Market News

Cattle futures sharply lower to finish the week

At the Chicago Mercantile Exchange, live and feeder cattle were sharply lower on the lower direct business and drop in the Dow Jones Industrial Average.  April lives closed $3.95 lower at $234.57 and June live cattle closed $3.80 lower at $231.47.  April feeder cattle closed $7.37 lower at $351.62 and May feeder cattle closed $7.45 lower at $348.07. 

Direct cash cattle trade gained momentum throughout the day Friday.  Dressed deals in the North were marked at $380, $3 lower than the prior week’s weighted average basis in Nebraska.  Live deals were reported at $240, $4 below the previous week’s weighted averages. 

At the Lexington Livestock Market in Nebraska, steers 500 to 800 pounds were steady to $20 lower.  Heifers weighing less than 700 pounds were steady to $5 higher.  The USDA says demand was moderate to good from buyers both in-house and online.  Receipts were down on the week and the year.  Feeder supply included 68 percent steers with 79 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 624 to 625 pounds brought $434 to $438 and feeder steers 700 to 722 pounds brought $391 to $405.  Medium and Large 1 feeder heifers 552 pounds brought $454 and feeder heifers 657 to 697 pounds brought $318 to $409. 

In Missouri last week, hay prices remained mostly steady as producers worked to clear out any remaining inventory before the new growing season.  The USDA says supply is moderate to heavy and demand is light to moderate.  Alfalfa, supreme, medium squares brought $250 to $300.  Alfalfa, supreme, small squares, brought $10 to $15.  Alfalfa, premium, medium squares brought $175 to $225.  Alfalfa, good, large rounds, brought $150 to $175.  Mixed grass, premium, medium squares. Brought $150 to $200.  Mixed grass, good/premium, large rounds, brought $100 to $150. 

Boxed beef closed mixed with moderate and light demand for light offerings.  Choice was $.33 higher at $387.22 and Select was $1.66 lower at $378.95.  The Choice/Select spread is $8.27. Estimated cattle slaughter was 88,000 head, down 1,000 on the week and down more than 10,000 on the year.  There is no scheduled cattle slaughter for Saturday, which is a decrease of 3,000 from last week and last year. 

Lean hog futures were mostly higher on technical buying.  However, April lean hogs closed $.05 lower at $95.62 and May lean hogs closed $.32 higher at $100.85. 

Cash hogs closed higher with a moderate negotiated run. Processors got a little more aggressive in their procurement efforts and bid up to finish out the week’s business.  Demand remains a big wild card for the market, especially with the ample supplies of pork available.  While global demand has been relatively strong, there are still long-term concerns that linger.  Pork’s competitive price in the retail space is an opportunity for domestic demand to get a boost. Barrows and gilts at the National Daily Direct closed $1.95 higher with a base range of $88 to $93 and a weighted average of $91.69; the Iowa/Minnesota is $1.03 higher with a weighted average of $91.83; the Western Corn Belt is $2.10 higher with a weighted average of $91.83.  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 $1 lower and feeder pigs were mostly $3 lower.  Trade was active with moderate to good demand for moderate to heavy offerings.  The weighted average for early-weaned pig was $93.23 and the weighted average for all feeder pigs was $123.11. 

Butcher hog prices at the Midwest cash markets were $4 lower at $66 in Dorchester, Wisconsin. 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 offering at $45 to $55.  Boars ranged from $8 to $15 and $5 to $8.

Pork values closed lower, down $.95 at $98.27.  Loins, butts, and hams were sharply lower.  Picnics, bellies, and ribs were up. Estimated hog slaughter was 470,000 head, down 7,000 on the week and down more than 11,500 on the year.  Saturday’s estimated kill is 83,000 head, down 5,000 on the week and down more than 25,000 on the year.