up $1.23 at $96.10.  Hams were sharply higher.  Loins were also higher.  Ribs were sharply lower.  Butts, picnics, and bellies were modestly lower. Estimated hog slaughter was 482,000 head – up 6,000 on the week and up about 4,000 on the year.  Saturday’s estimated kill is 395,000 head – up 358,000 on the week and up about 47,000 on the year.