Market News

Cattle futures mostly higher to end the week

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were higher, supported by the week’s direct business and the higher midday move in boxed beef. February live cattle closed $.15 lower at $186.17 and April lives closed $.25 lower at $188.30.  January feeder cattle closed $.90 higher at $255.82 and March feeders closed $1.07 higher at $254.67. 

The bulk of the week’s direct cash cattle trade took place on Thursday and Friday.  Live deals in the South were marked at $191, $1 to $2 higher than the previous week’s weighted averages.  Dressed deals in the North were at mostly $297, $2 higher than the prior week’s weighted average basis in Nebraska. 

At the Ogallala Livestock Auction in Nebraska, steers and heifers less than 650 pounds were sharply higher.  Fly-weight steers set a record at more than $5. The USDA says demand was very good on a nice selection of bawling and weaned calves.  The market was active on the calves with plenty of buyers in house.  Receipts were up from two weeks ago and on the year.  Feeder supply included 74% steers and 51% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 612 to 642 pounds brought $300.50 to $315.50 and feeder steers 652 to 675 pounds brought $290 to $305.50.  Medium and Large 1 feeder heifers 517 to 531 pounds brought $318.50 to $334 and feeder heifers 616 to 645 pounds brought $263.50 to $289. 

In Nebraska last week, all reported forages were steady to week.  According to the USDA, Demand was good in the western part of the state with light demand in other areas.  Some producers are holding on to hay as there are concerns about drought conditions. In Central Nebraska, alfalfa, good, large rounds brought $70 to $85.  Alfalfa, fair, large rounds brought $65.  Prairie/meadowgrass, premium, large rounds brought $90.  Prairie/meadowgrass, premium, small squares brought 48.  In the East, alfalfa, pellets, 17% dehydrated, brought $290 to $350.  Pellets, 17% sun-cured, brought $250.  Alfalfa, premium, small squares, brought $8.  Alfalfa, good, medium squares, brought $140.  Grass, good/premium, large rounds, brought $90.  Alfalfa, ground, brought $130.  Pellets, 17% dehydrated, brought $300 to $325.  Pellets, 17% sun-cured, brought $300.  Alfalfa, good, large rounds, brought $85 to $90.  In the West, alfalfa, ground, brought $140.  Alfalfa, supreme, large rounds, brought $190.  Alfalfa, premium, large rounds, brought $170.  Large squares brought $170.  Medium squares brought $200.  Alfalfa, good, large rounds brought $150.  Large squares, brought $140. 

Boxed beef closed mixed with very good demand on Choice and weak demand on Select with solid offerings.  Choice was $4.20 higher at $312.04 and Select closed $.37 lower at $276.73.  The Choice/Select spread is $35.31. Estimated cattle slaughter was 117,000 head – even on the week and down nearly 5,000 on the year.  Saturday’s estimated kill is 12,000 head – down 35,000 on the week and about even on the year.

Lean hog futures ended the day higher, with pork values sharply higher during the session. February lean hogs closed $.97 higher at $87.32 and April lean hogs closed $.70 higher at $91.85. 

Cash hogs closed sharply lower with just a handful of negotiated purchases. Processors were more aggressive in their procurement efforts earlier in the week, and moved decent numbers to keep up with slaughter pace.  Demand for U.S. pork on the global market remains strong, and that’s helping provide price support.  But there are lingering concerns about the inconsistency in domestic demand.  The industry continues to monitor the availability of market-ready hogs and hog weights, which are running below year-ago levels. Barrows and gilts at the National Daily Direct closed $5.21 lower with a base range of $75 to $85 and a weighted average of $80.13.  Prices at the Regional Direct markets were not reported due to confidentiality.

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were $4 per head higher and feeder pigs were $5 per head higher.  Demand was good for moderate offerings.  The weighted average for all early-weaned pigs was $63.57 and the weighted average for all feeder pigs was $83.28.

Butcher hog prices at the Midwest cash markets are steady at $52. 

Pork values closed sharply higher – up $2.52 at $91.16.  All of the primals except ribs were sharply higher and higher.  Ribs were sharply lower. Estimated hog slaughter was 480,000 head – up 47,000 on the week and up about 3,000 on the year.  Saturday’s estimated kill is 185,000 head down 198,000 on the week and down 65,000 on the year.