Market News

Cattle futures lower to finish the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower, pressured by the week’s direct business.  August live cattle closed $.05 lower at $235.20 and October live cattle closed $1.05 lower at $230.55.  August feeder cattle closed $1.55 lower at $354.60 and September feeder cattle closed $1.97 lower at $351.02. 

There was a light round of direct cash cattle business on Friday.  For the week, live deals in the South were at $248, $7 lower than the previous week’s business.  Dressed deals in the North were at mostly $393, $10 lower than the prior week’s weighted average basis. 

At the Mitchell Livestock Market in South Dakota, steers 950 to 1000 pounds were $8 higher, steers 1000 to 1150 pounds were $4 to $6 lower.  The offering was mostly steers, but there was a lower undertone noted for heifers that were sold.  The USDA says there were a few load lots of steers in the offering, demand was good.  Receipts were down from the most recent sale and on the year.  Feeder supply included 75 percent steers with 98 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 809 to 842 pounds brought $356 to $369.50 and feeder steers 961 to 988 pounds brought $322 to $343.25. Medium and Large 1 feeder heifers 850 pounds brought $329 and feeder heifers 901 to 935 pounds brought $281 to $318.50. 

In Missouri, last week, the weather became more cooperative and there was plenty of hay put up.  There are some questions about quality, but yields have been solid.  Pastures throughout the state are rated 77 percent good to excellent.  Demand is light on moderate supplies, but prices are holding steady.  Alfalfa, supreme, medium squares, brought $250 to $300.  Alfalfa, supreme, small squares, brought $10 to $15.  Alfalfa, premium, medium squares, brought $175 to $225.  Alfalfa, good, large rounds, brought $150 to $175.  Alflafa, good, small squares, brought $6 to $10.  Mixed grass, premium, medium squares, brought $150 to $200.  Mixed grass, good/premium, large rounds, brought $100 to $150. Mixed grass, fair/good, brought $50 to $100. 

Boxed beef was higher and sharply higher with solid demand for moderate offerings.  Choice was $1.87 higher at $382.68 and Select was $4.84 higher at $368.33.  The Choice/Select spread is $14.35. Estimated cattle slaughter was 99,000 head, up 74,000 on the week and down nearly 4,000 on the year. 

Lean hog futures were mixed on spread adjustments. August lean hogs closed $.85 higher at $99.00 and October lean hogs closed $.57 lower at $85.07. 

Cash hogs closed higher with a moderate negotiated run.  The cash hog market continues to look for consistent direction.  Processors were more aggressive in their procurement efforts Friday and bid up to move needed numbers. The market remains largely focused on demand.  While there have been some bright spots when it comes to global demand for US pork, there are concerns about the long-term strength of the market.  Pork remains a competitively priced protein, which could boost domestic demand, especially as we’re in the height of summer grilling season.  Barrows and gilts at the National Daily Direct were $1.25 higher with a base range of $94 to $100 and a weighted average of $98.30; the Iowa/Minnesota closed $1.81 higher with a weighted average of $99.38; the Western Corn Belt closed $1.53 higher with a weighted average of $99.33.  Prices at the Western Corn Belt were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs and feeder pigs were mostly steady.  Trade was moderate, with moderate demand for moderate offerings.  The weighted average for early-weaned pigs was $47.71 and the weighted average for all feeder pigs was $78.97. 

Butcher hog prices at the Midwest cash markets are at $64, $1 higher than earlier this week. At Illinois, slaughter sows were steady with moderate demand for light to moderate offerings at $41 to $52.  Barrows and gilts were steady with moderate demand for moderate offerings at $57 to $67.  Boars ranged from $25 to $30 and $15 to $20. 

Pork values closed sharply higher, up $2.53 at $101.34.  All of the primals were up, with bellies and picnics both sharply higher. 

Estimated hog slaughter was 452,000 head, up 319,000 on the week and up about 27,000 on the year.  Saturday’s estimated kill is 23,000 head, down about 17,000 on the year.