Market News

Cattle futures mostly lower, still waiting for direct cash

Chicago Mercantile Exchange live cattle futures were mostly lower, closing before the start of the week’s widespread direct cash business. February was up $.50 at $126.62 and April was down $.20 at $127.17.

Feeder cattle were lower ahead of widespread direct trade. March was $1.47 lower at $142.60 and April was down $1.27 at $145.22.

Direct cash cattle markets stayed quiet well into Friday afternoon. Some very light trade was reported at $127 live in Illinois and $199 dressed in Iowa and Nebraska. Weather probably played a part in some of the major feeding areas, along with generally poor buying interest from packers. Asking prices were $126 to $127 live and $202 to $204 dressed, with bids of $122 live and $200 dressed. The USDA’s final weekly totals will be out Tuesday, delayed a day by Presidents’ Day.

Boxed beef closed higher with moderate to fairly good demand for moderate offerings. Choice was up $.78 at $216.85 and Select was $.58 higher at $210.99. The estimated cattle slaughter of 111,000 head was down 4,000 on the week and 3,000 on the year.

For the week in Oklahoma, feeder steers were mostly steady to $2 higher and feeder heifers were steady to $4 higher. Steer calves were steady to $6 higher and heifer calves were up $1 to $6. The USDA says demand was good for all classes, with 64% of the supply weighing more than 600 pounds and 60% of the offering steers. Receipts of 25,603 head were down on the week and the year. Medium and Large 1 feeder steers weighing 700 to 800 pounds were reported at $123.50 to $149.50 and 800 to 900-pound steers ranged from $130.75 to $141.75. Medium and Large 1 feeder heifers weighing 500 to 600 pounds sold at $130 to $157.50 and 600 to 700-pound heifers brought $124 to $144.50.

The USDA says high quality hay supplies in Iowa remained in short supply. Small squares of supreme quality alfalfa sold at $320 to $360 with large squares of premium at $260 to $280. Large rounds of fair quality alfalfa and grass brought $125 to $185. Good large squares of grass ranged from $195 to $210, with fair large rounds at $175 to $185. Good rounds of oat hay were reported at $175 to $190 with fair quality at $125 to $175. Small squares of oat straw sold at $225 to $275, with small squares of wheat straw at $240 to $280 and large rounds of rye straw at $100 to $110.

For Missouri, hay prices were steady for a light to moderate supply with moderate to good demand. Large rounds of supreme quality alfalfa sold at $200 to $250 with premium at $175 to $200 and good quality at $120 to $160. Large rounds of good quality mixed grass hay ranged from $100 to $150 with fair to good at $75 to $125. Large rounds of good quality bromegrass was reported at $120 to $150.

In Nebraska, alfalfa hay, grass hay, ground and delivered hay, and dehydrated pellets were steady. The USDA says demand was mostly light to moderate. For eastern and central parts of the state, premium large squares of alfalfa sold at $180, with fair at $100, and good large rounds at $95 to $105 or $130 to $140 delivered. Premium large rounds of grass hay brought $100 to $105 with good large rounds at $80 to $90 and premium small squares at $160 to $170. Large rounds of oat hay were pegged at $90, with straw in large squares at $80 and cane in large rounds at $75. 17% protein dehydrated alfalfa pellets brought $290, 17% protein sun-cured alfalfa pellets at $270 and 15% protein at $250. For the Platte Valley area, good large squares of alfalfa were reported at $140 with good large round bales at $100 to $110. Cane in large rounds sold at $75 to $80 and cornstalk bales brought $60 to $65. Ground and delivered alfalfa ranged from $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 pellets were pegged at $230 with 15% or better protein sun-cured alfalfa pellets at $210. For western areas of Nebraska, premium large squares of alfalfa ranged from $175 to $180 with good large squares at $160 and good large rounds at $132.50. Premium large squares of grass sold at $230 with straw in large squares at $80. Ground and delivered hay brought $150 to $155 with 15% protein sun-cured alfalfa pellets at $235.

For South Dakota, alfalfa and grass were steady, with very good demand and tight supplies of high-quality hay. On the East River, supreme quality large squares of alfalfa sold at $200 to $230, with premium large rounds at $170 to $190 and good large rounds at $140 to $150. 15% protein sun-cured alfalfa pellets brought $205 and 17% protein was pegged at $215, with 17% protein alfalfa meal at $225. Good large rounds of grass were reported at $130 to $150 and premium small squares of alfalfa and grass mixed sold at $175, with good large rounds at $35 to $150. Large rounds of straw were pegged at $100 with large squares at $120 to $130. Large rounds of oat hay brought $100 and corn stalks sold at $50 to $60 per ton.

Lean hog futures were higher on commercial buying and the higher midday move in pork. April was $.82 higher at $59.52 and June was up $.25 at $76.72.

Cash hogs were steady to sharply lower, with very light to moderate closing negotiated numbers for the major direct markets. Market ready supplies remain ample, but runs were probably limited in parts of the Midwest and Plains by another round of winter weather and wholesale business continues to be a question mark. Saturday’s kill is projected at 218,000 head and the upcoming week will get off to a slow start with Presidents’ Day. More trade negotiations with China are expected to happen in the coming week. The industry is watching the spread of African Swine Fever and waiting to see what impact it has on demand.

Pork closed $.27 higher. Ribs and bellies were sharply higher, while picnics were firm. Loins, butts, and hams were modestly lower. The estimated hog slaughter of 465,000 head was up 23,000 on both the week and the year.

Iowa/Southern Minnesota direct barrows and gilts closed $2.28 lower at $44.50 to $48.25 for a weighted average of $46.73, the Western Cornbelt was down $2.44 at $44.50 to $48.25 with an average of $46.47, and national direct business was $.21 lower at $44.50 to $48.78 for an average of $48.51. Butcher hogs at the Midwest cash markets were steady at $30 to $34. Illinois direct sows were steady to $2 higher at $20 to $39 on moderate demand and offerings. Barrows and gilts were steady at $26 to $35, also on moderate demand and offerings. Boars ranged from $5 to $16.

The USDA says early weaned pigs were down $1 and all feeder pigs were steady to weak, with moderate demand for moderate offerings. The total composite formula range for early weaned pigs was $37 to $58 with a weighted average of $45.15 and the total composite cash range was $45 to $61 with an average of $55.15, for a weighted average of $50.52 on all early weaned pigs. The total composite cash range on feeder pigs was $60 to $78 with an average of $69.58.