Market News

Direct cattle trade slow to develop

Chicago Mercantile Exchange live cattle futures were mostly higher, closing before the start of the week’s widespread direct cash business. Traders seemed fairly optimistic and boxed beef was firm to sharply higher at midday. February was down $.57 at $126.52 and April was up $.47 at $127.37.

Feeder cattle were mostly higher on the same factors as the live pit. January was $.02 higher at $141.45 and March was $.10 lower at $142.82.

Direct cash cattle business was very slow to develop as buyers and sellers waited until Friday afternoon to get the ball rolling again this week. By Friday afternoon, what trade that had been reported was limited to dressed sales in Nebraska and Iowa at $197 to $198. With the still active USDA offices closed Monday, the full extent of weekly business won’t be known until Tuesday. Asking prices were $127 to $130 on the live basis and $200 to $203 dressed, with bids at $122 to $124 live and $195 to $197 dressed. The industry is waiting to see what happens with the shutdown and the probable delays for some major, market moving reports scheduled for the coming week.

Boxed beef closed higher on moderate to good demand for light offerings. Choice was up $.65 at $213.15 and Select was $1.81 higher at $209.45. The estimated cattle slaughter of 116,000 head was down 1,000 on the week and 3,000 on the year.

At the Lexington Livestock Market in Nebraska Friday, feeder steers and heifers weighing more than 600 pounds were steady to $2 higher. The USDA says demand was good from the buyers in attendance, with additional activity from the internet. Receipts were down on both the week and the year. 64% of the run were steers and nearly 80% of the run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds sold at $153 to $162.35 and 700 to 800-pound steers ranged from $146 to $153. Medium and Large 1 feeder heifers weighing 600 to 700 pounds brought $136.50 to $143 and 700 to 750-pound heifers were reported at $135.50 to $138.85.

In Iowa, the USDA says hay prices were firm to higher, but with an uptrend on some lower quality supplies as supreme availability remained limited. Small squares of supreme quality alfalfa ranged from $280 to $360. Premium small squares of alfalfa and grass sold at $200 to $245 with large squares at $200 to $215. Small squares of good quality alfalfa and hay brought $175 to $200 with large squares at $175 to $200 and large rounds at $170 to $200. Good quality large squares of grass were reported at $175 to $200.

For Missouri, hay movement was an issue because of mud after a heavy, wet snowfall with steady prices and moderate to good demand for a light to moderate supply. Large rounds of supreme quality alfalfa sold at $180 to $225 with premium at $150 to $200 and good quality alfalfa at $120 to $160. Large rounds of good quality mixed grass hay ranged from $100 to $150 with fair to good quality at $75 to $125. Large rounds of food quality Bromegrass brought $120 to $150.

In Nebraska, alfalfa hay, grass hay, ground and delivered hay, and dehydrated pellets were steady. The USDA says demand was moderate to good. For eastern/central Nebraska, premium large squares of alfalfa sold at $180 with good quality at $140 to $160 and good large rounds at $100 to $115. Premium large rounds of alfalfa/orchard mix brought $120. Premium large rounds of grass hay ranged from $100 to $105 with good large rounds at $85 to $90. For the Platte Valley, good quality round bales of alfalfa were reported at $100 to $110 with cornstalk bales at $60 to $65. Ground and delivered alfalfa sold at $140 to $145, with ground and delivered alfalfa/stubble mix at $130 to $135 and ground and delivered cornstalks at $95 to $110. 17% protein dehydrated alfalfa pellets brought $230 and 15% or higher protein sun-cured alfalfa pellets sold at $210. For western Nebraska, premium large squares of alfalfa were reported at $175 to $180, with good quality at $150 to $160 and fair at $135 to $140. Good large rounds of alfalfa ranged from $130 to $145. Good to premium large squares of alfalfa and orchard grass brought $180 to $200. Ground and delivered alfalfa sold at $150 to $155.

For South Dakota, alfalfa and grass were steady with lower undertones with good demand and a declining high-quality inventory. For the East River, supreme large squares of alfalfa sold at $225 with premium large rounds at $170 and good large rounds at $150 to $160. 15% protein sun-cured alfalfa pellets brought $205 with 17% at $215. Large rounds of fairly quality grass ranged from $120 to $130 with good large rounds of alfalfa and grass at $150. Large rounds of cornstalks were reported at $50 to $60 with large squares of straw at $120 to $140.

Lean hog futures were supported by oversold signals and commercial buying. Additional support came from expectations of delayed movement and lower weights because of winter weather. Gains in February were limited by spread unwinding between that contract and April. February was $.37 higher at $61.22 and April was up $1.65 at $66.27.

Cash hogs were firm to modestly higher with light to moderate closing negotiated numbers at the major direct markets. Buyers worked to move the needed numbers ahead of another weekend storm, which was expected to disrupt business Saturday, at least in some areas. The USDA Friday projected Saturday’s kill at 152,000 head. The coming week will likely get off to a slow start because of the Dr. Martin Luther King Jr. holiday. Both sides are also watching margins and wholesale business, with ample market ready supplies and more pork hitting the market.

Pork closed $.13 lower at $69.97. Butts, hams, picnics, and bellies were lower, while ribs were firm and loins were sharply higher. The estimated hog slaughter of 460,000 head was down 15,000 on the week, but up 2,000 on the year.

Iowa/Southern Minnesota barrows and gilts closed $.19 higher at $46 to $53 for an average of $52.68, the Western Cornbelt was up $.52 at $46 to $53 with an average of $52.53, and national direct business was $.41 higher at $46 to $53 for an average of $51.81. The butcher hog markets in Dorchester, Wisconsin and Garnavillo, Iowa were closed. Illinois direct sows were steady at $16 to $31 on light to moderate demand for moderate offerings. Barrows and gilts were steady at $30 to $36 with moderate demand and offerings. Boars ranged from $6 to $14.

The USDA says early weaned pigs were $3 lower and all feeder pigs were $2 lower. Demand was moderate for moderate offerings. On early weaned pigs, the total composite formula range was $37 to $50.94, with a weighted average of $45.88, and the total composite cash range was $49 to $70, with an average of $60.86, for a weighted average on all early weaned pigs of $53.98. The total composite cash range for feeder pigs was $60 to $76 for an average of $69.81.