Market News

Cattle futures mixed, mostly lower ahead of On Feed numbers

At the Chicago Mercantile Exchange, live cattle ended the day mixed, mostly lower on spread adjustment ahead of Friday’s Cattle on Feed report and steady to weak cash business this week.  Feeder cattle were lower on the same factors.  February live cattle closed $.17 higher at $124.85 and April live cattle closed $.12 higher at $124.30.  January feeder cattle closed $.92 lower at $141.85 and March feeder cattle closed $.85 lower at $139.67. 

A fairly quiet end to the week following the light to moderate rounds of trade developed on both Wednesday and Thursday.  There was some cleanup business in the North at $197 to $199, mostly steady to $1 lower than the prior week’s averages.  The week’s business was at mostly $124 live in the South, fully steady with the prior week.  Dressed business was mostly $198 to $199, steady to $1 lower than the previous week’s weighted average basis.     

In Missouri, compared to last week feeders under 600 pounds were steady to $5 higher.  Heavier weights sold unevenly steady.  The supply was light to moderate.  The week’s auctions were impacted by winter weather.  Receipts of 24,770 were down on the week, but up on the year.  Feeder supply included 57 percent steers and 53 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 649 pounds brought $135 to $163 and feeder steers 700 to 746 pounds brought $128 to $160.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $125 to $154.50 and feeder heifers 650 to 698 pounds brought $120 to $141.50. 

In Nebraska this week, baled hay, ground and delivered hay, and alfalfa pellets were all steady compared to the previous week.  The USDA says demand remains light on baled hay products with good demand for alfalfa pellets.  Supply in the eastern part of the state for alfalfa bales and some grass hay is good.  Quality varies with different package options available.  In Eastern/Central Nebraska, Alfalfa: Good large rounds brought $100 to $115, fair large rounds brought $80 to $95.  Prairie Hay, Premium large rounds brought $120 to $125, good large rounds brought $90 to $100.  Premium small squares brought $170 to $180.  Dehy alfalfa pellets, 17% protein brought $320 to $330.  Sun-cured pellets 15 percent brought $290.  In the Platte Valley area, Alfalfa: Good large rounds $105 to $110.  Ground and delivered alfalfa brought $140 to $145.  Ground and delivered alfalfa/cornstalk mix brought $125 to $135.  Dehy alfalfa pellets 17 percent protein brought $270 to $275.  Sun-cured alfalfa 15 percent protein brought $250 to $270.  In Western Nebraska, Alfalfa good large squares brought $160 to $175.  Good large rounds brought $120 to $130.  Sun-cured alfalfa pellets 15 percent protein brought $255. 

Boxed beef closed weak to lower on light to moderate demand and moderate offerings.  Choice closed $.83 lower at $214.49 and Select closed $.50 lower at $210.70.    The Choice/Select spread closed at $3.79.

Estimated cattle slaughter is 122,000 head – up 6,000 on the week and 5,000 on the year.  Saturday’s estimated kill is 35,000 head, up 8,000 on the week and up 10,000 on the year. 

Lean hog futures ended the day lower on profit-taking and record high pork production combined with demand uncertainty.  February lean hogs closed $1.27 lower at $67.22 and April lean hogs closed $1.90 lower at $73.45. 

Cash hogs closed firm to higher with moderate negotiated purchases.  Packers bid up to move their desired numbers.  This week’s export sales report showed some promise.  And while China’s purchases weren’t quiet what the industry had hoped to see, actual shipments did show some strength.  Increasing demand for US pork on the global market will remain a priority – especially as supplies continue to grow.  If demand isn’t realized, it will be very difficult for hog prices to turn around and push higher. 

Barrows and gilts at the National Daily Direct closed $.59 higher with a Base Range of $47 to $55 for a weighted average of $52.73; the Iowa/Southern Minnesota closed $2.17 higher for a weighted average of $54.83; the Western Corn Belt closed $1.95 higher for a weighted average of $53.45.  The Eastern Corn Belt was not reported due to confidentiality. 

According to the USDA, early weaned pigs were $2 per head lower and all feeder pigs were steady to weak.  Demand was moderate for moderate offerings and receipts included 53 percent formulated prices.  Total composite formula range was $40.50 to $66.78 for an average of $51.14 and total composite cash range was $49 to $68 for an average of $59.15.  The average for all early weaned pigs was $54.65 and the average for all feeder pigs was $65.45.  

At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $12 to $20.  Receipts are down on the week, but up on the year.  Barrows and gilts were steady with moderate demand for moderate offerings at $28 to $36. 

Pork values closed lower – down $1.46 at $77.38.  Bellies, butts, loins, and hams were lower.  Rigs were weak.  Picnics closed firm. 

Estimated hog slaughter is 494,000 head – up 54,000 on the week and up 25,000 on the year.  Saturday’s estimated kill is 332,000 head – up 262,000 on the week and up 120,000 on the year.