Market News

Cattle futures finish the week lower

At the Chicago Mercantile Exchange, live and feeder cattle were lower on the drop in cash and wholesale business.  February live cattle closed $1.80 lower at $197.75 and April lives closed $2.27 lower at $194.25.  March feeder cattle closed $1.62 lower at $266.35 and April feeders closed $1.55 lower at $266.42. 

There was a light, scattered direct cash cattle trade that took place throughout the week.  Live deals were marked at $202 to $203, $3 to $4 lower than the previous week’s weighted averages.  Dressed deals were at mostly $320 to $322, $5 to $7 lower than the prior week’s weighted average basis in Nebraska. 

At the Herreid Livestock Market in South Dakota, there was a very light offering of feeder steers as weather was a factor.  The best test was on heifers 650 to 699 pounds, which were mostly steady.  Other weight classes were not well compared.  The USDA says demand was good for packages on the few loads offered.  Quality varied, but were mostly average to attractive and flesh was moderate to moderate plus.  The market, overall, was active.  Receipts were down on the week and the year.  Feeder supply included 61% steers and 74% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 653 to 685 pounds brought $308 to $317.50 and feeder steers 721 to 743 pounds brought $302.25 to $308.  Medium and Large 1 feeder heifers 656 to 683 pounds brought $276 to $300 and feeder heifers 725 to 726 pounds brought 4269.50 to $272.50. 

In Missouri last week, the supply of hay remains moderate to heavy with light to moderate demand.  Prices are unevenly steady to weak.  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, brought $150 to $200.  Alfalfa, good, small squares brought $6 to $10.  Alfalfa, fair, large rounds brought $125 to $150.  Mixed grass, good/premium, large rounds 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.  Mixed grass, large rounds brought $25 to $50. 

Boxed beef closed lower with light demand for light offerings.  Choice was $2.70 lower at $314.70 and Select closed $2.70 lower at $307.14.  The Choice/Select spread is $7.56.  Estimated cattle slaughter was 103,000 head – up 3,000 on the week and down more than 17,000 on the year.  Saturday’s estimated kill is 4,000 head – down 4,000 on the week and up more than 1,000 on the year.

Lean hog futures ended the day mostly lower on spread trade with weakness in cash business.  February lean hogs closed $.10 higher at $89.47 and April lean hogs closed $.50 lower at $92.60. 

Cash hogs closed lower with a light negotiated run.  Processors likely had needed numbers on hand and didn’t need to get aggressive in their procurement efforts.  Slaughter pace has been up as the industry works to meet the strong demand for U.S. pork on the global market.  However, there are lingering concerns about strength in domestic-demand over the long-term. Barrows and gilts at the National Daily Direct were $2.52 lower with a base range of $80 to $92 and a weighted average of $88.23; the Iowa/Minnesota closed $1.81 lower with a weighted average of $88.92; the Western Corn Belt closed $1.98 lower with a weighted average of $88.75; the Eastern Corn Belt closed $2.93 lower with a weighted average of $87.89.

According to the USDA’s Weekly Feeder Pig Report early-weaned pigs were steady to weak and feeder pigs were $6 higher.  The USDA says demand was steady for moderate offerings.  The weighted average for early-weaned pigs was $78.01 and the weighted average for all feeder pig was $112.33. 

Butcher hog prices at the Midwest cash markets are steady at $62. 

Pork values closed higher – up $1.12 at $101.99.   Bellies were sharply higher.  Picnics and hams were higher.  Loins, butts, and ribs were all lower. Estimated hog slaughter was 484,000 head – even on the week and up about 4,500 on the year.  Saturday’s estimated kill is 97,000 head – down 12,000 on the week and down about 27,500 on the year.