Market News

Cattle futures lower to end the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower, pressured by cash and wholesale business. 

A light direct cash cattle trade developed late in the day Friday.  Live deals in the South were marked at $187, $3 below the previous week’s weighted averages.  Live business in Nebraska Friday was at $188.  There was a light-dressed trade reported on Thursday at $294, also $3 below the previous week’s weighted average basis in Nebraska.

At the Herreid Livestock Market in South Dakota, steer calves under 500 pounds sold with a lower undertone on a limited test.  Steers 500 to 600 pounds were steady to $5 higher, steer calves over 600 pounds were not well compared.  Heifer calves under 450 pounds sold with lower undertones on a limited test and heifers over 450 pounds were $4 to $8 higher.  Yearling feeder steers were uneven, 900 to 950 pounds were $3 to $7 lower, steers 950 to 1000 pounds were mostly steady, steers 1000 to 1050 pounds were $5 lower with instances of $10 lower.  Yearling feeder heifers sold with a lower undertone on a limited test.  The USDA says demand was good for the large offering of yearling steers and heifers, some off grass, but most out of yards.  Receipts were down on the week and the year.  Feeder supply included 72% steers and 76% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 513 to 542 pounds brought $290 to $331 and feeder steers 908 to 934 pounds brought $250.75 to $259.25.  Medium and Large 1 feeder heifers 468 to 490 pounds brought $287 to $317 and feeder heifers 808 to 836 pounds brought $235 to $240. 

In South Dakota last week, hay sales were slightly stronger with more hay moving out of state and being stored in barns. There have been significant rains in much of Kansas, into southeast Nebraska and southeast Colorado. Rain and snow fell from portions of eastern Colorado into Wyoming and into the Dakotas too, reversing the trend of very dry conditions. Not all areas were as fortunate, with northeast Colorado, western Nebraska, eastern and southwest South Dakota and northwest North Dakota remaining dry this week.  Alfalfa, premium/supreme, large squares brought $250.  Alfalfa, premium, large squares brought $185.  Alfalfa, premium, small squares brought $8.  Alfalfa, fair, large squares brought $121.  Alfalfa/grass mix, premium, large squares brough t$170.  Grass, premium, medium squares brought $160.  Alfalfa, good/premium, large rounds brought $120.  Large squares brought $175. 

Boxed beef closed lower with light demand for solid offerings.  Choice was $1.53 lower at $309.28 and Select was $.53 lower at $279.19.  The Choice/Select spread is $28.74.  Estimated cattle slaughter was 116,000 head – down 3,000 on the week and up about 3,500 on the year.  Saturday’s estimated kill is 9,000 head – up 3,000 on the week and down more than 3,500 on the year.

Lean hog futures ended the day mixed on spread trade, with the mixed end-of-week fundamentals.

Cash hogs closed sharply lower with a light negotiated run. It was a slow end to the week as processors weren’t working to move big numbers.  The industry continues to monitor the availability of market-ready hogs as it looks to keep up with this higher slaughter pace. Demand for U.S. pork on the global market has been relatively strong recently despite this week’s less than stellar export sales report.  Domestic demand remains inconsistent, adding volatility to the price picture. Barrows and gilts at the National Daily Direct were $3.36 lower with a base range of $74 to $85.50 and a weighted average of $81.64 and the Eastern Corn Belt had no comparison but a weighted average of $79.35.  Prices at the Iowa/Minnesota and the Western Corn Belt were not reported due to confidentiality. 

According to the USDA’s weekly feeder pig report, early-weaned pigs were $2 higher and feeder pigs were steady.  Demand was good for moderate offerings.  The weighted average for all early-weaned pigs was $51.55 and the weighted average for all feeder pigs was $64.37.

Butcher hog prices at the Midwest cash markets are steady at midday at $63. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $51 to $61.  Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed sharply higher – up $4.42 at $102.38.  Bellies jumped more than $19 Friday.  Ribs and hams were also sharply higher.  Picnics and butts were higher.  Loins were lower. Estimated hog slaughter was 485,000 head – up 1,000 on the week and up nearly 33,000 on the year. Saturday’s estimated kill is 168,000 head – down 51,000 on the week and down 23,000 on the year.