Market News

Cattle futures up on oversold signals

At the Chicago Mercantile Exchange, live and feeder cattle were up sharply on oversold signals and higher boxed beef during the session. October live cattle closed $3.12 higher at $181.15 and December lives closed $2.87 higher at $179.60.  September feeder cattle closed $4.17 higher at $241.60 and October feeders closed $3.77 higher at $239.77. 

Direct cash cattle trade activity was quiet Friday following back-to-back days of light business.  In the South, live deals were marked at mostly $186, $2 lower than the previous week’s weighted averages.  Dressed business in the North was at mostly $305 to $306, $4 to $5 lower than the prior week’s weighted average basis in Nebraska. 

At the Mobridge Livestock Exchange in South Dakota, no recent price trend wass available.  There was a light yearling offering for the day. There were a few packages that rounded out the rest of the offering.  The USDA says demand was good for loads and moderate for packages with all the cattle coming off grass.  Quality varied, from plain to attractive.  The market was moderate to active.  Receipts were down on the year. Feeder supply included 73% steers and 100% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 857 to 867 pounds brought $245 to $253 and feeder steers 957 to 983 pounds brought $236.50 to $242.  Medium and Large 1 feeder heifers 671 pounds brought $263 to $270 and feeder heifers 804 to 846 pounds brought $236.50 to $242.25. 

In Missouri, hay movement continues to be slow, especially with heavy supplies of grass hay.  Hay prices have been weak to lower on grass hay and mostly steady on alfalfa.  Supplies are moderate to heavy and demand is light.  Alfalfa, supreme, medium squares brought $250 to $300.  Alfalfa, supreme, small squares brought $8 to $12.  Alfalfa, premium, medium squares brought $200 to $250.  Alfalfa, good, large rounds brought $150 to $200.  Alfalfa, good, small squares brought $5 to $10.  Alfalfa, fair, large rounds brought $125 to $150.  Mixed grass, good/premium, large rounds brought $125 to $200.  Mixed grass, fair/good, large rounds brought $80 to $125.  Mixed grass, fair/good, small squares brought $3.50 to $8.  Mixed grass, fair, large rounds brought $20 to $60. 

Boxed beef closed higher on moderate demand for moderate offerings.  Choice was $.59 higher at $312.71 and Select closed $.56 higher at $298.59.  The Choice/Select spread is $14.12.  Estimated cattle slaughter was 104,000 – down 12,000 on the week and up about 4,000 on the year. Saturday’s estimated kill is 3,000 head – even on the week and up almost 1,000 on the year.

Lean hog futures ended the day mixed, mostly higher on spread trade. October lean hogs closed $.35 higher at $73.97 and December lean hogs closed $.42 higher at $66.30. 

Cash hogs closed lower with a light negotiated run. Processors likely had needed numbers on hand and didn’t have any reason to bid up to move larger numbers.  Supplies of market-ready hogs were ample.  Demand for U.S. pork on the global market continues to be a bright spot for the industry, but the long-term concerns surrounding domestic demand linger.  Barrows and gilts at the National Daily Direct closed $1.34 lower with a base range of $82.50 to $86 and a weighted average of $83.53 and the Western Corn Belt closed $2.05 lower with a weighted average of $83.55.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market are steady in Dorchester, Wisconsin at $58 and $11 higher in Garnavillo, Iowa at $69.  Red Oak, Iowa is steady at $56. 

According to the Weekly Feeder Pig Report from the USDA, early-weaned pigs and feeder pigs were $2 per head higher.  Demand was good for moderate offerings.  The weighted average for all early-weaned pigs was $29.78 and the weighted average for all feeder pigs was $48.54. 

Pork values closed higher – up $.43 at $98.66.  Hams and picnics were both sharply higher.  Bellies and ribs were also higher.  Loins and butts were lower. Estimated hog slaughter was 445,000 head – down 31,000 on the week and down about 12,000 on the year.