Market News

Cattle futures higher to finish the week

At the Chicago Mercantile Exchange, live and feeder cattle were up waiting on direct trade to develop.  Feeders had additional support from the lower move in corn. October live cattle closed $1.85 higher at $219.67 and December live cattle closed $2.62 higher at $222.22.  October feeder cattle closed $4.95 higher at $332.50 and November feeder cattle closed $5.40 higher at $328.17. 

It was a very slow week for direct cash cattle business.  Dressed deals in the North ranged from $345 to $355 which is steady to $10 higher than the prior week’s weighted average basis, but most of the deals were marked at $350, that’s $5 to $6 higher.   Southern live trade hadn’t been reported through the end of the day Friday.

At the Valentine Livestock Auction in Nebraska, there was no trend available.  The day’s offering consisted of several preg-checked and guaranteed open heifers, weaned fall calves, and yearlings.  The USDA says there were several buyers in house, but limited online activity.  Receipts were down from the most recent sale, but up on the year.  Feeder supply included 67 percent steers with 98 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 805 to 834 pounds brought $357 to $382.50 and feeder steers 906 to 949 pounds brought $322 to $357.  Medium and Large 1 feeder heifers 858 to 894 pounds brought $311 to $327 and feeder heifers 902 to 933 pounds brought $301 to $314. 

In South Dakota last week, the USDA says there was good to very good demand for all classes of hay.  The best demand was in the western part of the state where the drought has been more severe and hay supplies were even more limited. Drought has also impacted the eastern part of the state.  Alfalfa, premium, large rounds, brought $210.  Alfalfa, fair, large rounds, brought $180.  Grass, premium, large rounds brought $200.  Grass, good, large rounds, brought $175. 

Boxed beef closed mixed with light and moderate demand for moderate offerings.  Choice was $2.43 lower at $375.94 and Select was $1.07 higher at $353.13.  The Choice/Select spread is $22.81. Estimated cattle slaughter was 106,000 head, up 9,000 on the week and up about 5,000 on the year.  Saturday’s estimated kill is 70,000 head, up 53,000 on the week and up about 63,000 on the year. 

Lean hog futures finished the day lower on profit taking and the inconsistent wholesale demand. October lean hogs closed $1.62 lower at $81.52 and December lean hogs closed $1.65 lower at $72.70. 

Cash hogs closed lower with a very light negotiated run. The cash hog market has struggled with consistency, that’s not a surprise given the inconsistent wholesale business.  Plus, processors have leverage and can move needed numbers at their pace.  Demand continues to be an area to watch, and while there have been some bright spots in both global and domestic markets, there are lingering long-term concerns about strength. Barrows and gilts at the National Daily Direct closed $1.48 lower with a base range of $80 to $86 and a weighted average of $85.38 and the Western Corn Belt closed $3.15 lower with a weighted average of $83.71.  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 mostly $1 to $5 lower and feeder pigs were steady to weak.  The trade was moderate to active and there was light to moderate demand for moderate to heavy offerings.  The weighted average for early-weaned pigs was $37.69 and the weighted average for all feeder pigs was $56.05. 

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

Pork values closed lower, down $2.01 at $89.80.  Bellies dropped nearly $10 Friday.  Loins, butts, and picnics were also lower.  Hams and ribs were higher. Estimated hog slaughter was 486,000 head, up 77,000 on the week and up about 16,000 on the year.  Saturday’s estimated kill is 325,000 head, up 319,000 on the week and up 227,000 on the year.