Market News

Cattle futures end the week on a high note

At the Chicago Mercantile Exchange, cattle futures ended the day higher on the news that Japan has lifted import restrictions on US beef and technical momentum.  June live cattle closed $.80 higher at $111.27 and August live cattle closed $.97 higher at $108.92.  August feeder cattle closed $2.17 higher at $145.50 and September feeder cattle closed $2.47 higher at $146.70. 

Direct cash cattle finished the week quiet after the light to moderate trade developed earlier in the week.  Deals in the North were at $184 to $186, mostly $185 which is about $7 lower than last week’s weighted average basis in Nebraska.  Live deals were at mostly $117, $3 lower than last week. 

In Missouri this past week, receipts were up from the most recent reporting and on the year.  Compared to last week, steers traded steady to $2 lower, except some late week sales where there were spots of $2 to $5 higher on steer calves.  Heifers were $2 to $4 lower.  There were several reports that noted a lack of yearlings again this week.  The USDA says demand and supply were moderate.  Feeder supply included 52 percent steers and 37 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 548 pounds brought $152 to $182.50 and feeder steers 550 to 599 pounds brought $145 to $177.  Medium and Large 1 feeder heifers 500 to 548 pounds brought $130 to $159 and feeder heifers 600 to 648 pounds brought $120 to $147. 

At the Iowa Hay Market, offerings were tighter this past week and prices were higher even though the quality was lower.  Supreme alfalfa could only be found in small squares and that supply, was tight.  The supply of large squares was limited.  More wet weather moved in at the end of the week.  While the weather promotes growth, it does create challenges getting the first cutting accomplished.  Alfalfa supreme small squares brought $260 to $300.  Alfalfa/Grass premium small squares brought $335, good small squares brought $260 to $320 and large squares brought $235 to $265.  Grass fair large rounds brought $170 to $200.  Small square oat straw brought $200 to $270 and small square wheat straw brought $220 to $250. 

Boxed beef closed firm to higher on moderate to fairly good demand and moderate offerings.  Choice is $.75 higher at $220.31 and Select is $.40 higher at $208.28.  The Choice/Select spread closed at $12.03.  Estimated cattle slaughter is 117,000 head – down 1,000 on the week and 3,000 on the year.  Saturday’s estimated kill is 59,000 head – down 13,000 on the week and 11,000 on the year. 

Lean hog futures ended the day firm on spread adjustments in light trade volume.  June lean hogs closed $.15 higher at $92.37 and July lean hogs closed $.60 higher at $93. 

Cash hogs ended the day steady to weak with moderate negotiated purchase totals.  The supply of market-ready hogs remains ample, and the demand picture overall is still quite shaky.  There’s been some good and bad news when it comes the trade situation – on Friday the Trump Administration announced it would eliminate the steel and aluminum tariffs.  That’s been one of the biggest roadblocks in getting the new USMCA deal ratified.  Mexico is expected to drop its retaliatory tariffs on hams and that’s good news for the US pork sector.  However, it doesn’t appear the US is any closer to getting a trade agreement with China completed and that continues to leave a lot of questions unanswered when it comes to demand. Barrows and gilts at the Iowa/Southern Minnesota closed $.72 lower with a range of $79.75 to $85 for a weighted average price of $83.76; the Western Corn Belt closed $.55 lower with a range of $72 to $85 for a weighted average price of $82.81; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.10 higher with a range of $72 to $85 for a weighted average price of $81.18.

The USDA says early weaned pigs were $2 per head lower and all feeder pigs were $7 per head lower.  Receipts included 43 percent formulated prices.  Demand was moderate for moderate offerings.  Total composite formula range was $37 to $66.36 with a weighted average of $49.68.  Total composite cash range was $43 to $65 for a weighted average of $55.53.  The weighted average for early weaned pigs is $52.67 and the weighted average for all feeder pigs is $82.06. 

The Midwest cash markets are closed today so no prices are available.  At Illinois, slaughter sow prices are steady at $50 to $64 with good demand for moderate offerings.  Receipts are up on the week and the year.  Barrows and gilts are steady at $52 to $58 with good demand for moderate offerings. 

Pork values closed $.86 lower at $85.27.  Picnics, loins, bellies, and butts were lower.  Hams were firm and ribs closed sharply higher.    Estimated hog slaughter is 455,000 head – up 16,000 on the week and 18,000 on the year.  Saturday’s estimated kill is 71,000 head – that’s up 62,000 on the week and down 13,000 on the year.