Market News

Cattle futures mixed ahead of on feed numbers

 

Chicago Mercantile Exchange live cattle futures were mixed on spread trade, end of the week consolidation, and position squaring ahead of the USDA’s monthly Cattle on Feed report. Weekly beef exports were a new marketing year low, but Thursday’s Cold Storage report was nominally bullish. February was down $.35 at $128 and April was $.52 lower at $124.85.

Feeder cattle were mixed on spread trade, the mixed corn, and pre-report position squaring. March was unchanged at $146 and April was up $.42 at $148.50.

Direct cash cattle markets were quiet, with activity wrapped up ahead of the USDA’s monthly Cattle on Feed report. The week’s direct cash business was light to moderate, mostly at $127 to $128 on the live basis, down $2 to $3 on the week, and primarily $204 to $205 dressed, steady to $1 lower. Asking prices for what was left were reported at $130 live and $206 dressed, with scattered bids at $128 live and $202 dressed, potential signals of where the coming week’s market could start out.

Boxed beef closed mixed on moderate to fairly good demand for light offerings. Choice was down $.03 at $218.37 and Select was up $.76 at $212.82. The estimated cattle slaughter of 108,000 head was down 7,000 on the week and 1,000 on the year.

For the week in Missouri, feeder steers and heifers were steady to $2 higher. Winter weather made an impact on sale barns, but with most of the state very dry, precipitation was generally welcome. The state’s supply was moderate, with the best demand for grazing cattle in good condition, not carrying extra flesh. Medium and Large 1 feeder steers weighing 600 to 700 pounds brought $142 to $188.50 and 700 to 800 pounds steers ranged from $130 to $175. Medium and Large 1 feeder heifers weighing 500 to 600 pounds sold at $139 to $177 and 600 to 700 pound heifers were reported at $125 to $165.50.

In Iowa, hay was mostly $5 lower than the previous week. The USDA says demand was light because of ice storms, with a moderate supply. Premium small squares of alfalfa and grass sold at $165 to $200, with large squares at $180 to $215 and large rounds at $185. Good small squares of alfalfa and grass brought $135 to $160, with large squares at $140 to $170 and large rounds at $145 to $175. Good quality large squares of grass were reported at $135 to $145 and large rounds were pegged at $140. For Missouri, prices were steady to firm, with light movement, moderate supplies, and moderate demand. Large rounds of supreme quality alfalfa ranged from $180 to $250, with premium at $160 to $200 and good quality at $120 to $160. Large rounds of good quality mixed grass hay came out at $75 to $100 and large rounds of good quality bromegrass sold at $100 to $150. Hay prices in Nebraska were unevenly steady, with grass hay fully steady. Ground and delivered hay and dehydrated pellets were also steady. The USDA says demand was good with a wide range of buyers, many whom are concerned about dry weather and stock piling hay, if possible. In eastern and central Nebraska, good quality large squares of alfalfa were reported at $130 to $150 with premium large rounds at $90 to $100 and good large rounds at $85 to $95. Good large squares of alfalfa and orchard grass ranged brought $150. Good to premium large rounds of grass hay ranged from $85 to $100. Ground and delivered hay was pegged at $120. 17% protein dehydrated alfalfa pellets sold at $230. In the Platte Valley, good large rounds of alfalfa came out at $85 to $95, with a few up to $110. Ground and delivered alfalfa ranged from $120 to $125, with some loads at $130. Alfalfa and stover mix were reported at $110 to $115, with a few at $120 to $125. 17% protein dehydrated alfalfa pellets sold at $195 to $210. In western Nebraska, supreme large square bales of alfalfa were pegged at $185, with premium at $150 to $165 and good quality at $130 to $145. Ground and delivered alfalfa brought $150 and 15% protein sun-cured alfalfa pellets sold at $215 to $225.

Lean hog futures were mixed, mostly firm, on the higher midday pork, steady to lower cash, spread activity, and demand uncertainties. The recent Cold Storage and Red Meat Production numbers reflected the large supply of pork, but weekly export sales were a new marketing year and domestic demand is good. April was up $.10 at $71.37 and June was $.07 higher at $83.02.

Cash hogs were steady to lower. Buyers extended their leverage again, spending less to move the needed numbers, while improving margins. Some areas did experience weather disruptions, but chain speed stayed at a high level and movement was generally heavy enough to keep supplies from backing up. The USDA’s estimate for Saturday’s kill is 123,000 head.

Pork closed $.78 higher at $79.48. Loins, butts, picnics, ribs, and bellies were firm to sharply higher, while hams were weak. The estimated hog slaughter of 448,000 head was up 5,000 on the week and 64,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $1.04 lower at $59 to $63.75 for an average of $62.67, the Western Cornbelt was down $1.01 at $57 to $63.75 with an average of $62.57, and national direct business was $.93 lower at $57 to $63.75 for an average of $62.63. Butcher hogs at the Midwest cash markets were $2 lower at $44. Missouri direct butchers were steady at $55 to $61 on light to moderate supply and demand. Sows were steady at $38 to $54. Illinois direct sows were $2 to $3 lower at $40 to $55 on light to moderate demand and offerings. Barrows and gilts were $2 lower at $40 to $44 on moderate demand and offerings. Boars ranged from $10 to $28.

The USDA reports early weaned pigs were $2 lower, while all feeder pigs were $1 higher. Demand was moderate for moderate offerings. For early weaned pigs, the total composite formula range was $39.50 to $51.20, for an average of $44.99, and the total composite cash range was $45 to $71, for an average of $66.09. The weighted average for all early weaned pigs was $55.64. The total composite cash range for feeder pigs was $82 to $87, with an average of $85.86.