Market News

Cattle rally on short-covering

At the Chicago Mercantile Exchange, cattle futures closed higher on short-covering in limited trade activity.  Today’s Cattle on Feed report was within pre-report estimates and were relatively neutral to the market.  Contracts were able to finish the week on a positive note despite pressure from wholesale values.  June live cattle closed $.25 higher at $104.65 and August live cattle closed $.52 higher at $102.30.  August feeder cattle closed $1.62 higher at $144.92 and September feeder cattle closed $1.35 higher at $144.45.

Another slower day for direct cash cattle business.  There were a few scattered bids reported across cattle country.  The best test was in Nebraska at $177 – about $6 lower than last week’s weighted average.  It looks like $110 was the live price – which is about $5.00 lower than last week’s weighted average basis.

At the Douglas County Livestock Auction in Missouri, steer and heifer calves were steady to $5.00 higher and yearlings were not well tested.  Receipts were up on the week and the year.  The USDA says demand was moderate to good and supply was moderate to heavy.  Feeder supply included 41 percent steers and just 13 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 430 to 500 pounds were $176.00 to $185.50 and feeder steers 500 to 560 pounds were $160.00 to $175.00.  Medium and Large 1 feeder heifers 350 to 400 pounds were $155.00 to $166.00 and feeder heifers 435 to 500 pounds were $147.50 to $155.50.

At the Missouri Hay Market, the USDA says hay supplies are light to moderate, demand is moderate, and prices are steady.  Many acres of wheat are being turned into haylage as farmers work to rebuild their supplies.  Grass hay and alfalfa cutting are also underway.  First cuttings have not been the best after the cold April.  Supreme quality alfalfa is bringing $180.00 to $250.00; premium quality alfalfa is $100.00 to $120.00.; and good quality alfalfa brought $120.00 to $160.00.  Good quality mixed grass hay brought $100 to $150.00 and good quality bromegrass brought $100.00 to $150.00.

Boxed beef closed weak to lower on light to moderate demand and moderate to heavy offerings.  Choice down $1.57 at $227.43 and Select closed $.31 lower at $204.62.  The Choice/Select spread closed at $22.81.  Estimated cattle slaughter is 119,000 head even on the week and up 2,000 on the year.  Saturday’s estimated kill is 49,000 head down 18,000 on the week and up 12,000 on the year.

Lean hog futures were mostly higher in limited trade activity, finding support in the wholesale values.  The forecast for hot temperatures over the holiday weekend could help lower carcass weights.  The front-month contract wasn’t able to gain any momentum and closed lower.  Supply is still a concern as trade negotiations with China and the NAFTA deal are ongoing.   June lean hogs closed $.62 lower at $74.20 and July lean hogs closed $.77 higher at $77.55.

Cash hogs closed firm.   Buyers continue to watch the availability of market-ready numbers.  The long holiday weekend will lighten slaughter runs for a few days.  The shorter runs and increased demand from the long-weekend could be supportive to wholesale prices next week.  Supply and Demand concerns still loom as the trade negotiations with China and on the NAFTA deal are ongoing.  Barrows and gilts at the Iowa/Southern Minnesota closed $.28 higher with a range of $62.00 to $66.00 and a weighted average of $65.22; the Western Corn Belt closed $.27 higher with a range of $62.00 to $66.00 and a weighted average of $65.16; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.35 higher with a range of $58.00 to $60.00 and a weighted average of $65.07.

The USDA says early-weaned pigs were $2.00 per head lower.  All feeder pigs were $6.00 per head lower. Demand was light to moderate for moderate offerings.  Receipts included 67 percent formulated prices.  Total composite formula rage was $26.65 to $44.00 with an average of $33.95.  Total composite cash range was $18.00 to $35.00 with a weighted average of $27.24.  The average for all early weaned pigs was $32.13 and the average for all feeder pigs was $48.83.

Midwest cash markets are closed today.  At the Interior Missouri Direct, barrows and gilts are steady at $54.00 to $58.00 with light to moderate supply and demand.  Sows are steady at $28.00 to $41.00.  For the week barrows and gilts are steady to $2.00 higher and sows are steady to $2.00 lower.

Pork values closed sharply higher – up $1.49 at $75.60.  The primals were mixed but saw sharp gains in the loin, the ribs, and the hams.  Estimated hog slaughter is 442,000 head – up 6,000 on the week and 16,000 on the year.  Saturday’s estimated kill is 27,000 down 49,000 on the week and up 22,000 on the year.