Market News

Cattle futures sharply lower to finish the week

At the Chicago Mercantile Exchange, live and feeder were down sharply on technical liquidation, watching direct business develop.  February live cattle closed $3.90 lower at $232.15 and April live cattle closed $4.45 lower at $233.97.  March feeder cattle closed $8.10 lower at $356.45 and April feeder cattle closed $8.02 lower at $354.90. 

There was a light direct cash cattle trade that took place on Friday.  For the week, live deals in the South were at $233, roughly steady to $1 higher than the previous week’s weighted averages.  Dressed deals in the North were marked at $365, fully steady with the prior week’s weighted average basis in Nebraska.

At the Mitchell Livestock Auction in South Dakota, feeder steers up to 650 pounds had a higher undertone, steers 650 to 950 pounds were $1 to $5 higher, steers weighing more than 950 pounds sold with a higher undertone.  Heifers weighing up than 700 pounds sold on a higher undertone, heifers 700 to 850 pounds were $1 to $6 lower, heifers 850 pounds and up sold with a higher undertone.  The USDA says demand was good.  Receipts were down on the week and the year.  Feeder supply included 56 percent steers with 89 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 601 to 647 pounds brought $421 to $451 and feeder steers 802 to 840 pounds brought $352 to $365.  Medium and Large 1 feeder heifers 652 to 695 pounds brought $366 to $394 and feeder heifers 811 to 848 pounds brought $324 to $338.50. 

In Nebraska, all hay sales were steady.  The USDA says demand was mostly light with spots of moderate demand in parts of the state.  Alfalfa, ground, brought $130.  Alfalfa, good, large rounds, brough $80 to $100.  Prairie/Meadowgrass, premium, large rounds, brought $90 to $100.  Prairie/Meadowgrass, good/premium, small squares, brought $8.  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 $300 to $310.  Pellets, 17% suncured, brought $290.  In the west, alfalfa, ground, brought $150.  Alfalfa, premium, large squares, brought $180.  Alfalfa, good, large squares, brought $135 to $140. 

Boxed beef was higher with solid demand for fairly light offerings.  Choice was $1.61 higher at $362.38 and Select was $.48 higher at $360.19.  The Choice/Select spread was $2.19.   Estimated cattle slaughter was 92,000 head, up 6,000 on the week and down more than 22,000 on the year.  Saturday’s estimated kill is 1,000 head, down 1,000 on the week and down about 1,000 on the year. 

Lean hog futures finished the day modestly higher, with pork values firm during the session.  February lean hogs closed $.47 higher at $88.27 and April lean hogs closed $.20 higher at $95.20. 

Cash hogs had no comparison with a very light negotiated run. The cash hog market has been sluggish in the new year.  Supplies of market-ready hogs are ample, and hog weights continue to rise.  Processors have leverage and aren’t forced to be too aggressive in their procurement efforts and haven’t been moving large, negotiated numbers.  The industry continues to monitor the overall demand picture.  Export sales this week were solid.  But there are long-term uncertainties about demand that linger. Barrows and gilts at the National Daily Direct had a base range of $68 to $80 and a weighted average of $74.78; the Iowa/Minnesota and the Western Corn Belt had a weighted average of $75.50.  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 $8 higher and feeder pigs were $4 higher.  Demand was moderate to good for light to moderate offerings.  The weighted average for all early-weaned pigs was $82.03 and the weighted average for all feeder pigs was $108.29. 

Butcher hog prices at the Midwest cash markets were steady at $50. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $38 to $50.  Barrows and gilts were steady with moderate demand for moderate offerings at $40 to $48.  Boars ranged from $8 to $15 and $5 to $8. 

Pork values closed $.03 higher at $93.63.  Bellies, loins, and butts were up.  Ribs, picnics, and hams were down. Estimated hog slaughter was 479,000 head, down 5,000 on the week and down more than 9,000 on the year.  Saturday’s estimated kill is 171,000 head, down 62,000 on the week and down more than 35,000 on the year.