Market News

Cattle futures higher on cash optimism

At the Chicago Mercantile Exchange, cattle futures closed sharply higher on short covering and optimism that once cash business happened, it would be at higher levels.  At the end of the day Friday, buyers and feedlot managers were still in a standoff.  October live cattle closed $3.00 higher at $113.80 and December live cattle closed $2.65 higher at $118.05.  September feeder cattle closed $2.47 higher at $157.42 and October feeder cattle closed $3.47 higher at $158.87.

Direct cash cattle trade remained quiet through late in the afternoon on Friday.  A handful of deals had been reported in Iowa at $170 to $172.  Bids were at $106 to $109 live and $170 to $172 dressed and asking prices held firm at $111 to $112 live and $175 to $177 dressed.  The wide spread between the two kept any business from being completed.

At the Herreid Livestock Market in South Dakota, receipts are down on the week and almost even on the year.  Compared to last week, the best test was on steers 900 to 950 pounds, which were steady and steers 1000 to 1050 pounds, which were $3 to $4 higher.  Heifers were not well compared.  The USDA says demand was good to very good for the yearling offering.  Several loads and packages, as well as a string of 900 steers made of the offering of cattle coming off of grass.  Flesh quality was mostly attractive.  Feeder supply included 75 percent steers and 98 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 876 to 883 pounds brought $152.75 to $155.50 and feeder steers 914 to 948 pounds brought $151 to $154.50.  Medium and Large 1 feeder heifers 844 to 846 pounds brought $134 to $141 and feeder heifers 959 to 986 pounds brought $130.0 to $141.75.

At the Nebraska Hay Market, compared to last week all forages sold steady.  The USDA says demand was light this week as prospective buyers were all busy with fall hay and silage production.  Demand on dairy has also slowed.  Warm and dry weather helped farmers with their final push to get forages baled or chopped before this fall and winter.  In Eastern/Central Nebraska Alfalfa good large squares brought $160 to $180 and good large round brought $80 to $100.  Premium small square bales brought $160 to $170.  Dehy Alfalfa pellets 17 percent protein brought $230 to $240.  In the Platte Valley area, good round bales brought $100 to $105.  Ground and delivered alfalfa brought $130 to $135.  Ground and delivered cornstalks brought $85 to $95.  Dehy alfalfa pellets 17 percent protein brought $215 to $220.  Sun-cured alfalfa pellets 15 percent protein brought $200.  In Western Nebraska, good large alfalfa squares brought $150 and good large round brought $130 to $135. Sun-cured alfalfa pellets 15 percent protein brought $245.

Boxed beef cutout values closed mixed – steady on Choice and lower on Select on light to moderate demand and offerings.  Choice up $.23 at $204.27 and Select down $.77 at $196.47.   The Choice/Select spread is $7.80.

Estimated cattle slaughter is 119,000 head – even on the week and up 4,000 on the year.  Saturday’s estimated kill is 57,000 head – down 33,000 on the week and down 4,000 on the year.

Lean hog futures closed higher on higher wholesale values and carryover support from the cattle markets.  The industry continues to watch to see the full impact of Hurricane Florence.  Several packing plants had shut down in advance of the storm. A major disruption would back up the supply chain, could potentially send slaughter weights soaring, and add more meat to a market that has too much in it.  October lean hogs were $.55 higher at $56.22 and December lean hogs closed $.72 higher at $56.65.

Cash hogs closed lower.  The industry is waiting to see the full impact of Hurricane Florence to the Carolinas.  Several hog processing facilities have shut down and depending on damage could remain closed for several days.  The disruption has the potential to also increase hog weights, ultimately adding more meat to an already saturated market.  The spread of African Swine Fever in China is still a concern, especially after another case was discovered in Belgium.

Barrows and gilts at the Iowa/Southern Minnesota closed $1.54 lower with a range of $44 to $50 for a weighted average of $49.21; the Western Corn Belt closed $1.66 lower with a range of $44 to $50 for a weighted average of $49.07; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.30 lower with a range of $44 to $50 for a weighted average of $48.96.

The USDA says early-weaned pigs were $2.00 per head higher.  All feeder pigs were $9.00 per head higher. Demand was moderate for moderate offerings.  Receipts included 47 percent formulated prices.  Total composite formula rage was $32.88 to $44.00 with an average of $37.94.  Total composite cash range was $18.00 to $36.50 with a weighted average of $28.11.  The average for all early weaned pigs was $33.57 and the average for all feeder pigs was $31.32.

Butcher hogs at the Midwest cash markets are steady at $26.

At Illinois, slaughter sow receipts are down on the week and up on the year.  Prices are $1 higher at $16 to $29 with light to moderate demand for moderate offerings.  Barrows and gilts are $2 higher at $26 to $34 with moderate demand for moderate offerings.

Pork cutout values closed sharply higher – up $3.48 at $74.53.  The primals were all higher, with the bellies closing more than $7 higher and the loins more than $5 higher.  The rest of the primals were all firm to sharply higher.

Estimated hog slaughter is 402,000 head – down 64,000 on the week and down 47,000 on the year.  Saturday’s estimated kill is 164,000 head – down 178,000 on the week and down 17,000 on the year.