Market News

Cattle futures mostly lower to finish the week

At the Chicago Mercantile Exchange, live cattle were lower, feeders were mostly lower watching for any additional direct business.  April live cattle closed $.35 lower at $239.90 and June live cattle closed $.42 lower at $228.95.  April feeder cattle closed $.10 higher at $343.10 and May feeder cattle closed $.75 lower at $339.17. 

Direct cash cattle trade activity was quiet Friday following back-to-back days of light business.  For the week, Northern dressed deals were at mostly $372, $8 lower than the prior week’s weighted average basis in Nebraska.  Dressed business was at mostly $235, down $4 for the week in Texas and $5 lower in Kansas.  There were a handful of live deals noted at $236 in some areas.

At the Valentine Livestock Auction in Nebraska, no accurate trend was available for steers or heifers.  The USDA says demand was good with several buyers both in-house and online.  Receipts were down on the year.  Feeder supply included 61 percent steers with 57 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 653 to 699 pounds brought $420 to $454 and feeder steers 713 to 733 pounds brought $380 to $414.50. Medium and Large 1 feeder heifers 652 to 678 pounds brought $376 to $438 and heifers 754 to 782 pounds, marked for replacements brought $361 to $381. 

In Nebraska last week, big round bales of alfalfa were mostly steady with instances of $20 higher on loads of hay leaving the state.  Grass hay was fully steady, ground and delivered hay was steady.  The USDA says demand was moderate.  The state is dry and that could spur some additional interest in the market.  Alfalfa, ground, brought $125 to $130.  Alfalfa, good/premium, large rounds, brought $105, FOB-Feedlot.  Alfalfa good, large rounds, brought $80 to $85.  In the East, Alfalfa, pellets, 17% dehydrated, brought $330.  Pellets 17%, suncured, brought $240.  In the Platte Valley area, alfalfa, ground, brought $130.  Pellets 17%, dehydrated, brought $280 to $310.  Pellets, 17%, suncured, brought $290.  In the West, alfalfa, ground, brought $150. 

Boxed beef closed higher with solid demand for light offerings.  Choice was $.83 higher at $397.92 and Select was $.72 higher at $391.54.  The Choice/Select spread was $6.38. Estimated cattle slaughter was 86,000 head, down 2,000 on the week and down more than 12,000 on the year.  Saturday’s estimated kill is 17,000 head, up 17,000 on the week and up about 13,000 on the year. 

Lean hog futures were pressured by technical selling. April lean hogs closed $.90 lower at $93.45 and May lean hogs closed $.75 lower at $98.40. 

Cash hogs closed mixed with a fairly light negotiated run.  Processors had decent runs early in the week and likely had needed numbers on hand.  Demand remains a big question for the market, both globally and here at home.  The domestic market continues to look for a boost from pork’s competitive price in the retail space.  The industry also is monitoring the availability of market-ready hogs and hog weights, which are running more than 1.5 pounds above year-ago levels. Barrows and gilts at the National Daily Direct were $.43 higher with a base range of $86 to $93 and a weighted average of $91.82; the Iowa/Minnesota had no comparison but a weighted average of $91.19; the Western Corn Belt closed $.02 lower with a weighted average of $92.09.  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 mostly $12 lower and feeder pigs were mostly $3 higher.  Trade was moderate with light to moderate demand for mostly moderate offerings for early-weaned pigs, while feeder pigs saw moderate demand for light to moderate offerings. The weighted average for all early-weaned pigs was $87.01 and the weighted average for all feeder pigs was $126.06.

Butcher hog prices at the Midwest cash markets are steady at $64. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $60 to $72.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $8 to $15 and $5 to $8.

Pork values closed weak, down $.10 at $100.19. Butts and loins were sharply lower.  Hams and picnics were down.  Bellies were sharply higher and ribs were up. Estimated hog slaughter was 490,000 head, up 29,000 on the week and up about 17,000 on the year.  Saturday’s estimated kill is 74,000 head, down 9,000 on the week and down more than 8,000 on the year.