Market News

Cattle, hog futures down on cash, wholesale pressure

Chicago Mercantile Exchange live cattle futures were lower on cash and wholesale pressure, in addition to profit taking. Boxed beef was down at midday and the week’s direct cash business was generally $2 to $3 lower. There are a lot of uncertainties about how Japan’s higher tariff on beef imports will impact U.S. sales. Part of the losses for live and feeder cattle were also end of the month liquidation. August was down $1.40 at $112.90 and October was $1.15 lower at $112.42.

Feeder cattle futures were lower on profit taking, the lower cash and wholesale business, and the firm corn. August was $1.77 lower at $146.05 and September was down $1.85 at $147.10.

Direct cash cattle business was light to moderate, mostly Texas at $117 live, down $3 from last week’s weighted average. Thursday, there was trade in Kansas was at $117 to $118, $2 to $3 lower than the previous week, and the week’s dressed trade in the North was mainly at $187 to $188, down $2 to $3 from last week’s weighted average in Nebraska. There were also a few dressed sales reported in Nebraska Friday at $187 to $189. Asking prices for what’s left on the showlist were around $120 on the live basis in the South and $190 dressed in the North, with bids at $117 live and $186 to $187 dressed.

Boxed beef closed mixed on light to moderate demand and offerings. Choice was down $.21 at $206.22 and Select was up $.16 at $196.82. The estimated cattle slaughter of 115,000 head was unchanged on the week and up 4,000 on the year.

At the Farmers and Ranchers Livestock commission feeder cattle sale in Kansas, compared to the previous week, 600 to 700 pound feeder steers were $4 to $6 higher and 700 to 1,050 pound steers were $2 to $6 lower, with the bulk of the trade down $3 to $5. 500 to 750 pound heifers were $2 to $6 higher with 750 to 950 pounders weak to $3 lower. The USDA says trade was moderate with moderate to good demand and most cattle were freshly off Bluestem pastures and ranges. 80% of the feeder offering were steers and 92% of the weekly run weighed at least 600 pounds. Medium and Large 1 800 to 890 pound feeder steers brought $143 to $150.75 and 900 to 1,000 pounders ranged from $140 to $147.10. Medium and Large 1 630 to 690 pound feeder heifers sold at $$145.50 to $155.50 and 700 to 790 pound heifers were reported at $142 to $149.50.

The USDA reports hay sales in Iowa were mostly steady with a few instances of lower prices. Good small squares of alfalfa and grass ranged from $130 to $155 with large squares at $120 to $140. Fair large squares of grass sold at $117 to $120 with large rounds at $70 to $90. Large squares of wheat straw brought $96 to $130. Missouri hay movement was light with light demand for moderate supplies leading to steady prices. Supreme quality alfalfa was reported at $170 to $120, with premium at $150 to $180 and good at $120 to $160. Good quality mixed hay ranged from $75 to $100 with fair to good at $50 to $80. For Nebraska, compared to the previous week, round bales of alfalfa were steady to $10 higher and squares were steady. Grass hay was steady to $10 higher and ground and delivered hay was steady. Dehydrated alfalfa pellets were steady to $5 higher. The USDA says demand was good to very good for all available classes. In east/central Nebraska, premium large squares of alfalfa were reported at $180, with good large square bales at $150 and fair quality at $105 to $110. Good quality large rounds of alfalfa orchard grass brought $90 and good to premium large squares of grass hay sold at $115. 17% protein dehydrated alfalfa pellets ranged from $185 to $210. In the Platte Valley, good round bales of alfalfa came out at $80 to $85 with ground and delivered alfalfa at $95 to $110. 17% protein dehydrated alfalfa pellets sold at $185.

Lean hog futures were pressured by the recent steady to lower trend in cash and losses on the wholesale market. End of the month position squaring was also a factor for hogs. Contracts continue to hold a significant discount to the cash index. August was $.85 lower at $81.40 and October was down $1.17 at $66.50.

Cash hogs were steady to lower. It’s looking more and more like the expected seasonal expansion of market ready numbers is underway and that wholesale business has peaked for now. Aside from a firm close at the direct markets Thursday, buyers were able to successfully lower the cost of live inventory. Saturday’s kill is expected to be 64,000 head for a weekly slaughter of more than 2.2 million head.

Iowa/Southern Minnesota direct barrows and gilts closed $1.39 lower at $76 to $82.75 for a weighted average of $81.41, the Western Cornbelt was down $1.53 at $76 to $82.75 with an average of $81.23, and the Eastern Cornbelt was $.41 lower at $80.28 to $82 for an average of $80.70. National direct business was $1.03 lower at $76 to $82.75 with an average of $80.98. Butcher hogs at the Midwest cash markets were $2 lower at $64. Missouri direct butcher trade was steady at $77 to $78 on light to moderate supply and demand. Sows were steady at $54 to $68. Illinois direct sows were $1 higher at $62 to $73 with very good demand for moderate offerings. Barrows and gilts were weak at $51 to $58 on light to moderate demand for moderate offerings. Boars ranged from $10 to $38.

Pork closed down $1.19 at $98.75. Loins, ribs, hams, and bellies were sharply lower. The estimated hog slaughter of 432,000 head was up 6,000 on the week and 39,000 on the year.

The USDA says early weaned pigs were $5 lower than the previous week and all feeder pigs were $4 lower. Demand was light to moderate for moderate offerings and 46% of the week’s receipts were formula prices. Receipts were down on both the week and the year. Early weaned pigs had a total composite formula range of $17.50 to $44 for an average of $36.67 and the total composite cash range was $15 to $30 with an average of $20.05, for a weighted average of $28.54. The total composite cash range for feeder pigs was $40 to $56 with an average of $48.13.