Market News

Cattle futures higher to end the week

At the Chicago Mercantile Exchange, live and feeder cattle were up ahead of Friday’s On Feed numbers from the USDA.

Direct cash cattle trade had a solid finish to the week with business reported in all three major feeding areas.  For the week, live deals were marked at $187, $1 higher than the prior week’s weighted averages.  Dressed deals were at $290, fully steady with the previous week’s weighted average basis.

At the Ogallala Livestock Auction in Nebraska, flyweight steers were $10 to $15 higher.  Five-weight steers were $5 lower, steers 550 pounds and weaned six-weight calves were $5 to $10 higher.  Heavier weights were $3 to $5 lower.  Yearlings over 700 pounds were $2 to $5 higher.  Heifer calves  less than 600 pounds were $7 to $9 higher.  Yearling heifers were $4 to $7 higher, however, there were instances of $2 lower on some heifers 600 to 650 pounds.  The USDA says demand was moderate to good from start to finish and the market was active both in-house and online.  Receipts were up on the week and the year.  Feeder supply included 60% steers with 64% of the offering over 600 pounds.  Medium and Large 1 feeder steers 608 to 641 pounds brought $297 to $311 and feeder steers 711 to 737 pounds brought $268.50 to $288.50.  Medium and Large 1 feeder heifers 765 to 796 pounds brought $230.50 to $249 and feeder heifers 805 to 847 pounds brought $243.50 to $258.

In Nebraska last week, bales of grass and alfalfa hay didn’t see much movement.  Dehydrated, sun-cured alfalfa pellets, and ground and delivered hay was steady.  The USDA says there was widespread heavy precipitation that fell across the High Plains, which could help improve conditions.  Alfalfa, good, large rounds brought $70 to $85.  Alfalfa/grass mix, large rounds, brought $80 to $85.  Prairie/Meadow grass, premium, large rounds brought $90. Prairie/Meadow grass, premium, small squares brought $8.  Prairie/Meadow grass, fair/good brought $60 to $70 and $60.  In the East, alfalfa, pellets, 17% dehydrated brought $350 and pellets 17%, sun-cured brought $280.  Alfalfa, premium, ground, brought $100.  Alfalfa, premium, medium squares brought $90.  Small squares brought $8.  Alfalfa, good, large rounds, brought $100 and $85.  In the Platte Valley area, alfalfa, ground, brought $130.  Pellets, 17% dehydrated, brought $300 to $325.  Alfalfa, good, large rounds brought $85 to $90.  In the West, alfalfa, ground, brought $140.  Alfalfa, premium, large squares brought $160 to $170.  Alfalfa, good, large squares, brought $110 to $135.  Alfalfa, fair, large squares brought $95.. 

Boxed beef closed mixed with light to moderate demand for fairly light offerings.  Choice was $.62 higher at $307.41 and Select closed $.85 lower at $272.07.  The Choice/Select spread was $35.34.  Estimated cattle slaughter was 117,000 head – down 3,000 on the week and up about 4,000 on the year.

Lean hog futures ended the day ended the day mostly higher on spread trade and the higher midday move in pork.

Cash hogs had no comparison with a fairly light negotiated run.  The cash hog market has been pretty sluggish as processors weren’t in a situation where they’ve had to work to move needed numbers.  Demand for U.S. pork on the global market has been pretty strong, which does help support the market.  But domestic demand remains inconsistent and that’s been problematic.  The industry also continues to monitor the availability of market-ready hogs.  Barrows and gilts at the National Daily Direct had a base range of $78 to $86 and a weighted average of $82.72 and the Western Corn Belt had no comparison but a weighted average of $82.70.  Prices at the Iowa/Minnesota and 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 and feeder pigs were steady.  Demand was good for moderate offerings.  The weighted average for all early-weaned pigs was $56.82 and the weighted average for all feeder pigs was $69.67. 

Butcher hog prices at the Midwest cash markets were sharply lower, down $5 at $55.  At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed lower – down $1.90 at $91.77. Ribs were sharply lower.  Loins, butts, hams, and bellies were also lower.  Picnics were higher. Estimated hog slaughter was 485,000 head – down 1,000 on the week and up about 36,000 on the year.