Market News

Cattle, hog futures lower to end the week

At the Chicago Mercantile Exchange, live and feeder cattle were pressured by weakness in the cash markets and fund liquidation. August live cattle closed $.70 lower at $184.10 and October live cattle closed $1.65 lower at $182.07.  August feeder closed $3.50 lower at $249.65 and September feeders closed $3.65 lower at $248.15.

There was a light direct cash cattle trade that took place throughout the week.   Southern live deals were marked at mostly $188, $2 below the previous week’s weighted averages.  Northern dressed business was at mostly $310, also $2 lower than the prior week’s weighted averages basis in Nebraska. 

At the Herreid Livestock Market in South Dakota, the USDA says there was good to very good demand for the large yearling offering.  The majority of the offering were black steers off grass that were sold in strings and loads.  Quality and flesh were both attractive, with most of the grass cattle in light to moderate flesh.  There were a few loads of cattle out of lots, with some heavy flesh.  The market was active.  Receipts were up from the most recent sale and on the year.  Feeder supply included 99% steers and the entire offering was over 600 pounds.  Medium and Large 1 feeder steers 905 to 949 pounds brought $244.25 to $254.25 and feeder steers 951 to 989 pounds brought $236.25 to $244.50.  Medium and Large 1 feeder heifers 1080 pounds brought $204.50.  

In Missouri, there is a lot of hay for sale as grass growth has been tremendous this year.  Most of the state remains drought free and the ample moisture has several producers still out baling hay.  Second cuttings prior to Fall are unusual.  The market is saturated with hay, but movement is slow as demand has been light.  Prices are weak.  Alfalfa, Supreme, medium squares brought $250 to 4300.  Alfalfa, Supreme, small squares brought $8 to $12.  Alfalfa, premium, medium squares brought $200 to $250.  Alfalfa, good, large rounds brought $150 to $200.  Mixed grass, good/premium, brought $150 to $200.  Mixed grass, fair/good, large rounds brought $100 to $150. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice was $.98 higher at $313.77 and Select closed $.29 lower at $297.19.  The Choice/Select spread is $16.60. Estimated cattle slaughter was 116,000 head – up 6,000 on the week and up nearly 1,000 on the year.  Saturday’s estimated kill is 3,000 head – down 7,000 on the week and down a little more than 4,000 on the year.

Lean hog futures ended the day lower, pressured by the steady to lower cash business during the session and long-term demand uncertainty.  August lean hogs closed $.95 lower at $92.20 and October lean hogs closed $.45 lower at $76.57. 

Cash hogs closed lower with very few negotiated purchases.  The was some pretty impressive business that took place in the first half of the week as processors were more aggressive in their procurement efforts and bid up to move needed numbers.  Friday’s sluggishness wasn’t a surprise.  Demand for U.S. pork on the global market remains strong, that’s helping provide some price support.  Hog weights have declined over the summer months, but are still running well above year-ago levels and with ample supplies of market-ready hogs there will be plenty of pork available.  Barrows and gilts at the National Daily Direct closed $1.16 lower with a base range of $84 to $85 and a weighted average of $84.07.  Prices at the Regional Direct markets were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were steady and feeder pigs were $2 per head higher.  Demand was good for moderate offerings.  The weighted average for all early-weaned pigs was $37.91 and the weighted average for all feeder pigs was $46.41. 

At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $49 to $59.  Boars ranged from $18 to $28 and $8 to $15.

Pork values closed lower – down $1.55 at $104.31. The primals were lower across the board. Estimated hog slaughter was 476,000 head – up 38,000 on the week and up about 58,000 on the year.  Saturday’s estimated kill was 63,000 head – down 47,000 on the week and up more than 29,000 on the year.