Market News

Cattle, hog futures end week lower

At the Chicago Mercantile Exchange, live cattle futures closed lower on weak wholesale values and a less than stellar cash trade.  Feeder cattle were lower on the same factors.  The Cattle on Feed report was neutral to slightly bearish.  While the report showed the largest June 1 inventory since the reports began in 1996, it did come toward the upper end of pre-report estimates.  August live cattle closed $1.72 lower at $102.22 and October live cattle closed $1.42 lower at $104.15.  August feeder cattle closed $1.02 lower at $133.67 and September feeder cattle closed $1.32 lower at $134.05. 

Direct cash cattle trade finished the week quietly with just a handful of clean-up business reported.  Deals in Kansas were at $108 live with dressed business in Nebraska and Iowa at $176 to $182.  A moderate trade took place in the South on Thursday at mostly $110, which is generally $1 to $2 lower than last week’s weighted averages.  Dressed deals were mostly at $180 to $181, roughly $3 to $4 lower than last week’s weighted average basis in Nebraska. 

At Missouri last week, receipts were up from the previous week and on the year.  Compared to the prior week’s sale, feeder steers under 700 pounds were steady to $3 higher, steers over 700 pounds were unevenly steady and feeder heifers were mostly steady.  Some six weights were $2 higher.  Several auctions saw moderate to heavy supplies with big drafts of high-quality cattle.  Overall the supply of feeder was moderate even with some locally heavy offerings.  Demand was moderate to good.  Feeder supply included 53 percent steers and 41 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 599 pounds brought $140 to $178 and feeder steers 600 to 648 pounds brought $133 to $167.25.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $128 to $159 and feeder heifers 600 to 649 pounds brought $125 to $155.50. 

At the Iowa Hay Market, new crop hay continues to be marketed.  The first crop hay is showing a wide variety of quality depending on where it’s being cut.  Much of the variation is related to rainfall – either pre-harvest or during and after cutting.  Prices have been strong and livestock producers have been willing to pay higher prices for both hay and straw.  All prices are new crop hay unless otherwise noted.  Alfalfa Supreme small squares brought $280 to $315.  Alfalfa/Grass Premium Large squares brought $140 to $170 and small squares brought $200 to $240.  Good small squares brought $170 and Good quality large squares brought $140 to $155.  Fair large rounds brought $120 to $145.  Grass hay, Good quality small squares brought $140 to $160 and large squares brought $135 to $150.  Utility large rounds brought $75 to $100.  Old crop wheat straw, small squares brought $200 to $275.  Old crop small squares of Oat straw brought $200 to $240.  New crop Rye small squares brought $150 to $220. 

Boxed beef closed lower on light demand and moderate offerings.  Choice closed $.90 lower at $219.82 and Select closed $1.93 lower at $199.55.  The Choice/Select spread closed at $20.27.    Estimated cattle slaughter is 118,000 head – even on the week and the year.  Saturday’s estimated kill is 62,000 head – even on the week and down 6,000 on the year. 

Lean hog futures closed limit down in the nearby contracts on follow through selling with additional pressure from heavy supplies and uncertain demand.  July lean hogs closed $3.00 lower at $76.25 and August lean hogs closed $3.00 lower at $77.90. 

Cash hogs ended the day weak with moderate negotiated purchase totals.  Heavy supplies has the market very tentative right now.  Slaughter runs have been at record or near record levels adding more pork to an already saturated market.  Today’s Cold Storage report showed pork stocks were at nearly 630 million pounds, up 1% on the year, when many analysts had been expecting at least a slight decline, as the industry continues to see high slaughter levels, slow export demand, and basically steady domestic demand.  There’s still hope demand will increase eventually as the US heads back to the table with China.

Barrows and gilts at the National Daily Direct closed $.69 lower with a range of $65 to $76 for a weighted average of $74.03.  Prices at the regional direct markets were not reported due to confidentiality. 

The USDA says early weaned pigs were steady with the best market test early in the week.  All feeder pigs were $9 per head lower.  Demand was light to moderate for moderate offerings and receipts included 58 percent formulated prices.  Total composite formula range was $37 to $50.23 for a weighted average of $43.06 and total composite cash range was $27 to $43 for a weighted average price of $36.55.  The weighted average for all early weaned pigs was $40.58 and the average for all feeder pigs was $54.04. 

At Illinois, slaughter sow prices are weak at $24 to $38 with light to moderate demand for light to moderate offerings.  Barrow and gilt prices were steady at $47 to $51 with moderate demand for moderate offerings. 

Pork values closed weak – down $.71 at $76.73.  Picnics, ribs, and butts were lower.  Hams and loins closed weak.  Bellies closed firm. Estimated hog slaughter is 462,000 head – down 6,000 on the week but up 43,000 on the year.  Saturday’s estimated kill is 86,000 head – up 19,000 on the week and 86,000 on the year.