Market News

Cattle futures supported by drop in corn

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher with feeders leading the way on the drop in corn.  August live cattle closed $2.67 higher at $177.17 and October lives closed $1.87 higher at $179.55.  August feeders closed $5.20 higher at $247.57 and September feeders closed $5.02 higher at $250.82.

There was another light round of direct cash cattle business on Friday.   For the week live deals in the South were at mostly $178 to $179, $1 to $2 below the previous week’s weighted averages.  In the North, live business was at mostly $182, $1 to $2 lower than the prior week’s weighted averages and dressed business was at mostly $288 to $290, steady to $2 lower than the prior week’s weighted averages.   

In Oklahoma, for the week, feeder steers and heifers were $5 to $10 higher.  The USDA says demand was very good for feeder cattle.  Steer and heifer calves were mostly steady, except 400-to-500-pound steers which were $5 to $15 higher.  Demand for calves was moderate with an uptick in the supply of un-weaned calves.  Medium and Large 1 feeder steers 600 to 647 pounds brought $211 to $267 for an average price of $249.31 and feeder steers 700 to 749 pounds brought $204 to $248 for an average price of $240.85.  Medium and Large 1 feeder heifers 600 to 649 pounds brought $204 to $247 for an average price of $229.65 and feeder heifers 700 to 749 pounds brought $176 to $231 for an average price of $221.09. 

In South Dakota, alfalfa hay is steady.  The USDA says demand is good for alfalfa, very good for grass hay as tonnage in East River is lighter than normal due to the hot/dry June.  A second cutting of hay has been delayed in the areas that were getting rain last week, and tonnage is lighter.  The Black Hills region continues to receive the most rain – making it very difficult for growers to put up hay.  Alfalfa, supreme, large squares brought $300.  Alfalfa, premium, large squares brought $250.  Alfalfa/grass mix, good, large rounds brought $210.  Grass, good, large rounds brought $200.  Wheat straw, large squares, brought $160. 

Boxed beef closed lower on light demand for moderate offerings.  Choice was $.33 lower at $327.72 and Select closed $3.55 lower at $293.63.  The Choice/Select spread is $34.09. Estimated cattle slaughter was 123,000 head – up 3,000 on the week and up 1,000 on the year.  Saturday’s estimated kill is 19,000 head – down 7,000 on the week and up 2,000 on the year. 

Lean hog futures were mixed, adjusting spreads.  July lean hogs closed $.20 higher at $95.65 and August lean hogs closed $.27 higher at $92.60. 

Cash hogs closed mixed with a light negotiated run.  The cash hog market was lackluster and best for the week.  Processors moved needed numbers without having to get aggressive in their procurement efforts.  Demand for US pork on the global market has been relatively strong – and that is expected to continue.  The industry is also monitoring the availability of market-ready hogs.  And there’s still the unknown impact of Prop 12 in California on demand. Barrows and gilts at the National Daily Direct closed $3.04 lower with a base range of $85 to $94 and a weighted average of $90.96; the Iowa/Minnesota and the Western Corn Belt had no comparison but weighted averages of $92.52; the Eastern Corn Belt closed $3.36 higher with a weighted average of $90.25.

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were steady to weak and all feeder pigs were $1 to $2 per head lower.  Demand was moderate for moderate to heavy offerings.  Receipts were down on the week and up on the year.  The Total Composite Cash range for early-weaned pigs as $4 to $17 for a weighted average of $11.43.  The Total Composite formula range was $11.92 to $50.25 for a weighted average of $31.36.  The weighted average for all early-weaned pigs was $16.61 and the weighted average for all feeder pigs was $35.83. 

At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $25 to $35.  Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed lower, down $.45 at $102.45. Bellies were sharply lower.  Ribs and butts were lower.  Loins and hams were higher. Estimated hog slaughter was 447,000 head – down 5,000 on the week and up 13,000 on the year.  Saturday’s estimated kill is 73,000 head – up 6,000 on the week and up 62,000 on the year.