Market News

Cattle, hogs mixed ahead of USDA numbers

At the Chicago Mercantile Exchange, live cattle futures closed firm in a narrow range ahead of widespread direct cash business and ahead of the USDA’s Cattle on Feed and Cold Storage reports.  Feeder cattle futures were mostly lower ahead of the USDA reports.  April live cattle closed $.27 higher at $128.87 and June live cattle closed $.22 higher at $119.47.  March feeder cattle closed $.32 lower at $142.90 and April feeder cattle closed $.22 lower at $145.30. 

A few more bids started to surface following the release of the USDA’s latest round of delayed reports.  Heading into the end of the day bids are at $123 to $125 live and $202 dressed.  Asking prices have been holding firm at $128 live and $205 to $207 dressed.  We’ll have a better grasp of this week’s business Monday morning. 

At the Mitchell Livestock Auction in South Dakota, receipts are down on the week and almost steady on the year.  Compared to last week feeder steers $2 to $5 lower, except 600 to 650 were $2 to $3.  Feeder heifers under 750 pounds are $2 to $5 lower, heifers over 750 pounds are steady to $1 lower.  The USDA says demand was just moderate this week.  There were plenty of high-quality steers and heifers on offer.  The ongoing battle with Mother Nature has decreased cattle performance.  Feeder supply included 62 percent steers and 90 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 752 to 799 pounds brought $137.50 to $150.  Medium and Large 1 feeder heifers 701 to 749 pounds brought $132.25 to $137.25. 

At the Iowa Hay Market, hay and straw continue to be in short supply.  Forage movement has been limited as winter weather continues to plague Iowa.  Top quality alfalfa is having to be trucked in from other states.  The USDA says cow/calf operators are struggling as they’ve used up their stockpiles of straw in an attempt to keep cows dry.  Small squares sales are mostly being held directly from the farm.  Alfalfa supreme small squares are at $360 to $400, premium small squares are $280 to $300 and premium large squares are $290 to $345.  Alfalfa/Grass fair small squares are $155.  Grass good large squares are $150 to $215.  Oat hay premium large rounds are $225 and fair large rounds are $170 to $190.  Oat straw small squares are $200 to $320.  Wheat straw small squares are $240 to $280 and large squares are $165 to $170.  Rye straw large rounds are $65 per bale. 

Boxed beef values closed higher on good demand and light offerings.  Choice closed $1.32 higher at $219.39 and Select closed $.94 higher at $212.35.    Estimated cattle slaughter 114,000 head – up 3,000 on the wee and 6,000 on the year.  Saturday’s estimated kill is 27,000 head – down up 1,000 on the week and 4,000 on the year. 

Lean hog futures closed mixed on spread adjustments ahead of the Cold Storage report and waiting to see progress reports from trade negotiations with China.  April lean hogs close $.50 lower at $55.45 and May lean hogs closed $.32 lower at $65.47. 

Cash hogs closed Cash hogs closed steady.  Market ready supplies remain more than ample.  The near-record and record large slaughter runs are likely adding more pork to a market that continues to struggle with demand uncertainty.  All eyes are on the ongoing discussions about trade deals – specifically those with China.  And while there are been some reported progress made, there is still a long way to go before a deal is finalized. Barrows and gilts at the Iowa/Southern Minnesota closed $.28 higher with a range of $44 to $47 for a weighted average of $46.30; the Western Corn Belt closed $.46 higher with a range of $44 to $47 for a weighted average of $46.22; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.42 higher with a range of $43.50 to $47.85 for a weighted average of $46.76. 

The USDA says early weaned pigs were $2.00 per head lower.  Feeder pigs had too few receipts for a market test. Demand was light for moderate offerings.  Receipts included 60 percent formulated prices.  Total composite formula range was $37 to $58.46 with an average of $46.29.  Total composite cash range was $44 to $65 with a weighted average of $53.44.  The average for all early weaned pigs was $48.91 and the average for all feeder pigs was $67.32.

Midwest cash markets are closed today. 

At Illinois, slaughter sow prices are mixed at $25 to $42 with moderate demand for moderate offerings.  Receipts are up on the week and down slightly on the year.  Barrow and gilts prices are steady to $1 lower at $25 to $33 with light to moderate demand for moderate offerings. 

Pork values closed sharply lower – down $2.22 at $59.01.  Butts and bellies were sharply lower – including at $9.21 drop in the bellies.  Loins, picnics and hams were weak.  Ribs closed firm. 

Estimated hog slaughter is 472,000 head – up 7,000 on the week and 23,000 on the year.  Saturday’s estimated kill is 150,000 head – down 68,000 on the week and up 6,000 on the year.