Market News

Cattle, hog futures end the week lower

At the Chicago Mercantile Exchange, live and feeder cattle closed lower, pressured by direct cash business.  October live cattle closed $2.45 lower at $178.30 and December live cattle closed $2.50 lower at $178.12.  September feeders closed $4.17 lower at $239.50 and October feeders closed $4.95 lower at $235.95. 

Direct cash cattle trade took all week to develop.  Live deals in the South were marked at $185, $1 to $2 below the previous week’s weighted averages.  Live deals in the North were at $190, $2 to $3 below the prior week’s weighted averages.  Dressed business for the week was at $298, $6 below the previous week’s weighted average basis in Nebraska. 

At the Herreid Livestock Market in South Dakota, the best test was on steers was 950 to 999 pounds they were mostly steady.  Steers 900 to 949 pounds and 1000 to 1049 pounds were steady to $3 lower on a narrow comparison.  The USDA says demand was good for another light yearling offering.  Quality was similar to last week and flesh varied more this week, as the cattle came from a couple of different consignors.  There were a few more cattle in moderate plus flesh.  The market was active.  Receipts were down on the week and the year.  Feeder supply included 96% steers and 100% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 935 to 947 pounds brought $241 to $243.75 and feeder steers 951 to 989 pounds brought $238.75 to $243.75.  Medium and Large 1 feeder heifers 958 pounds brought $236. 

In South Dakota, hay movement has been a lot slower than normal and so has demand.  More than 60 percent of the state has normal soil moisture.  Pasture and range conditions are rated 53 percent good to excellent.  Alfalfa, fair, large squares brought $105.  Grass hay, fair, large rounds brought $100. 

In Nebraska, baled hay sales and ground and delivered hay sold steady on  a thin test.  Dehydrated pellets were $25 lower.  Demand is light as supplies are ample.  There are many factors contributing to the slow hay formula – decent rains, lower cattle inventories, and quality pasture conditions. Prairie/Meadowgrass, premium, large rounds, brought $90 to $100.  Prairie/Meadowgrass, premium, small squares brought $8.  In the East, alfalfa, pellets, 17% dehydrated, brought $280.  Pellets, 17% sun-cured brought $270.  In the Platte Valley area, ground alfalfa brough $135 and pellets, 17% dehydrated, brought $325.  In the West, Alfalfa, premium, large squares brought $165.  Alfalfa, good, large squares brought $120 to $130. 

Boxed beef closed higher on good demand for solid offerings.  Choice was $.51 higher at $317.45 and Select closed $.56 higher at $302.59.  The Choice/Select spread is $14.86.   Estimated cattle slaughter was 118,000 head – up 14,000 on the week and about even on the year.  Saturday’s estimated kill is 8,000 head – up 5,000 on the week and about 1,000 on the year. 

Lean hog futures ended the day lower on profit-taking, with additional pressure from cash and wholesale business.  October lean hogs closed $1.42 lower at $75.07 and December lean hogs closed $1.00 lower at 67.22. 

Cash hogs closed lower with a light negotiated run.  The cash hog market had a solid week of business.  Friday’s pullback was no surprise as processors had needed numbers on hand and had no reason to bid up to move more hogs.  Overall, demand for U.S. pork on the global market has been strong and that’s helping provide some price support.  Domestic demand remains the wild card and where the most uncertainty lies.  The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $2.31 lower with a base range of $80 to $84.75 and a weighted average of $83; the Iowa/Minnesota closed $3.01 lower with a weighted average of $83.05; the Western Corn Belt closed $2.75 lower with a weighted average of $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 and feeder pigs were steady.  Demand was steady for moderate offerings.  The weighted average for all early-weaned pigs was $30.49 and the weighted average for all feeder pigs was $47.66. 

Butcher hog prices at the Midwest cash markets are steady at $69. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $51 to $63.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed lower – down $1.20 at $98.67. Butts, hams, bellies, and loins were all lower, while ribs and picnics were higher. Estimated hog slaughter was 464,000 head – up 21,000 on the week and down about 10,000 on the year.  Saturday’s estimated kill is 123,000 head – up 28,000 on the week and up about 58,000 on the year.