Market News

Cattle futures higher to end the week

At the Chicago Mercantile Exchange, live and feeder cattle were up, with boxed beef sharply higher during the session. June live cattle closed $1.05 higher at $212.22 and August live cattle closed $.90 higher at $206.75.  August feeder cattle closed $1.77 higher at $297.60 and September feeder cattle closed $1.65 higher at $296.27. 

Direct cash cattle trade was relatively quiet on Friday.  For the week, live deals in Texas ranged from $218 to $220, $1 lower to $1 higher than the previous week’s business.  Live deals in Kansas were at mostly $220, $1 higher than the prior week’s weighted averages.  Dressed deals in Nebraska were at mostly $358, $2 higher than the previous week’s weighted average basis in Nebraska. 

In Oklahoma, for the week, feeder steers and heifers were $2 to $6 higher.  Steer calves weighing more than 450 pounds were $6 to $10 higher, while steer calves less than 450 pounds were $1 to $6 lower.  Heifer calves weighing more than 450 pounds were steady to $2 higher and heifers weighing less than 450 pounds were $6 to $10 lower.  Receipts were up on the week and the year.  Feeder supply included 56 percent steers, and 74 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 650 to 696 pounds brought $316 to $374 and feeder steers 850 to 899 pounds brought $258 to $304.50.  Medium and Large 1 feeder heifers 650 to 699 pounds brought $253 to $365 and feeder heifers 800 to 848 pounds brought $240 to $282. 

In Nebraska, alfalfa and grass hay was fully steady with instances of $10 higher.  Ground and delivered hay, sun-cured, and old crop Dehy alfalfa pellets were steady.  The USDA says demand was good to very good. Dry weather has continued and that’s adding some stress to ranges, especially this early in the year.  There’s still a lot of carry over of old crop hay and some new crop alfalfa has been cut.  Alfalfa, ground, brought $120 to $130.  Alfalfa, premium/supreme, large rounds brought $130.  Alfalfa, good, large rounds brought $85 and $100.  Alfalfa/triticale mix, good, large round, brought $100.  In the East, alfalfa, pellets 17% dehydrated, brought $320.  Pellets 17% sun-cured brought $250 to $260.  Alfalfa, premium/supreme, chopped, brought $1.10.  Alfalfa, premium, small squares brought $9.50.  In the Platte Valley area, alfalfa, ground, brought $130.  Pellets 17% dehydrated brought $305.  Pellets 17% sun-cured brought $290.  Alfalfa, good, large rounds, brought $80 to $90.  In the West, alfalfa, ground, brought $140.  Alfalfa, supreme, large squares, brought $250.  Alfalfa, premium, large squares brought $170.

Boxed beef closed sharply higher with very good demand for moderate offerings.  Choice was $2.59 higher at $352.49 and Select closed $3.21 higher at $342.39.  The Choice/Select spread is $10.10.  Estimated cattle slaughter was 105,000 head – up 17,000 on the week and up about 3,500 on the year.  Saturday’s estimated kill is 2,000 head – even on the week and down nearly 8,000 on the year. 

Lean hog futures closed mixed on spread trade amid ongoing questions about demand. June lean hogs closed $.37 lower at $100.32 and July lean hogs closed $.05 higher at $104.17. 

Cash hogs closed sharply lower with a fairly light negotiated run.  Processors appear to be in the driver’s seat and didn’t have to get aggressive in their procurement efforts.  Prices reflected that.  Demand for U.S. pork remains the biggest market mover.  Global demand, outside of China, has been relatively strong.  But what happens with China will depend on how the tariff situation plays out.  On the domestic demand side, there’s optimism that it will see a boost with the summer grilling season just around the corner.  Strong demand is needed to provide price support. Barrows and gilts at the National Daily Direct were $6.69 lower with a base range of $86 to $95 and a weighted average of $88.10.  Prices at the Regional Direct Markets were not reported due to confidentiality.

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were steady to firm and feeder pigs were steady to firm.  Demand was moderate to good with light to moderate offerings.  The weighted average for all early-weaned pigs was $48.76 and the weighted average for all feeder pigs was $80.05. 

Butcher hog prices at the Midwest cash markets are steady at $66. 

Pork values closed higher – up $.40 at $100.12.  Hams, picnics, butts, and ribs were all higher.  Bellies and loins were lower. Estimated hog slaughter was 475,000 head – down 2,000 on the week and up about 9,000 on the year.  Saturday’s estimated kill is 20,000 head – down 18,000 on the week and down about 18,000 on the year.