Market News

Cattle futures mixed to finish the week

At the Chicago Mercantile Exchange, live cattle were mixed, mostly higher watching direct business.  Feeders were lower on the higher move in corn. October live cattle closed $.37 lower at $177.65 and December lives closed $.10 lower at $178.50. October feeder cattle closed $.62 lower at $239.12 and November feeders closed $.27 lower at $235.20.

There was a light direct cash cattle trade reported on Friday. Dressed business was marked at $288, which is fully steady with the previous week’s weighted average basis in Nebraska. This follows the light trade that took place on Thursday at mostly $181 live in the South, which was also fully steady with the prior week’s business. 

At the Winter Livestock Auction in Kansas, feeder steers 600 to 975 pounds were steady to $4 higher.  However, 7-weight steers sold up to $10 higher.  Feeder heifers 600 to 900 pounds were steady to $4 higher.  Steer and heifer calves under 600 pounds were not well tested.  The USDA says demand was good.  Receipts were down on the week and the year.  Feeder supply included 24% steers and 92% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 662 to 685 pounds brought $245 to $257.50 and feeder steers 777 to 787 pounds brought $235 to $248.75.  Medium and Large 1 feeder heifers 702 to 783 pounds brought $225 to $240.75 and feeder heifers 811 to 843 pounds brought $215.50 to $233.50. 

In Iowa this past week, hay offerings were up from the most recent sale.   Alfalfa, premium, large rounds brought $80.  Medium squares brought $110. Small squares brought $8.50.  Alfalfa/Grass mix, premium, large squares brought $190 delivered and $150 F.O.B.  Medium squares brought $250 to $260.  Alfalfa/Grass mix, large rounds brought $85.  Small squares brought $6.50.  Alfalfa/Grass Mix, good, small squares brought $5.50.  Grome grass, good, large rounds brought $115.  Small squares brought $5.75.  Grass hay, premium, small squares brought $7 per bale. 

Boxed beef closed lower on light demand for solid offerings.  Choice was $2.27 lower at $304.91 and Select closed $1.47 lower at $294.17.  The Choice/Select spread is $10.74. Estimated cattle slaughter was 118,000 head – down 5,000 on the week and down a little more than 3,000 on the year.  Saturday’s estimated kill is 17,000 head – down 26,000 on the year and up 8,000 on the year. 

Lean hog futures ended the day mostly lower, pressured by lower cash and wholesale business during the session. October lean hogs closed $.45 lower at $78.45 and December lean hogs closed $.25 lower at $71.30.

Cash hogs closed mixed with a fairly light negotiated run.  It was a pretty lackluster day of business as processors moved decent-sized runs much of the week and did so at lower prices.  The industry continues to monitor the availability of market-ready hogs and hog weights.  While there has been some price support in the market from the strong global demand for U.S. pork, concerns about long-term domestic demand create some uncertainty. Barrows and gilts at the National Daily Direct were unchanged with a base range of $73 to $77 and a weighted average of $76; the Iowa/Minnesota closed $.54 lower with a weighted average of $76.07; the Western Corn Belt closed $.07 higher with a weighted average of $76.04.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were $3 higher and feeder pigs were steady.  Demand was good for moderate offerings.  The weighted average for early-weaned pigs was $38.64 and the weighted average all feeder pig was $55.08. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $53 to $65.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed weak – down $.28 at $93.90.  Bellies, loins, and butts were lower.  Hams, ribs, and picnics were higher. Estimated hog slaughter was 480,000 head – down 2,000 on the week and up about 3,500 on the year. Saturday’s estimated kill is 155,000 head – down 240,000 on the year and up about 4,000 on the year.