Market News

Cattle futures mostly higher to end the week

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were up supported by another really strong week of cash business.  August live cattle closed $2.05 higher at $218.87, and October live cattle closed $1.55 higher at $215.52.  August feeder cattle closed $.82 higher at $309.12 and September feeder cattle closed $.82 higher at $309.12. 

There were multiple light rounds of direct cash cattle trade throughout the week.  Deals in the South ranged from $225 to $232 live, $3 to $10 higher than the previous week’s weighted averages.  Dressed deals in the North were at mostly $380, $13 higher than the prior week’s weighted average basis in Nebraska. 

At the Apache Livestock Auction in Oklahoma, feeder steers and feeder heifers were steady to $5 higher.  Steer and heifer calves were $5 to $10 higher.  The USDA says quality was fair to attractive with good demand.  Receipts were up on the week and the year.  Feeder supply included 40 percent steers and 45 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 604 to 641 pounds brought $336 to $356.50 and feeder steers 715 to 736 pounds brought $303 to $340.  Medium and Large 1 feeder heifers 651 to 680 pounds brought $298.50 to $322 and feeder heifers 755 to 795 pounds brought $270 to $290. 

In South Dakota, there were just a few hay sales reported.  The USDA says demand was moderate for old-crop hay and good for straw and corn stalks to bed confinement barns.  The first cutting of alfalfa has been difficult to put up because of rains and cooler weather.  Large rounds brought $140.  Round corn stalks brought $50 and large square oat straw bales brought $60. 

In Iowa, Alfalfa, supreme, medium squares brought $240.  Alfalfa, premium/supreme, medium squares brought $175.  Alfalfa/grass mix, premium/supreme, medium squares brought $110.  Alfalfa/grass mix, premium, large rounds brought $110 and small squares brought $9.    Alfalfa/grass mix, premium, small squares brought $8.50.  Alfalfa/grass mix, good, small squares brought $6.  Mixed grass, premium, small squares, brought $234. 

Boxed beef closed mixed with light to moderate demand for fairly light offerings.  Choice was $1.77 lower at $365.08 and Select was $.12 higher at $356.73.  The Choice/Select spread was $8.35.  Estimated cattle slaughter was 103,000 head, down 14,000 on the week and down nearly 16,000 on the year.  Saturday’s estimated kill is 2,000 head, down 3,000 on the week and down more than 4,000 on the year.   

Lean hog futures closed higher supported by stronger cash and wholesale business during the session.  July lean hogs closed $2.30 higher at $107.10 and August lean hogs closed $2.35 higher at $109.40. 

Cash hogs closed mixed with a light negotiated run.  It was an up-and-down week for the cash hog market.  Processors worked to navigate pork demand and available supplies of market-ready hogs.  Global demand for U.S. pork has been relatively strong, helping provide price support.  But, China is the wild card, especially as the industry waits for any news about trade talks.  There is optimism the return of summer grilling season will provide a boost to domestic demand. Barrows and gilts at the National Daily Direct were $1.30 lower with a base range of $90 to $105 and a weighted average of $100.55; the Iowa/Minnesota closed $.28 higher with a weighted average of $102.83; the Western Corn Belt closed $.21 lower with a weighted average of $102.50; the Eastern Corn Belt had no comparison but a weighted average of $99.31. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were mostly $1 to $2 higher and feeder pigs were steady to firm.  Demand was moderate to good with moderate offerings.  The weighted average for early-weaned pigs was $51.16 and the weighted average for all feeder pigs was $80.21. 

Butcher hog prices at the Midwest cash markets are $3 higher at $72. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $49 to $61.  Barrows and gilts were steady with moderate demand for moderate offerings at $57 to $67.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed sharply higher, up $3.39 at $111.51.  All of the primals were higher to sharply higher, with hams up $8 on Friday. Estimated hog slaughter was 444,000 head – down 25,000 on the week and down about 24,000 on the year.  Saturday’s estimated kill is 16,000 head – down 224,000 on the week and down nearly 25,000 on the year.