Market News

Cattle futures mixed to end the week

At the Chicago Mercantile Exchange, live and feeder cattle were mixed head of Friday’s On Feed report, which showed higher placements and an increase in Cattle on Feed.  October live cattle closed $.20 lower at $175.70 and December live cattle closed $.32 lower at $175.20.  September feeder cattle closed $.37 higher at $238.57 and October feeders closed $.12 higher at $234.37. 

Direct cash cattle trade activity was sporadic throughout the week.  Deals in the South were marked at $183, $2 below the previous week’s weighted averages.  Northern dressed business had a wide range of $290 to $295, mostly $293, $5 below the prior week’s weighted averages. 

At the Herreid Livestock Market in South Dakota, feeder steers were $2 to $5 lower, except 850-to-900-pound steers, which were steady.  The USDA says demand was good for the nice offering of long strings of yearling steers and heifers.  Cattle were primarily offered in load lots and multiple load lots and a few packages and part loads.  Flesh ranged from light to moderate plus, quality was attractive.  The market was active with a lot of buying power in house.  Receipts were up on the week, but down on the year. Feeder supply included 82% steers and 98% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 854 to 877 pounds brought $240 to $251 and feeder steers 959 to 982 pounds brought $236.75 to $239.75.  Medium and Large 1 feeder heifers 845 pounds brought $230.50 and feeder heifers 920 to 940 pounds brought $222.75 to $226. 

In Nebraska this past week, grass hay was $10 lower on a thin test.  Bales of alfalfa in the west were steady.  Dehydrated and sun-cured alfalfa pellets were steady.  The USDA says overall demand for hay remains very light.  There’s been some scattered rain showers across the state, but some dryness is showing up on the drought-monitory.  But demand for hay has not picked up in those areas.  In the Central, alfalfa, large rounds, fair/good, brought $70.  Prairie/Meadowgrass, premium, small squares brought $8.  Prairie/Meadowgrass, good/premium, large rounds brought $80.  In the East, alfalfa, good, large rounds brought $100.  Alfalfa, fair, large rounds brought $100.  Alfalfa, pellets 17% dehydrated brought $280 to $360.  Pellets 17%, sun-cured brought $270 to $320.  In the Platte Valley area, alfalfa, ground brought $135.  Pellets, 17% dehydrated, brought $325.  In the West, alfalfa, supreme, large squares brought $170.  Alfalfa, good, large squares brought $135.  Alfalfa, ground, brought $150. 

Boxed beef closed mixed on light and solid demand for moderate offerings.  Choice was $1.35 higher at $317.34 and Select closed $1.57 lower at $300.46.  The Choice/Select spread is $16.88.   Estimated cattle slaughter was 113,000 head – down 5,000 on the week and down more than 8,000 on the year.  Saturday’s estimated kill is 11,000 head – up 3,000 on the week and down nearly 4,000 on the year.

Lean hog futures ended the day mostly higher ahead of cold storage numbers and stronger pork values. October lean hogs closed $.92 higher at $80.55 and December lean hogs closed $.47 higher at $70.75. 

Cash hogs closed lower with a fairly light negotiated run.  Processors moved needed numbers Friday without getting aggressive in their procurement efforts and bidding up.  The industry continues to monitor the availability of market-ready hogs and hog weights as it watches the balance of supply and demand.  Demand overall for U.S. pork on the global market has been solid, helping provide some price support.  Domestic demand continues to struggle, and consistency is needed there. Barrows and gilts at the National Daily Direct were down $2.60 with a base range of $72 to $82 and a weighted average of $80.76; the Iowa/Minnesota had no comparison but a weighted average of $81.25; the Western Corn Belt had no comparison but a weighted average of $81.19; the Eastern Corn Belt has a weighted average of $79.79. 

According to the USDA’s Weekly Feeder Pig Report, early-weaned pigs were $2 higher and feeder pigs were $3 higher.  Demand was steady for moderate offerings.  The weighted average for all early-weaned pigs was $31.71 and the weighted average for all feeder pigs was $50.87. 

Butcher hog prices at the Midwest cash markets are steady at $66 in Dorchester, Wisconsin and Garnavillo, Iowa and at $55 in Red Oak, Iowa. At Illinois, slaughter sow prices were steady with moderate demand for light to moderate offerings at $53 to $65.  Barrows and gilts were steady with moderate demand for moderate offerings at $47 to $57.  Boars ranged from $18 to $28 and $8 to $15.

Pork values closed higher – up $2.62 at $99.05.  Hams and bellies were sharply higher.  Butts, picnics, and loins were higher.  Ribs were lower. Estimated hog slaughter was 479,000 head – up 15,000 on the week and up about 14,000 on the year.  Saturday’s estimated kill is 96,000 head – down 27,000 on the week and down more than 59,000 on the year.