Market News

Cattle, hog futures close lower

 

Chicago Mercantile Exchange live cattle futures were lower Friday on end of the month profit taking, the midday drop in boxed beef, and traders waiting for widespread direct cash business. June was down $1.17 at $152.32 and August was $1.47 lower at $151.27.

Feeder cattle futures were sharply lower on the slow to develop cash trade and month end profit taking. August was $2.00 lower at $222.95 and September was down $1.57 at $221.67.

Direct cash cattle business was slow to develop Friday. Packers may have been short bought to start out the week, but that didn’t motivate any early direct cash trade. By Friday afternoon, buyers and sellers finally got the ball rolling, with early live and dressed sales basically steady with the previous week. Live sales were reported at $159 to mostly $160 and Dressed business was mostly at $252 to $253, with a few in Iowa selling as low as $250. Around Missouri, feeder steers and heifers were steady to mostly $5 higher, with USDA noting several instances of $10 higher. The supply was light throughout the week and demand was good, with many unable to plant or make hay because of rain. 500 to 549 pound feeder steers sold at $260 to $309 and 600 to 650 pounders ranged from $230 to $276. 500 to 548 pound feeder heifers brought $233 to $267 and 550 to 598 pound heifers sold at $221 to $267.

Alfalfa hay, grass hay, and ground and delivered hay in Nebraska was steady. Old crop dehydrated pellets and meal in northeastern areas were $5 lower and sun-cured pellets in the Platte Valley were steady. Most producers are ready to cut alfalfa, but wet weather has kept them out of the fields. In northeast/central Nebraska, good large rounds of alfalfa sold at $110 to $130 and good large rounds of grass hay brought mostly $110 to $130, with a few at $145. Dehydrated alfalfa pellets, 17% protein, and old crop meal sold at $250. In the Platte Valley, ground and delivered hay sold at $110 to $130. Trade was inactive in Iowa. Missouri has seen a very slow start to the hay season. The supply was moderate and demand was light, with steady prices. Supreme quality alfalfa sold at $180 to $200 and good quality mixed grass hay ranged from $75 to $95.

Boxed beef cutout values were sharply lower on light demand and moderate offerings. Choice was down $4.26 at $254.99 and Select was $2.91 lower at $243.83. The estimated cattle slaughter of 115,000 head was 6,000 more than a week ago, but 5,000 less than a year ago.

Lean hog futures were lower on month end profit taking, most contracts’ premium to the cash index, and the mostly lower cash business. June was down $.77 at $83.82 and July was $1.17 lower at $83.45.

Cash hog markets were mostly steady to lower. Even with fairly slow country receipts, most packers were able to get the needed numbers. Saturday’s slaughter is projected at 170,000 head, which would put the weekly kill at 1.856 million head, 5.7% larger than last year. The total was well below the previous week due to Memorial Day.

National Direct barrows and gilts closed $1.40 lower at $68 to $80.50 with a weighted average of $78.14. The Eastern Cornbelt was down $.66 at $68 to $78 for an average of $77.12, the Western Cornbelt was $1.68 lower at $72 to $80.50 with an average of $79.69, and Iowa/Southern Minnesota had no recent comparison with a range of $72 to $80.50 and a weighted average of $79.76. Butcher hogs at the Midwest cash markets were steady at $53 to $55. The Missouri Direct base carcass meat price was steady to $2 higher at $74 on light to moderate supply and demand. Missouri sows were steady at $20 to $30.

The pork carcass cutout value was up $2.17 at $86.80. Butts were sharply lower, all other primals were firm to sharply higher. The estimated slaughter of 422,000 head was up 11,000 on the week and 10,000 on the year.