Market News

Direct cattle trade at sharply higher prices

 

Chicago Mercantile Exchange live cattle futures were steady to higher, closing before widespread direct cash cattle business got underway. The week’s cash optimism was rewarded, with prices up sharply on the week. February was up $.82 at $130.10 and April was $.40 higher at $127.65.

Feeder cattle were mixed on the mixed corn and position squaring ahead of the week’s widespread direct trade. March was down $.10 at $149.72 and April was up $.10 at $152.40.

Light to moderate direct cash cattle business developed by early Friday afternoon in all of the major feeding areas. Trade was reported at mostly $130 on the live basis, $4 higher than the previous week’s weighted average, and mostly $205 dressed, up $5 from the prior week’s weighted average for Nebraska. The final weekly trade totals will be out Tuesday, with most USDA offices closed Monday for Presidents’ Day.

Boxed beef closed mixed on moderate to fairly good demand for moderate to heavy offerings. Choice was up $.84 at $209.88 and Select was down $.02 at $205.12. The estimated cattle slaughter of 115,000 head was up 4,000 on the week and 7,000 on the year.

In Missouri, compared to the previous week, feeder steers and heifers were steady to $5 higher, with the biggest increases on 500 to 700 pounders headed for summer grazing, despite very dry to drought conditions in much of the state. The USDA says supplies at the start of the week were moderate because of winter weather, eventually becoming moderate to heavy. Medium and Large 1 feeder steers weighing 600 to 700 pounds brought $141 to $186 and 700 to 800 pound steers were reported at $138 to $164.25. Medium and Large 1 feeder heifers weighing 500 to 600 pounds sold at $139 to $178.75 and heifers weighing 600 to 700 pounds ranged from $133 to $165.60.

The USDA reports hay prices in Iowa were mostly steady with instances of $5 lower. Demand was moderate for a mostly moderate supply. Fluctuating temperatures have caused some stress to livestock and led to an increase in feed rations. The state’s hay supply is called mostly adequate, except for south central and southeastern areas, which did report drought conditions last year. The current Drought Monitor has 45% of Iowa as abnormally dry, compared to 53% the previous week. Supreme quality large squares of alfalfa brought $217 to $250 and premium sold at $200. Premium small squares of alfalfa and grass ranged from $165 to $200 with large squares at $180 to $215 and large rounds at $185. Small squares of wheat straw were reported at $200 with small squares of corn fodder at $70. In Missouri, hay prices were steady to firm with light movement and moderate demand for a moderate supply. The USDA says most of the state is dry and hay supplies have lessened as feeding season has worn on. Large rounds of supreme quality alfalfa brought $180 to $250, with premium at $160 to $200. Good quality mixed grass hay ranged from $75 to $100 and good quality bromegrass sold at $100 to $150. For Nebraska, alfalfa hay was unevenly steady, while grass hay and ground and delivered hay were fully steady. Dehydrated alfalfa pellets were steady to $10 higher. The USDA says demand for sun cured and dehydrated pellets was good across the state and western areas saw good demand for all types of baled hay, with some of that demand coming from Colorado, in addition to solid local demand. Demand was called softer in eastern and central areas after some recent warmer weather. In the eastern and central region, supreme large squares of alfalfa sold at $165 and good quality ranged from $130 to $135. Premium large rounds of alfalfa brought $90 to 100 and premium large rounds of grass hay were reported at $85 to $100. 17% protein dehydrated alfalfa pellets came out at $195 to $230. In the Platte Valley, good large rounds of alfalfa were pegged at $85 to $95 with a few at $110. Good to premium large rounds of grass hay were reported at $90 to $100. Ground and delivered alfalfa brought $120 to $125 with some loads at $130. 17% protein dehydrated alfalfa pellets sold at $195 to $210. In western areas, supreme large squares of alfalfa came out at $185 with premium at $150 to $165. Ground and delivered alfalfa was reported at $150 and 15% protein sun cured alfalfa pellets ranged from $215 to $225.

Lean hog futures were lower on the week’s steady to lower cash trend, commercial selling, and pork demand uncertainties. Also, most contracts are now at a premium to the cash index. April was down $1.57 at $68.15 and May was $.97 lower at $74.92.

Cash hogs were steady to lower. Buyers continued to limit spending to improve margins, watching market ready numbers and wholesale business. There was talk of at least a couple of plants either going dark or limiting runs over the next few days because of margins and generally tighter live supplies in some areas. The USDA’s estimate for Saturday’s kill was 84,000 head.

Pork closed $.35 higher at $77.34. Loins, butts, ribs, and bellies were firm to sharply higher. Picnics and hams were weak to sharply lower. The estimated hog slaughter of 450,000 head was up 15,000 on the week and 13,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $.41 lower at $59 to $66 for a weighted average of $65.09, the Western Cornbelt was down $.45 at $59 to $66 with an average of $65.01, and national direct business was $.95 lower at $59 to $66 for an average of $64.82. Butcher hogs at the Midwest cash markets were steady at $48 to $50. Missouri direct butchers were steady at $64 to $65 on light to moderate supply and demand. Sows were steady at $40 to $54. Illinois direct sows were sharply lower at $42 to $54 on light to moderate demand for moderate offerings. Barrows and gilts were $2 lower at $40 to $46 on light to moderate demand for moderate offerings. Boars ranged from $10 to $32.

The USDA reports early weaned feeder pigs were $4 lower and all feeder pigs were $1 higher, with moderate demand and offerings. For early weaned pigs, the total composite formula range was $39.50 to $64.74 with an average of $47.88 and the total composite cash range was $61 to $74 with an average of $68.21, for a total weighted average of $55.28. The total composite cash range on feeder pigs was $78 to $90 with an average of $83.99.