Market News

Cattle futures close lower ahead of next week’s report

At the Chicago Mercantile Exchange, cattle futures ended the week lower in light trade volume as fundamental and technical support eroded.  Prices continued to drift ahead of next week’s reports which include cold storage, livestock slaughter, and the latest Cattle on Feed numbers.  April live cattle closed $.60 lower at $121.25 and June live cattle closed $.55 lower at $111.75.  March feeder cattle closed $.65 lower at $139.97 and April feeder cattle closed $.62 lower at $140.20.

Direct cash cattle trade ended the week slow.  It was another day of light, scattered trade reported generally steady with the rest of the week’s business.  Cattle are priced firm and packers are reluctant to pay more.  Asking prices are around $128 to $129 live and $207 dressed with bids reported at $127 live and $204 to $205 dressed.

Boxed beef closed firm on moderate demand and light offerings.  Choice up $.60 at $225.59 and Select up $.55 at $216.86.  The Choice/Select spread closed at $8.73.

At the Ogallala Livestock Auction in Nebraska, receipts were significantly higher compared to last year.  The USDA says demand was good on all cattle offered.  Feeder supply included 50 percent steers and 82 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 656 to 691 pounds were $166.50 to $186.00 and Medium and Large 1’s 756 to 798 were $150.00 to $160.00.  Feeder heifers, Medium and Large 1’s 602 to 633 pounds were $148.00 to $165.00 and Medium and Large 1’s 703 to 746 pounds were $132.50 to $150.00.

At the Nebraska Hay Market – prices were steady compared to the previous week.  The USDA says demand was good to very good across the state for operators of all sizes.  Some ground and delivered sellers noted supplies are shrinking and hope they have enough product to make it to the first cutting of alfalfa.  In Eastern Nebraska Alfalfa supreme large square bales brought $200.00, premium large squares were $150.00 to $170.00 and Good large squares were $130.00 to $150.00.  Premium large round alfalfa/orchard grass were $65.00 per bale and premium small squares of grass hay brought $150.00.  Dehy alfalfa pellets, 17 percent protein were $230.00.  In the Platte Valley area, alfalfa good large round bales were $90.00 to $105, cornstalk bales were $60 to $65.00 and pellets 17 percent protein were $210.00.  In Western Nebraska alfalfa, supreme large squares were $185.00 and good to premium large square bales were $160.00.  Ground and delivered alfalfa was $150.00.

Estimated cattle slaughter is 107,000 head – down 5,000 on the week and up 6,000 on the year.  Saturday’s estimated kill is 22,000 head – up 6,000 on the week and down 19,000 on the year.

Lean hog futures started the week out strong but ended the week lower under pressure from both supply and demand concerns.  Contracts are oversold and pork values lack confidence.  April lean hogs closed $.27 lower at $65.45 and May lean hogs were unchanged at $72.75.

Cash hogs closed sharply lower.  The trade continues to watch hog weights and the availability of market-ready numbers.  Export demand has continued to show strength, however concerns over contentious trade talks have the market worried about the potential for a negative impact on demand.  Processor margins have continued to improve this week.

Barrows and gilts at the Iowa/Southern Minnesota closed $1.66 lower with a range of $53.00 to $58.50 and a weighted average of $56.01; the Western Corn Belt closed $1.56 lower with a range of $53.00 to $58.50 and a weighted average of $57.02; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct is $1.31 lower with a range of $53.00 to $58.50 and a weighted average of $57.26.

The USDA says early-weaned pigs were $11.00 per head lower and all feeder pigs were $1.00 per head higher.  Receipts included 57 percent formulated prices.  The demand was light to moderate for light to moderate offerings.  The total composite formula range was $38.75 to $53.96 with an average of $43.98 and the total composite cash range was $37.00 to $67.50 with an average of $60.34.  The average for all early weaned pigs was $45.94 and the average for all feeder pigs was $87.51.

Butcher hogs at the Midwest cash markets are $2.00 lower at $44.00.  The markets at Zubrota, Minnesota and Garnavillo, Iowa are closed.

At the Interior Missouri Direct, barrows and gilts are steady to $1.00 lower with light to moderate supply and demand.  Sows are steady to $1.00 lower at $33.00 to $45.00.  For the week, barrows and gilts are $1.00 to $2.00 lower and sows are $1.00 to $3.00 lower.

At Illinois, slaughter sow prices are weak with light to moderate demand for moderate to heavy offerings.  Sow prices range from $34.00 to $50.00.  Barrows and gilts are $1.00 lower at $35.00 to $42.00 with light to moderate demand for moderate offerings.

Pork value closed weak – down $.23 at $72.57.  The primals were mixed with a sharp decline in the ham and a sharp gains in the belly.

Estimated hog slaughter is 450,000 head – down 8,000 on the week and up 22,000 on the year.  Saturdays estimated kill is 118,000 head – down 3,000 on the week and down 27,000 on the year.