Market News

Hog futures down on cash pressure

Chicago Mercantile Exchange live cattle futures were mostly lower on profit taking and technical selling, along with spread trade and position squaring ahead of the USDA’s Cattle on Feed report. June was up $.37 at $111.17 and August was down $.20 at $107.95.

Feeder cattle were mostly lower on the same factors as the live pit. August was $.20 higher at $143.22 and September was $.12 lower at $143.87.

Direct cash cattle markets were at a standstill, with business essentially wrapped up after the light to active trade reported Wednesday. The bulk of the week’s activity was at $114 to $116 on the live basis in the South and $184 to $185 dressed in the North, about steady to $2 lower than the previous week’s weighted averages. Asking prices for what was left on the showlist were around $117 to $118 live. The USDA’s Cattle on Feed report looks neutral to supportive, especially for deferred CME contracts, because of the lower than anticipated placements total.

Boxed beef closed higher on moderate to good demand for moderate offerings. Choice was up $.85 at $221.64 and Select was $1.94 higher at $208.47. The estimated cattle slaughter of 119,000 head was up 2,000 on the week but down 2,000 on the year.

In South Dakota, feeder steers weighing less than 850 pounds were steady to $2 higher, with instances of $6 to $7 higher on the 600 to 650-pound category, while steers weighing more than 850 pounds were $2 to $5 lower. Feeder heifers were unevenly steady. The USDA says demand was uneven, very good for grass bound cattle and active for lighter weights. Medium and Large 1 feeder steers weighing 800 to 900 pounds ranged from $129.50 to $144.25 and 900 to 1,000-pound steers brought $122.75 to $140. Medium and Large 1 feeder heifers weighing 700 to 800 pounds sold at $124.50 to $141.25. 800 to 900-pound heifers were reported at $119.25 to $128.30.

The USDA says hay supplies in Iowa remained very tight, with the first cutting delayed by weather. Supreme small squares of alfalfa sold at $320, with supreme large squares at $250 to $340 and premium large rounds at $180. Small squares of alfalfa and grass ranged from $210 to $250 with large squares at $240 to $260. Premium large squares of grass were reported at $310 with good large rounds at $210 to $245.

The weekly numbers for Missouri were not released following a tornado in Jefferson City, where the USDA offices are located.

In Nebraska, all reported forages were steady with moderate demand for baled hay and very good demand for alfalfa pellets. For eastern and central Nebraska, good large squares of alfalfa sold at $160 to $200 with good large rounds at $115. Premium large rounds of grass hay ranged $100 to $110 with good large rounds at $85 to $95 and premium small squares at $160 to $170. For the Platte Valley, good large rounds of alfalfa were pegged at $105. Ground and delivered alfalfa brought $140 to $160 with ground and delivered alfalfa and stubble mix at $130 to $145. 15% protein sun-cured alfalfa pellets were pegged at $220 with 17% dehydrated pellets at $240. For western Nebraska, good large squares of alfalfa sold at $160 with good large rounds at $130 to $140 or $150 to $160 delivered. Ground and delivered alfalfa came out at 153 to $158. 15% protein sun-cured alfalfa pellets brought $255.

For South Dakota, hay prices were steady with few sales reported and very good demand as weather continues to have a negative effect on conditions and movement. In the East River region, premium large squares of alfalfa sold at $200 to $210 and good large squares brought $180 to $190. 15% protein sun-cured alfalfa pellets were pegged at $210 with 17% alfalfa meal at $255. Good large rounds of grass ranged from $140 to $150 with good large rounds of alfalfa and grass mix at $150 to $175. No sales were reported in the West River region.

Lean hog futures were sharply lower on the lower cash during the session, technical selling, and demand uncertainties. August was $3.00 lower at $86.42 and July was also limit down at $87.95.

Cash hogs were sharply lower with relatively light closing negotiated runs for the major direct markets. Buyers were able to save money, trying to improve margins while still moving the needed supplies. The major directs only added a few hundred head between the open and the close. Domestic demand is good, but there’s plenty of pork available and grilling season is off to a slow start in many areas because of weather. Saturday’s kill is projected at 40,000 head.

Pork closed $.65 higher at $83.27. Ribs jumped $10.91, while loins and picnics were also up sharply. Butts, hams, and bellies were modestly to sharply lower. The estimated hog slaughter of 403,000 head was down 52,000 on the week and 34,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $4.19 lower at $76.75 to $80 for a weighted average of $78.02, the Western Corn Belt was down $4.09 at $72 to $80 with an average of $77.51, and national direct business was $2.51 lower at $72 to $80 for an average of $77.97. The Midwest butcher hog markets are closed. Illinois direct sows were weak at $38 to $58 on light demand for light offerings. Barrows and gilts were weak at $50 to $58 with moderate demand and offerings. Boars ranged from $10 to $30.

The USDA say early weaned pigs were $3 lower and all feeder pigs were down $6. Demand was light for moderate offerings. On early weaned pigs, the total composite formula range was $37 to $59.53 with an average of $47.23 and the total composite cash range was $43 to $60 with an average of $52.47, for a total weighted average of $48.96. The total composite cash range for feeder pigs was $72 to $81 for an average of $75.48.