Market News

Cattle, hog futures lower to finish the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the USDA’s Cattle on Feed numbers and watching direct business develop.  June live cattle closed $.27 lower at $247.35 and August live cattle closed $.25 lower at $242.82.  May feeder cattle closed $1.82 lower at $365.27 and August feeder cattle closed $2.85 lower at $365.67. 

There was a solid round of direct cash cattle business on Friday.  For the week, live deals in the South were marked at $248, about steady with the previous week’s weighted averages.  Dressed business was at mostly $388, with a few marked at $386, mostly steady to $1 lower than the prior week’s weighted average basis in Nebraska. 

At the Mobridge Livestock Exchange in South Dakota, the USDA says there was good to very good demand for load lots that were featured, especially for light calves suited for grass.  There was moderate to good demand for packages, which were plainer quality.  There were a few consignments of fall calves on offer.  Flesh condition ranged from light to moderate plus.  The market was mostly active from both order buyers and farmer feeders.  Receipts were up on the year.  Feeder supply included 55 percent steers with 77 percent of the offering weighing more than 600 pounds.  Medium and large 1 feeder steers 624 to 646 pounds brought $455 to $476 and feeder steers 713 to 747 pounds brought $404 to $424.50.  Medium and large 1 feeder heifers 602 to 646 pounds brought $404 to $427.50. 

In Missouri this past week, hay prices were steady to week for average quality hay, higher-end hay remains fully steady.  Alfalfa, supreme, medium squares, brought $250 to $300.  Alfalfa, supreme, small squares brought $10 to $15.  Alfalfa, premium, medium squares, brought $175 to $225.  Alfalfa, good, large rounds, brought $150 to $175.  Alfalfa, good, small squares, brought $6 to $10.  Mixed grass, premium, medium squares, brought $150 to $200.  Mixed grass, good/premium, large rounds, brought $100 to $150.  Mixed grass, fair/good, large rounds, brought $50 to $100. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was $.51 lower at $381.06 and Select was $1.88 lower at $376.60.  The Choice/Select spread is $4.46. Estimated cattle slaughter 77,000 head, down 6,000 on the week and down nearly 14,000 on the year.  Saturday’s estimated kill is 8,000 head, up 4,000 on the week and down more than 2,500 on the year. 

Lean hog futures were lower on technical selling.  May lean hogs closed $.65 lower at $93.40 and June lean hogs closed $.62 lower at $101.05. 

Cash hogs closed firm with a very light negotiated run.  The cash hog market continues to struggle with consistency. Supplies of market-ready hogs are ample, so demand remains crucial to the market.  There have some bright spots globally when it comes to demand for US pork, but there are long-term concerns that linger. Domestic demand continues to show some promise, especially as we head into summer grilling season and pork is a competitively priced protein in the retail space. Barrows and gilts at the National Daily Direct closed $.12 higher with a base range of $88 to $91 and a weighted average of $90.28.  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 $3 lower and feeder pigs were mostly $6 lower.  Trade was moderate to active with light to moderate demand on moderate offerings.  The weighted average for early-weaned pigs was $74.56 and the weighted average for all feeder pigs was $120.31.   

Butcher hogs at the Midwest Cash Markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $47 to $58. Barrows and gilts prices were steady with moderate demand for moderate offerings at $45 to $55. Boars ranged from $8 to $15 and $5 to $8.

Pork values closed sharply higher, up $2.52 at $99.20.  Butts, bellies and loins were all sharply higher.  The rest of the primals were up. Estimated hog slaughter was 457,000 head, down 27,000 on the week and up more than 66,000 on the year.  Saturday’s estimated kill is 77,000 head, down 71,000 on the week and up about 40,000 on the year.