Market News

Cattle futures lower to end the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower, pressured by the weakness in cash business ahead of Friday’s On Feed report.  August live cattle closed $1.85 lower at $209.82 and October live cattle closed $1.87 lower at $207.35.  August feeder cattle closed $1.72 lower at $302.45 and September feeder cattle closed $1.57 lower at $302.22.

There was another light round of direct cash cattle business to finish the day on Friday.  For the week, live deals in the South ranged from $228 to $231, $5 to $7 below the prior week’s weighted averages.  Dressed deals in the North for the week were marked at $376, $4 lower than the previous week’s weighted average basis in Nebraska.

At the Apache Livestock Auction in Oklahoma, feeder steers were mostly steady to $4 higher.  Feeder heifers were steady to $5 lower.  Steer calves and heifer calves were lightly tested with a lower undertone noted.  The USDA says quality was average to attractive.  Receipts were down on the week and the year.  Feeder supply included 55 percent steers and 47 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 768 to 780 pounds brought $316.50 to $324.50 and feeder steers 915 to 927 pounds brought $283 to $298.25. Medium and Large 1 feeder heifers 452 to 498 pounds brought $307.50 to $362.50 and feeder heifers 614 to 638 pounds brought $295 to $327.50.

In Nebraska last week, new crop alfalfa sold steady on a thin test.  Old crop for grinding was $10 lower.  Old crop grass hay and ground and delivered products were steady.  Dehy and sun-cured pellets were steady.  Early reports of the first-cutting alfalfa have the crop off from last year with some estimates nearly 30 percent lower than last year’s yield.  Contributing factors included dry weather, weevil issues, and hail.  In the central part of the state, alfalfa, ground, brought $120 to $130.  Alfalfa, premium, standing, brought $65.  Prairie/Meadowgrass, premium, small squares brought $8.  Prairie/Meadowgrass, good, large rounds, brought $100.  In the East, Alfalfa pellets, 17% dehydrated, brought $330.  Pellets, 17% sun-cured brought $250 to $260.  Alfalfa, premium, large squares, brought $145.  Alfalfa, good, large rounds, brought $115. In the Platte Valley area, Alfalfa, ground, brought $135.  Pellets 17% dehydrated, brought $305.  Alfalfa, good, large rounds, brought $75 to $80.  In the West, Alfalfa, ground, brought $140.

Boxed beef closed mixed with light to moderate demand for fairly light offerings.  Choice was $3.29 lower at $390.50 and Select closed $2.36 higher at $376.95.  The Choice/Select spread is $13.55. Estimated cattle slaughter was 102,000 head – up 2,000 on the week and down more than 16,000 on the year.  Saturday’s estimated kill is 1,000 head – down 1,000 on the week and down more than 17,000 on the year.

Lean hog futures closed higher, supported by stronger pork values during the session.  July lean hogs closed $.60 higher at $112.77 and August lean hogs closed $.45 higher at $112.45.

Cash hogs closed lower with a light negotiated run.  Processors were pretty aggressive in their procurement efforts and moved big numbers throughout the week, many times at much higher prices.  That likely had an impact on Friday’s slower business. Demand for U.S. pork has remained relatively strong, both on the global market and domestically.  Both adding support to prices. Barrows and gilts at the National Daily Direct closed $2.66 lower with a base range of $104 to $115 and a weighted average of $110.46; the Iowa/Minnesota closed $2.15 lower with a weighted average of $111.94; the Western Corn Belt closed $2.52 lower with a weighted average of $111.74; the Eastern Corn Belt had no comparison with a weighted average of $108.27.

Butcher hog prices at the Midwest cash markets were steady at $76.

According to the USDA’s Weekly Feeder Pig Report, early-weaned pigs were steady to $1 higher.  Feeder pigs were mostly $4 higher.  Demand was moderate to good with light to moderate offerings.  The weighted average for all early-weaned pigs was $53.57 and the weighted average for all feeder pigs was $88.15.

Pork values closed sharply higher, up $3.16 at $122.14.  All of the primals were higher and sharply higher. Estimated hog slaughter was 461,000 head – up 26,000 on the week and down nearly 8,000 on the year.  Saturday’s estimated kill is 15,000 head down 5,000 on the week and down more than 30,000 on the year.