Market News

Stronger cash trade pushes live cattle higher

At the Chicago Mercantile Exchange, live cattle ended the day higher with support from stronger wholesale values and strengthening cash trade.  Feeder cattle were mostly lower, pressured by the day’s higher move in corn.  October live cattle closed $.72 higher at $109.45 and December live cattle closed $.72 higher at $112.15.  October feeder cattle closed $.20 lower at $144.10 and November feeder cattle closed $.12 higher at $144.25.

Headed into the end of the day, a light to moderate direct cash cattle trade was reported in parts of the North.  Deals were at $172 dressed – that’s $2 higher than the prior week’s weighted average basis.  There are a handful of live deals reported in the North at $109, about $2 higher than the previous week’s weighted average basis.  Asking prices held at $109 to $110 live and $175 plus, dressed and there were zero reported sales in the South at the end of the day.   

In Missouri this past week, receipts were down from the prior week, but up on the year.  Compared to the previous week’s sales, feeder steers and heifers sold mostly steady to $5 higher, with sharp discounts being applied to unweaned calves with no solid health programs.  The supply of feeders was moderate.  The offerings were made up of mostly calves as true yearlings are pretty scarce.  Feeder supply included 53 percent steers and 48 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $126 to $162 and feeder steers 802 to 849 pounds brought $130 to $153.25.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $119 to $154.50 and feeder heifers 702 to 747 pounds brought $118 to $145.60. 

At the Nebraska Hay market, compared to last week all reported forages sold steady.  The USDA says demand was light to moderate with good demand noted for ground and delivered hay, especially in place of the state where they have been expecting snow.  In Eastern/Central Nebraska, Alfalfa, good large rounds brought $100 to $105 with spots of $115.  Prairie Hay, premium large rounds brought $125 to $130; good large rounds brought $95 to $110; fair large rounds brought $75 to $85.  Premium small square brought $170 to $180.  Dehy alfalfa pellets 17 percent protein brought $300 and sun-cured alfalfa 15 percent protein brought $260.  In the Platte Valley area of Nebraska, Alfalfa Good large rounds $105 to $110 with a few at $115.  Grass hay, Good large rounds brought $115; fair large rounds brought $90.  Dehy alfalfa pellets 17 percent protein brought $275 and Sun-cure alfalfa 15 percent protein brought $240.  In Western Nebraska, Alfalfa supreme large squares brought $195 to $200; premium large squares brought $180; good large squares brought $160 to $165.  Ground and delivered alfalfa brought $153 to $158 and sun-cured alfalfa pellets 15 percent protein brought $255. 

Boxed beef closed steady on Choice and higher on Select on moderate to fairly good demand and light offerings.  Choice closed $.03 higher at $215.66 and Select closed $2.02 higher at $188.68.   Estimated cattle slaughter is 117,000 head – up 9,000 on the week and 3,000 on the year.  Saturday’s estimated kill is 61,000 head, down 3,000 on the week and up 1,000 on the year. 

Lean hog futures closed mostly higher on sharply higher wholesale values during the session, the recent strength in the cash trade, and hopes that some positive news would surface out of trade talks with China.  October lean hogs closed $.52 higher at $62.92 and December lean hogs closed $1.12 higher at $69.60. 

Cash hogs closed firm with moderate negotiated purchase totals.  All signs are pointing to some positive news coming out of the trade talks with China.  Those wrapped up on Friday.  The US pork sector could see a big boost to demand on the global market and that is exactly what it needs to boost prices higher.  However, the extremely large domestic supply picture is keeping prices in check.  Continued record large slaughter runs combined with more than ample supply of ready barrows and gilts adds even more pressure to prices.  Barrows and gilts at the Iowa/Southern closed $.68 higher for a weighted average of $57.12; the Western Corn Belt closed $.74 higher for a weighted average of $57.10; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.69 higher with a base range of $52 to $59 for a weighted average of $56.27. 

The USDA says early-weaned pigs were $5 per head lower and all feeder pigs were steady.  Demand was light to moderate on moderate offerings and receipts included 48 percent formulated prices.  The total composite formula range was $33.46 to $49.85 for a weighted average of $44.47.  Total composite cash range was $15 to $36 for a weighted average of $26.  The average for all early-weaned pigs was $35.78 and the average for 40-pound feeder pigs was $42.58. 

Butcher hog prices at the Midwest cash markets are steady at $36 to $39.  At Illinois, slaughter sow prices were steady at $18 to $30 with moderate to good demand or light offerings.  Receipts were down on the week and up on the year.  Barrow and gilt prices were $1 higher at $34 to $39 with good demand for moderate offerings. 

Pork values closed firm – up $.61 at $77.52.  Butts and hams closed higher.  Loins closed firm.  Picnics steady.  Bellies and ribs were weak to lower.  Estimated hog slaughter is 488,000 head, up 1,000 on the week and up 29,000 on the year.  Saturday’s estimated kill is 285,000 head, up 60,000 on the week and 116,000 on the year.