Market News

Live cattle mixed to end the week

At the Chicago Mercantile Exchange, live cattle were mixed, on spread trade.  Feeder cattle were lower on profit taking.  February live cattle closed $1.52 higher at $193.65 and February lives closed at $1.17 higher at $192.02. January feeder cattle closed $0.70 lower at $257.65 and March feeders closed $.90 lower at $257.67. 

Direct cash cattle trade ended the week quietly.  Deals ranged from $302 to $311 dressed, significantly higher than the previous week’s weighted average basis in Nebraska.  Live deals in the South were marked at $190 to $191, steady to $1 higher than the prior week’s weighted averages.

At the Winter Livestock Auction in Kansas, feeder steers 800 to 1000 pounds were $3 to $5 higher. Steers 400 to 800 pounds were $3 to $10 lower, but 5-weight steers were steady.  Feeder heifers 700 to 975 pounds were steady on light receipts.  Heifers 400 to 700 pounds were $5 to $10 lower.  Steer and heifer calves were not nearly as attractive as last week.  The USDA says demand was good on feeders.  Feeder supply included 71% steers and 64% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 528 to 543 pounds brought $330 to $346 and feeder steers 650 to 659 pounds brought $280 to $292.  Medium and Large 1 feeder heifers 553 to 592 pounds brought $263 to $279 and feeder heifers 752 to 779 pounds brought $235 to $242. 

In Nebraska, hay sales were steady.  The USDA says demand was light to moderate with the best demand coming from backgrounding lots.  Some ranchers have started supplementing hay as fall or winter pastures lack appropriate nutrients.  There’s still some year-old hay on the market.  Alfalfa, good/premium, large rounds brought $97.50.  In Central Nebraska, Alfalfa, good, large rounds, brought $80 to $85 and $75.  Alfalfa/grass mix, fair, large rounds, brought $65.  In the East, Alfalfa, pellets 17% dehydrated, brought $290 to $350.  Pellets 17% sun-cured, brought $250.  Alfalfa, premium, small squares brought $8.  Alfalfa, good, medium squares brought $140.  In the Platte Valley, alfalfa, ground, brought $130.  Pellets 17%, dehydrated, brought $300 to $325.  Pellets, 17%, sun-cured, brought $300.  Alfalfa, good, large rounds, brought $85 to $90.  In the West, alfalfa, ground, brought $140.  Alfalfa, supreme, large rounds, brought $190.  Alfalfa, premium, large rounds, brought $170.  Medium squares brought $200.  Alfalfa, good, large rounds, brought $150.

Boxed beef closed higher on solid demand for moderate offerings.  Choice was $1.15 higher at $316.37 and Select closed $3.38 higher at $283.86.  The Choice/Select spread is $32.53. 

Estimated cattle slaughter was 115,000 head – down 2,000 on the week and down more than 5,000 on the year.  Saturday’s estimated kill is 5,000 head – down 7,000 on the week and down about 18,000 on the year.

Lean hog futures ended the day higher, supported by sharply higher pork values during the session. Happy ray lean hogs close $1.12 higher at $85.60 and April lean hogs closed $1.30 higher at $89.75.

Cash hogs closed mixed with a fairly light negotiated run.  It was a pretty lackluster end to the week. Processors were more aggressive in their procurement efforts earlier and likely have needed numbers on hand.  Demand for U.S. on the global market has been strong, despite a sluggish export sales report.  But overall, it’s been helping provide some price support. The industry’s also starting to look ahead to this month’s Quarterly Hogs and Pigs report. Barrows and gilts at the National Daily Direct closed $.09 lower with a base range of $71 to $81 and a weighted average of $78.93; the Iowa/Minnesota closed $.39 higher with a weighted average of $79.55; the Western Corn Belt closed $.28 higher with a weighted average of $79.37.  Prices the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig Report, early-weaned pigs were steady to $1 higher and feeder pigs were steady.  Demand was firm for light to moderate offerings.  The weighted averages for early-weaned pigs was $65.47 and the weighted averages for all feeder pig was $82.66.

Butcher hog prices at the Midwest cash markets are steady at $52. 

Pork values closed sharply higher – up $2.30 at $94.61.  Bellies were sharply higher.  Picnics, butts, loins, and hams were higher.  Ribs were sharply lower. Estimated hog slaughter was 474,000 head – down 6,000 on the week and down a little more than 2,000 on the year.  Saturday’s estimated kill is 163,000 head – down 22,000 on the week and down more than 146,000 on the year.