Market News

Cattle futures supported by week’s sharply higher cash business

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were up following the sharply higher cash business earlier in the week.  December lives closed $.02 lower at $187.97 and February lives closed $.02 higher at $188.62.  January feeders closed $.70 higher at $259.47 and March feeder cattle closed $1.32 higher at $258.62. 

It was a quiet end to the week for direct cash cattle trade following a solid day of business prior to the holiday.  For the week, live deals in the South were at mostly $190, $3 to $4 higher than the previous week’s weighted averages.  Dressed deals in the North were at mostly $295, $5 higher than the prior week’s weighted average basis in Nebraska. 

At the Lolli Brothers Livestock Market on Tuesday, steer calves under 500 pounds sold with a higher undertone on a light test, steers 500 to 550 pounds were $10 to $13 higher with a pot load of 875 pounds steers steady with the previous week.  Six pot loads and three part loads of top quality feeder heifers, 630 to 715 pounds, with good weighing conditions, sold with a sharply higher undertone. Heifers 450 to 550 pounds sold with a firm to higher undertone on a light test.  Receipts were down on the year.  Feeder supply included 72 percent heifers and 83 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 501 to 549 pounds brought $313 to $335 and feeder heifers 875 pounds brought $255.85.  Medium and Large 1 feeder heifers 652 to 670 pounds brought $260.50 to $271.75 and feeder heifers 671 to 685 pounds brought $276.75 to $279.75. 

At the Fort Atkinson Kay Market in Iowa, prices were steady to lower with quality on par with the previous week.  Second crop small squares, brought $330 per ton.  Second crop big squares, brought $130 to $16.  Third crop big squares brought $130, and fourth crop big squares brought $165.  First crop rounds brought $60 to $90.  Second crop rounds brought $40 to $115 and third crop rounds brought $100 to $135.  Grass rounds brought $30 to $90.  Premium hay average $130 to $190, good quality hay average $100 to $130.  Fair quality hay brought $85 to $100, and utility hay brought $70 to $85. 

Boxed beef closed mixed with light to moderate demand for light offerings. Choice was $.74 lower at $310.52 and Select was unchanged at $274.30.  The Choice/Select spread is $36.22. Estimated cattle slaughter was 117,000 head – even on the week and down more than 5,500 on the year.  Saturday’s estimated kill is 39,000 head – up 21,000 on the week and up nearly 20,000 on the year.

Lean hog futures ended the day mixed on spread trade, with cash hogs sharply lower and pork values higher during the session.  December lean hogs closed $.32 lower at $82.07 and February lean hogs closed $1.60 lower at $86.32. 

Cash hogs closed sharply lower with a light negotiated run. Processors likely had procured enough hogs earlier in the week and there wasn’t a need to get aggressive in their buying efforts.  The industry continues to look to demand for market support.  Global demand has held relatively strong. Export sales for the week were down slightly, but still slightly higher than the prior 4-week average.  But domestic demand continues to be inconsistent.  Availability of market-ready hogs continues to be monitored. Barrows and gilts at the National Daily Direct closed $3.67 lower with a base range of $78 to $88 and a weighted average of $83.79 and the Western Corn Belt closed $4.32 lower with a weighted average of $83.39.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality. 

Pork values closed higher – up $1.37 at $90.31.  Bellies, hams, butts, and ribs were sharply higher.  Loins were lower and picnics were sharply lower. Estimated hog slaughter was 438,000 head – down 47,000 on the week and down around 39,000 on the year.  Saturday’s estimated kill is 388,000 head – up 250,000 on the week and up about 105,000 on the year.