Market News

Hogs, cattle futures slide into the weekend

At the Chicago Mercantile Exchange, live cattle futures ended the day lower in limited trade volume on the weak cash trade and demand concerns.  Feeder cattle futures closed lower on the same factors with added pressure from the day’s higher move in corn.  October live cattle closed $.47 lower at $98.05 and December live cattle closed $.75 lower at $103.52.  September feeder cattle closed $.92 lower at $132.37 and October feeder cattle closed $.90 lower at $132.85. 

There was a very light direct cash cattle trade to wrap up the week at $106 live.  That’s steady with Thursday’s decline, but $7 lower than the previous week’s weighted average.  The week saw a light to moderate trade develop with both live and dressed deals significantly lower than last week’s weighted averages in those areas. 

In Missouri last week, receipts were down from the prior week and on the year.  Compared to the prior week’s sales, feeder steers were $5 to mostly $10 lower and feeder heifers sold fully $10 to spots of $13 lower.  The supply of feeder steers was light and some barns canceled sales due to poor marketing conditions and light demand.  Feeder supply included 49 percent steers and 55 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 698 pounds brought $127 to $160.50 and feeder steers 750 to 793 pounds brought $120 to $147.75.  Medium and Large 1 feeder heifers 605 to 649 pounds brought $110 to $151.50 and feeder heifers 650 to 698 pounds brought $116 to $140. 

At the South Dakota Hay Market, compared to last week alfalfa and grass were generally steady on a light volume week.  The USDA says demand was still good for high quality hay of all classes and also for straw, but demand was moderate for lower qualities, especially the rougher grinding type hay.  In the East River area, Alfalfa premium large squares brought $210; fair to good large squares brought $160; fair large rounds brought $125.  Sun-cured alfalfa pellets 15 percent protein brought $245; 17 percent protein brought $250; and alfalfa meal 17 percent protein brought $255.  Grass good small squares brought $5 per bale.  Alfalfa/grass mix good large squares brought $160 and small squares brought $6 per bale.  Rye grass hay large rounds brought $!20.  Straw large rounds, old crop brought $120; large squares brought $55 per bale.    No sales were reported this week in West River. 

Boxed beef closed sharply higher on good demand and moderate offerings.  Choice up $2.57 at $238.69 and Select closed $2.59 higher at $213.26.  Estimated cattle slaughter is 114,000 head – down 4,000 on the week and the year.  Saturday’s estimated kill is 74,000 head – up 26,000 on the week and 7,000 on the year. 

Lean hog futures closed sharply lower on concerns about the long-term supply and demand picture and the weak wholesale values during the session.  October lean hogs closed $3 lower at $62 and December lean hogs closed $2.97 lower at $60.77. 

Cash hogs closed mixed with moderate negotiated purchase totals.  The supply and demand situation continues to drive the market.  There is hope that demand will improve significantly, but that has yet to be realized and that is keeping hog prices down.  The heavy supply of ready barrows and gilts and the ongoing very large slaughter runs are adding more pork to a market that is already saturated.  Barrows and gilts at the Iowa/Southern Minnesota closed $.35 higher for a weighted average of $72.87; the Western Corn Belt closed $.12 higher for a weighted average of $71.73; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.49 lower with a base range of $59 to $74 for a weighted average of $69.65. 

The USDA says early-weaned pigs and all feeder pigs were $1 to $2 per head higher.  The demand was light to moderate for moderate offerings.  Receipts included 45 percent formulated prices.  Total composite formula range was $22.22 to $47.98 for a weighted average of $39.95.  Total composite cash range $12 to $31 for a weighted average of $21.89.  All early-weaned pigs were $30.09 and all feeder pigs were $38. 

Butcher hog prices at the Midwest cash markets are steady at $50 in Dorchester, Wisconsin.  At Illinois, slaughter sow prices are steady at $33 to $48 with moderate demand for light offerings.  Barrow and gilt prices were steady at $41 to $49 with moderate demand for moderate offerings. 

Pork values ended the day lower – down $1.97 at $86.26.  Bellies and hams were sharply lower.  Picnics were weak.  Butts were steady.  Loins were firm and ribs closed higher.  Estimated hog slaughter is 454,000 head – up 3,000 on the week and 10,000 on the year.  Saturday’s estimated kill is 143,000 head – up 92,000 on the week and down 14,000 on the year.