Market News

Cattle, hog futures lower on disappointing export sales

At the Chicago Mercantile Exchange, live cattle closed lower on technical pressure, weak export sale numbers, and ahead of widespread direct cash business.  Feeder cattle closed lower on the same factors.  October live cattle closed $1.92 lower at $110.47 and December live cattle closed $.75 lower at $113.62.  October feeder cattle closed $.70 lower at $143.50 and November feeder cattle closed $1.47 lower at $142.85. 

Direct cash cattle trade finally developed Friday afternoon.  A light to moderate trade has been reported at $108 live in Kansas and Texas and in Nebraska at mostly $173 dressed, with some for delayed delivery at $175. 

In Missouri last week, receipts were up on the week and the year.  Compared to the prior week’s sales – calves sold steady to $3 higher and yearlings were $2 to $5 higher.  There was some weakness noted with lower markets at a few auctions mid to late week.  The supply of feeders overall was moderate to heavy and the USDA says demand was variable and was heavily dependent on each lot’s health risk.  There were deep discounts for calves that didn’t come off an adequate health program.  Feeder supply included 53 percent steers and 53 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 550 to 598 pounds brought $125 to $169 and feeder steers 701 to 747 pounds brought $125 to $157.25.  Medium and Large 1 feeder heifers 600 to 649 pounds brought $112 to $152 and feeder heifers 700 to 749 pounds brought $106.50 to $149.25. 

In Missouri, hay movement has been slow.  Listings have increased over the last week with a lot of new hay being offered as several producers try to move some surplus inventory.  Hay supplies are moderate, while demand is light, and prices are steady to weak.  Supreme quality alfalfa brought $185 to $225, small squares brought $7 to $9 per bale.  Premium quality alfalfa brought $170 to $200.  Good quality alfalfa brought $120 to $160 with small squares bringing $5 to $7 per bale.  Fair quality alfalfa brought $100 to $125.  Good quality mixed grass hay brought $80 to $120 and small square brought $6 to $8 per bale (some alfalfa/grass mix).  Fair to good quality mixed grass hay brought $60 to $80 and smalls squares brought $3 to $6 per bale.  Good quality bromegrass brought $80 to $120.  Fair to good quality bromegrass brought $50 to $80.  Wheat straw brought $3 to $6 per small square bale. 

Boxed beef closed steady to firm on light to moderate demand and offerings.  Choice closed $.07 lower at $218.04 and Select closed $.44 higher at $193.04.  The Choice/Select spread closed at $25. Estimated cattle slaughter is 110,000 head – down 7,000 on the week and 6,000 on the year.  Saturday’s estimated kill is 70,000 head, up 9,000 on the week and up 25,000 on the year. 

Lean hog futures ended the day lower on follow-through selling, demand uncertainties, and a disappointing export sales report from the USDA.  December lean hogs closed $.20 lower at $67.95 and February lean hogs closed $.17 lower at $77.47. 

Cash hogs closed lower with light to moderate negotiated purchase totals.  Packers had moved their desired numbers already this week.  The industry had been waiting to see signs of significant demand increases and the USDA’s latest Export Sales report was not exactly what they were expecting.  The market is bringing a record number of hogs online and the heavy supply combined with demand uncertainties is going to cause a lot of volatility in the market. Barrows and gilts at Iowa/Southern Minnesota had no comparison but closed with a weighted average of $55.27; the Western Corn Belt closed $3.81 lower for a weighted average of $55.57; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.94 lower with a base range of $51 to $60.99 for a weighted average of $56.86. 

Compared to last week, the USDA says early-weaned pigs and all feeder pigs were $2 per head higher.  Demand was good to moderate on moderate offerings.  Receipts included 32 percent formulated prices.  The total composite formula range was $27.66 to $49.69 for an average of $44.26.  Total composite cash range was $18 to $36 for a weighted average of $28.59.  The average for all early-weaned pigs was $34.11 and the average for all feeder pigs was $44.47. 

Butcher hog prices at the Midwest cash markets are $2 higher at $44. At Illinois, slaughter sow prices are steady at $25 to $38 with good demand for light offerings.  Receipts were down on the week and up on the year.  Barrow and gilt prices were steady at $36 to $41 with good demand for moderate offerings. 

Pork values closed firm – up $.75 at $77.03.  Ribs closed sharply higher.  Butts, loins, bellies, and hams were all firm to higher.  Picnics closed weak.  Estimated hog slaughter is 483,000 head, down 5,000 on the week and up 17,000 on the year.  Saturday’s estimated kill is 281,000 head, up 26,000 on the week and up 44,000 on the year.