Market News

Cattle futures lower to finish the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower on the week’s steady to lower cash business.  October live cattle closed $.97 lower at $235.97 and December live cattle closed $1.10 lower at $237.45.  October feeder cattle closed $1.05 lower at $357.90 and November feeder cattle closed $1.92 lower at $356.10. 

Direct cash cattle trade activity was relatively quiet on Friday.  There were a few cleanup deals reported.  For the week, live deals in the South were at mostly $242, steady with the previous week’s business.  Dressed deals in the North were marked at mostly $383, $1 to $2 below the prior week’s weighted average basis in Nebraska. 

At the Herreid Livestock Market in South Dakota, the best test was on steers 900 to 999 pounds, which were $10 to $12 higher, 1000 to 1049 pounds were $12 to $16 higher.  Heifers were not well compared.  The USDA says demand was very good for the large yearling offering that featured mostly loads and strings of attractive cattle coming off grass.  Flesh condition was mostly light to moderate.  The market was active.  Receipts were up from two weeks ago and on the year.  Feeder supply included 72 percent steers and 99 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 833 to 844 pounds brought $372 to $389.50 and feeder steers 903 to 949 pounds brought $368.75 to $372.75.  Medium and Large 1 feeder heifers 803 to 821 pounds brought $348 to $365.50 and feeder heifers 905 to 946 pounds brought $321 to $339. 

In Missouri, cooler weather has been welcomed, but the lack of precipitation has deteriorated crop conditions.  The USDA says there have been reports of hay feeding and some slight concerns with water for producers in the southern part of the state.  Hay movement has been mostly slow and prices are steady to weak.  Demand is light to moderate for heavy supplies.  Alfalfa, supreme, Medium Squares, brought $250 to $350.  Alfalfa, supreme, small squares, brought $10 to $15.  Alfalfa, premium, medium squares, brought $175 to $225.  Alfalfa, good, large rounds, brought $150 to $175.  Alfalfa, 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, large rounds, brought $75 to $125.  Mixed grass, fair/good, small squares, brought $3 to $7.  Mixed grass, large rounds, brought $20 to $50. 

Boxed beef closed sharply lower with light demand for moderate offerings.  Choice was $3.45 lower at $410.76 and Select was $2.58 lower at $385.19.  The Choice/Select spread was $25.57. Estimated cattle slaughter was 118,000 head, up 17,000 on the week and down more than 7,000 on the year.  Saturday’s estimated kill is 6,000 head, up 4,000 on the week and down more than 35,000 on the year.

Lean hog futures closed higher on demand optimism.  Pork values were also higher during the session.  October lean hogs closed $1.00 higher at $96.02 and December lean hogs closed $1.02 higher at $88.32. 

Cash hogs closed sharply lower with a light negotiated run.  Processors weren’t very aggressive in their procurement efforts, and it was reflected in Friday’s business.  While demand for U.S. pork has been relatively strong overall, this week’s export sales left a lot to be desired.  Sales were down significantly, and China was absent again from the purchasers’ list.  Domestic demand has found some support in pork’s competitive price in the retail space. Barrows and gilts at the National Daily Direct closed $3.18 lower with a base range of $95 to $108.50 and weighted average of $101.25; the Iowa/Minnesota closed $3.56 lower with a weighted average of $101.07; the Western Corn Belt closed $2.23 lower with a weighted average of $102.10; the Eastern Corn Belt closed $5.63 lower with a weighted average of $99.34. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs and feeder pigs were steady.  The USDA says demand was mostly moderate for moderate offerings.  The weighted average for all early-weaned pigs was $56.96 and the weighted average for all feeder pigs was $74.79. 

Butcher hog prices at the Midwest cash markets were steady this week at $80 and $70. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $73 to $85.  Barrows and gilts were steady with moderate demand for moderate offerings at $63 to $73.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed lower, down $1.41 at $113.32.  Picnics were sharply lower.  Bellies, ribs, and loins were also lower.  Butts and hams were higher. Estimated hog slaughter was 476,000 head, up 18,000 on the week and down more than 8,000 on the year.  Saturday’s estimated kill is 382,000 head, up 361,000 on the week, but down about 10,000 on the year.