Market News

Cattle futures supported by cash, wholesale business

 

Chicago Mercantile Exchange live cattle futures were up with more light, but higher than a week ago, direct trade during the session and firm to higher midday boxed beef. April was $1.55 higher at $119.35 and June was up $.72 at $103.72.

Feeder cattle were higher on cash and wholesale support, along with the weak corn. April was up $.07 at $137.30 and May was $.90 higher at $139.32.

Direct cash cattle business was light to moderate Friday. Sales in the North on the dressed basis were reported mainly at $195, up $5 from the previous week’s weighted average in Nebraska, with live sales ranging from $122 to $124. Light to moderate business was reported in the South Thursday, mainly at $121 to $122 on the live basis, up around $4 from last week’s weighted averages.

Boxed beef closed higher on light to moderate demand for moderate to heavy offerings. Choice was up $.64 at $211.98 and Select was $1.65 higher at $200.13. The estimated cattle slaughter of 114,000 head was 2,000 less than last week, but 7,000 more than last year. Saturday’s kill is projected at 40,000 head, which would put the weekly total at 624,000.

At the Farmers and Ranchers Livestock Commission feeder sale in Kansas Friday, compared to the previous week, steers weighing less than 850 pounds had a lower undertone with instances of $3 to $6 lower, while 850 to 1,000-pound steers were steady to $1 higher. 350 to 1,000-pound heifers were steady to lower with a limited comparable offering. The USDA says trade and demand were both moderate. Medium and Large 1 feeder steers weighing 600 to 700 pounds brought $156 to $168 and 850 to 950-pound steers ranged from $125 to $134. Medium and Large 1 feeder heifers weighing 600 to 700 pounds sold at $140 to $149 and 700 to 800-pound heifers were reported at $123 to $132.

The USDA reports the hay trend in Missouri was steady, with light to moderate supply and demand. The state’s supplies have been strained by the later than normal arrival of spring, but grass is starting to grow in many areas. Supreme round bales of alfalfa brought $180 to $250, with premium at $160 to $200. Good quality mixed grass hay sold at $100 to $150, with fair to good at $50 to $100. Good quality Brome grass was pegged at $100 to $150. For Nebraska, grass hay, alfalfa, ground and delivered hay, and dehydrated pellets were steady. The USDA says demand was good to very good before and after the week’s blizzard. The cold temperatures have limited growth in new crop alfalfa and some producers think cutting will be delayed until June. In Eastern/Central Nebraska, good large squares of alfalfa were reported at $145 to $150, with good large rounds at $85 to $95. Good to premium large rounds of grass hay sold at $100 to $120. Ground and delivered alfalfa was pegged at $120, with 17% protein dehydrated pellets at $230 and 15% protein sun-cured pellets at $210. In the Platte Valley, ground and delivered alfalfa ranged from $125 to $135, with ground and delivered alfalfa and corn stalks at $120 to $125 and ground and delivered alfalfa and soybean stubble at $115. 17% protein dehydrated alfalfa pellets brought $210 to $215, 15% protein sun-cured pellets at $185. In Western Nebraska, supreme large squares of alfalfa came out at $185, with good quality at $155 to $165. Ground and delivered protein was reported at $150 to $190, with 15% protein sun-cured pellets at $240.

Lean hog futures were lower on some lower cash during the session, contracts’ premium to the cash index, and the late week mostly weak trend in the wholesale market. June was down $.52 at $77.55 and July was $.67 lower at $80.02.

Cash hogs were mixed, with light closing negotiated numbers for the major direct markets. Some buyers had the needed numbers in hand heading into the weekend, but the coming week could see another round of higher bids, spurred by the seasonal tightening of market ready numbers, even if processing margins have weakened as the cutout value softened late in the week. The pork market continues to grapple with large available supplies after several months of record production, along with some international trade issues. China isn’t as big of a market as it used to be, but it is still a market for U.S. pork, and even if renegotiations have resumed, a new NAFTA deal might be weeks off.

Pork closed $.51 lower at $67.91. Loins, picnics, hams, and bellies were weak to lower, while ribs and butts were higher. The estimated hog slaughter of 454,000 head was down 3,000 on the week, but up 11,000 on the year. Saturday’s slaughter is seen at 124,000 head, which would put the weekly total at 2.436 million.

Iowa/Southern Minnesota direct barrows and gilts closed $.67 lower at $50 to $61.50 for a weighted average of $57.93 and the Western Cornbelt was down $.66 at $50 to $61.50 with an average of $57.74, but national direct business was $.14 higher at $50 to $61.50 for an average of $57.65. Butcher hogs at the Midwest cash markets were steady at $34 in a light test. Missouri direct butchers were steady to $2 higher at $45 to $48 on light to moderate supply and demand. Sows were steady to $4 higher at $25 to $44. Illinois direct sows were steady at $30 to $44 on moderate demand and offerings. Barrows and gilts were steady at $32 to $40, also with moderate demand and offerings. Boars ranged from $8 to $17.

The USDA reports early weaned pigs were $2 higher for the week, while all feeder pigs were $3 lower with light receipts. Demand was moderate overall for moderate offerings with 54% of receipts including formulated prices. For early weaned pigs, the total composite formula range was $30.79 to $43.03 with an average of $35.90 and the total composite cash range was $19 to $46 with an average of $34.40, so all early weaned pigs averaged $35.25. The total composite cash range for feeder pigs was $61 to $69 for an average of $64.59.