Market News

Cattle futures move lower to finish the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower on profit-taking and the weak cash business.  

It was another fairly light week of direct cash cattle business.  Live deals were marked at $222 in the South, $3 lower than the previous week’s weighted averages.  Dressed deals in the North were at $345, $10 lower than the prior week’s weighted average basis.  

At the Ft. Pierre Livestock Auction in South Dakota, feeder steers 900 to 1000 pounds were $10 lower, other weights were not well compared.  Feeder heifers sold with higher undertones compared to the most recent sale.  The USDA says demand was good for yearling steers and heifers. Flesh condition ranged from very light to moderate, as the drought continues to be very severe forcing cattle producers to sell earlier than anticipated.  Receipt were up from the most recent sale and on the year.  Feeder supply include 31 percent steers with 100 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 917 to 932 pounds brought $334 to $335.  Medium and Large 1 feeder heifers 958 to 988 pounds brought $291.50 to $322.  

In Nebraska, alfalfa hay in the Eastern side of the state was $10 to $20 higher and alfalfa pellets were $20 higher.  Grass and alfalfa hay in the Central part of the state was steady to $10 higher.  Ground and delivered hay was steady.  Alfalfa hay in the Platte Valley region sold steady to $20 higher.  Ground and delivered hay was $10 per ton higher and Alfalfa pellets were steady.  In the West, all reported forages were steady.  The USDA says demand was good to very good for bales with light demand for pellets.  In the Central part of the state, Alfalfa, ground, brought $240.  In the East, Alfalfa, pellets 17%, dehydrated, brought $390.  Alfalfa, pellets, 17% sun-cured, brought $320.  In the Platte Valley region, Alfalfa, ground, brought $250.  Pellets 17% dehydrated, brought $330 to $340.  In the West, Alfalfa, ground, brought $300.  Alfalfa, pellets 17%, suncured, brought $390.  

Boxed beef closed mixed with light and solid demand for moderate offerings.  Choice was $5.13 lower at $376.23 and Select was $1.89 higher at $361.08.  The Choice/Select spread is $15.15.  Estimated cattle slaughter was 103,000, up 4,000 on the week, and up about 4,000 on the year.  Saturday’s estimated kill is 24,000 head, up 9,000 on the week and up about 22,000 on the year.  

Lean hog futures were higher on oversold signals and the higher midday move in pork.  

Cash hogs closed mixed with a light negotiated run. It’s been another inconsistent week of business for the cash hog market.  Demand continues to be an area for the industry to monitor.  While there are bright spots in both the global and domestic markets, there are ongoing concerns about long-term strength.  Processors continue to have leverage and are moving needed numbers at their pace. The trade is also watching supplies of market-ready hogs and hog weights, which contribute to available pork.  Barrows and gilts at the National Daily Direct closed $.19 lower with a base range of $84.50 to $94 and a weighted average of $89.57; the Iowa/Minnesota is $.12 higher with a weighted average of $89.86; the Western Corn Belt is $.13 higher with a weighted average of $89.84; the Eastern Corn Belt has no comparison but a weighted average of $88.38. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were $3 lower and feeder pigs were mostly $9 lower.  Trade was moderate to active, with light to moderate demand for moderate to heavy offerings.  The weighted average for early-weaned pigs was $44.57 and the weighted average for all feeder pigs was $59.44.  

Butcher hog prices at the Midwest cash markets are $2 lower at $64.  At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $55 to $65.  Boars ranged from $22 to $32 and $10 to $13.  

Pork values were sharply higher, up $2.26 at $96.06.  All of the primals were up, with bellies leading the way.   Estimated hog slaughter was 447,000 head, down 7,000 on the week and down about 13,000 on the year.  Saturday’s estimated kill is 29,000 head, down 10,000 on the week and up about 4,000 on the year.