Market News

Cattle futures close higher on stronger cash trade

At the Chicago Mercantile Exchange, cattle futures ended the week sharply higher on early technical momentum and today’s better than expected cash trade.  Feeder cattle futures found additional support in Friday’s lower move in corn. December live cattle closed $2.62 higher at $118.90 and February live cattle closed $1.87 higher at $121.02.  January feeder cattle closed $1.50 higher at $147.75 and March feeder cattle closed $1.20 higher at $145.55.

Direct cash cattle trade picked up significantly toward the end of the day.  Live business in the South ranged from $118 to $120, $1 to $3 higher than last week’s weighted averages.  Most of the late week’s dressed trade in the North was at $190, $3 higher than last week’s weighted average basis in Nebraska.  Once the trade settles – it’s expected to see a moderate trade volume for the week.

Boxed beef closed mixed on light to moderate demand and moderate offerings.  Select and Choice rib, chuck, round, and loin cuts were steady to week.  Choice closed $.83 higher at $201.87 and Select closed $.44 lower at $183.25. The Choice/Select spread increased to $18.62.

At the Ogallala Livestock Market in Nebraska, compared to the previous week steers and heifers were $2.00 to $8.00 lower.  Receipts totaled 5,100 head down for the week.  Feeder supply included 63 percent steers and 37 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 609 to 649 pounds were $165.00 to $172.00 and Medium and Large 1’s 661 to 693 pounds were $163.50 to $171.50.  Feeder heifers, Medium and Large 1’s 502 to 548 pounds were $153.00 to $172.00 and Medium and Large 1’s 602 to 648 pounds were $140.50 to $154.00.

At the Nebraska Hay Market compared to last week alfalfa, grass hay, and ground and delivered hay was steady.  Dehy alfalfa pellets in Eastern Nebraska were steady to $10.00 higher and they were steady to $5.00 higher in Platte Valley.  The USDA says demand was moderate to good for most offerings of baled hay.  In Eastern/Central Nebraska Alfalfa Good to Premium large squares were $150.00 to $175.00 and Premium large round bales were $100.00 to $110.00.  Alfalfa/Orchard Grass hay, premium large square bales were $165.00.  Grass hay, good large square bales were $90.00 and premium large round bales were $85.00 to $90.00.  Dehy alfalfa pellets, 17 percent protein were $195.00 to $230.00.  In the Platte Valley area, alfalfa good large round bales were $85.00 to $90.00.  Grass hay, large round bales were $90.00 to $100.00.  Dehy pellets, 17 percent protein were $190.00 to $200.00.  In the Panhandle, Alfalfa premium large square bales were $160.00 to $180.00.  Alfalfa/Orchard grass good to premium large square bales were $140.00 to $150.00.

Estimated cattle slaughter is 118,000 head, up 4,000 on the week and 10,000 on the year.  Saturday’s estimated kill is 37,000 head down 8,000 on the week and up 2,000 on the year.

Lean hog futures closed higher on short covering.  This was the third session in a row where lean hog futures closed higher.  Wholesale values were able to stabilize and support today’s higher move.  February lean hogs closed $.90 higher at $68.52 and April lean hogs closed $.55 higher at $72.80.

Cash hogs closed steady. The trade continues to watch the availability of market-ready numbers.  Slaughter totals have been aggressive this week and that looks to continue through tomorrow.  However, heavier weights are adding more pork and that’s causing concern supply will outpace demand.

Barrows and gilts at the Iowa/Southern Minnesota closed $.03 higher with a range of $53.50 to $57.00 and a weighted average of $56.35; the Western Corn Belt closed $.11 higher with a range of $53.50 to $57.00 and a weighted average of $56.30; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.13 lower with a range of $50.00 to $57.85 and a weighted average of $56.47.

The USDA says early-weaned pigs were $6.00 per head higher, all feeder pigs were $5.00 higher, receipts included 68 percent formulated prices.  The demand was good for light to moderate offerings.  The total composite formula range was $40.00 to $64.74 with an average of $46.81 and the total composite cash range was $37.00 to $72.00 with an average of $63.23.  The average for all early weaned pigs was $49.65 and the average for all feeder pigs was $73.37.

The Midwest cash markets were closed Friday.

At the Interior Missouri Direct, barrows and gilts are steady to $3.00 lower at $50.00 on light to moderate supply and demand.  Sows were steady at $30.00 to $38.00.  For the week, barrows and gilts are steady to $3.00 lower and sows are $2.00 to $3.00 higher.

At Illinois, slaughter sow prices are steady at $26.00 to $40.00 with moderate demand for light to moderate offerings.  Barrows and gilts are weaker at $34.00 to $41.00 with moderate demand for moderate offerings.

Pork value closed firm – up $.26 at $77.57.  The primals were mostly higher with the exception of the sharp declines in the rib and the picnic.

Estimated hog slaughter is 464,000 head up 5,000 on the week and 37,000 on the year.  Saturday’s estimated kill is 248,000 head up 24,000 on the week and down 62,000 on the year.