Market News

Cattle futures lower ahead of On Feed numbers

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the USDA’s On Feed numbers, despite sharply higher cash business.  April live cattle closed $1.52 lower at $206.85 and June lives closed $2.25 lower at $202.77.  April feeder cattle closed $3.47 lower at $284.97 and May feeder cattle closed $4.00 lower at $285.10. 

Direct cash cattle trade activity held out until the end of the week, and it was worth it for sellers.  Live deals in the South were at $210, $7 higher than the previous week’s weighted averages.  Dressed business in Nebraska was marked at $335, $10 higher than the prior week’s weighted average basis.  Live deals in the North ranged from $212 to $216, $3 to $6 higher than the prior week’s business. 

At the Lamoni Livestock Auction in Iowa, compared to two weeks ago, steers were mostly $10 to $29 higher, with lighter-weight cattle seeing the biggest jump.  Heifers were $17 to $29 higher.  The USDA says buyers were most interested in lighter cattle ahead of spring.  Demand was good, both in-house and online.  Supply was moderate.  Receipts were down on the week and the year.  Feeder supply included 69 percent steers and 71 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 651 to 683 pounds brought $328.50 to $349 and feeder steers 896 to 897 pounds brought $280.25 to $281.50.  Medium and Large 1 feeder heifers 606 to 622 pounds brought $312.50 to $333.50 and feeder heifers 654 to 698 pounds brought $283 to $307.50.

In Missouri last week, the supply of hay is moderate, and demand is light to moderate.  Hay prices have been mostly steady.  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, fair, large rounds, brought $25 to $50.

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice was $2.61 lower at $325.45 and Select closed $.26 higher at $309.62.  The Choice/Select spread is at $15.83.  Estimated cattle slaughter was 100,000 head – down 1,000 on the week and down about 9,000 on the year.  Saturday’s estimated kill is 20,000 head – up 18,000 on the week and up about 7,000 on the year.

Lean hog futures closed higher, support by the stronger pork values during the session. April lean hogs closed $.57 higher at $86.12 and May lean hogs closed $1.05 higher at $89.65. 

Cash hogs closed lower with a moderate negotiated run.  Processors were able to move needed numbers without having to get aggressive in their procurement efforts, prices reflected that.  Demand for U.S. pork on the global market has been strong, but ongoing trade uncertainties and the threat of tariffs add some pressure to the market.  U.S. export sales for pork have seen consecutive weeks of marketing-year lows.  On the domestic side, pork remains a more competitively priced protein, which could be a bright spot for demand here at home.  The industry also continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct were $.99 lower with a base range of $85 to $90 and a weighted average of $88.40; the Iowa/Minnesota closed $1.39 lower with a weighted average of $88.20; the Western Corn Belt closed $1.29 lower with a weighted average of $88.16; the Eastern Corn Belt closed $.07 higher with a weighted average of $89.28. 

According to the USDA’s Weekly Feeder Pig Report, early-weaned pigs and feeder pigs were $2 per head lower.  Demand was light to moderate for moderate offerings.  The weighted average for all early-weaned pigs was $52.02 and the weighted average for all feeder pigs was $104.53. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for light offering at $57 to $69.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $64.  Boars ranged from $20 to $30 and $15 to $25.

Pork values closed higher – up $1.00 at $96.86.   Loins, ribs, butts, and hams were higher.  Picnics and bellies were lower. Estimated hog slaughter was 472,000 head – down 2,000 on the week and down almost 14,000 on the year. Saturday’s estimated kill is 158,000 head – up 77,000 on the week and up about 67,500 on the year.