Market News

Live cattle, hog futures end the day mixed

At the Chicago Mercantile Exchange, live cattle ended the day mixed, mostly higher on spread adjustments.  Feeder cattle were lower, except one deferred contract, on the continued weakness in the cash trade and wholesale values, with additional pressure from the day’s mostly higher move in corn.  April live cattle closed $4.50 lower at $88.32 and June live cattle closed $2.22 lower at $80.85.  April feeder cattle closed $2.42 lower at $108.25 and May feeder cattle closed $3.55 lower at $108.10. 

Direct cash cattle trade had a very, very quiet week.  Bids were scarce following the light trade that took place on Wednesday.  There were just a handful of cattle sold in Nebraska at $168 dressed. Asking prices for cattle left on showlists were around $112 to $115 live in the South and $183 plus dressed in the North.  Deals earlier in the week were at $112 live, roughly $7 to $8 lower than last week’s weighted averages with dressed deals at $180, $9 to $10 lower than the previous week’s weighted average basis in Nebraska. 

In Missouri this past week, steer calves sold steady to $5 lower and yearlings sold $10 to $15 lower, heifer calves sold steady to $3 lower with yearling heifers $7 to $10 lower.  There were a few instances in the southern half of the state where calves of good quality and condition suitable for grazing were able to buck the lower trends and did see some better markets.  Demand was light to moderate, best on the lighter calves that still have a lot of time left to grow.  Receipts were up significantly on the week and on the year.  Feeder supply included 53 percent steers and 50 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 549 pounds brought $143.25 to $173 and feeder steers 600 to 648 pounds brought $125 to $163.  Medium and Large 1 feeder heifers 550 to 597 pounds brought $127 to $154.25 and feeder heifers 600 to 648 pounds brought $119 to $141.50. 

According to the USDA, the hay supply in Missouri is moderate, demand is light, and prices are steady.  There are reports of hay cutting taking place in southern states which indicates it is officially haying season in parts of the country.  Supreme quality alfalfa brought $180 to $200, small squares brought $7 to $9 per bale.  Premium quality alfalfa brought $160 to $180.  Good quality alfalfa brought $120 to $160, small squares brought $5 to $7 per bale.  Fair quality alfalfa brought $100 to $125.  Good quality mixed grass hay brought $80 to $120, small squares brought $6 to $8 per bale (some alfalfa/grass mix). Fair to good quality mixed grass hay brought $60 to $80, small squares brought $3 to $6 per bale. 

Boxed beef closed lower on light demand and light offerings.  Choice closed $2.20 lower at $230.44 and Select closed $6.25 lower at $215.84.  The Choice/Select spread closed at $14.60.  Estimated cattle slaughter is 107,000, down 10,000 on the week and even on the year.  Saturday’s estimated kill is 52,000 head, down 23,000 on the week and up 15,000 on the week. 

Lean hog futures ended the day mixed on spread adjustments.  April lean hogs closed $4.47 lower at $40.22 and May lean hogs closed $4.25 lower at $41.22. 

Cash hogs ended the day mixed with moderate negotiated numbers. Supplies are heavy and packers have shown very little interest this week and prices have suffered.  There are concerns domestic demand has plateaued until any of the social distancing restrictions are lifted and that’s detrimental to prices.  The one silver lining that remains is the global demand picture.  Protein supplies are short and as long as pork production isn’t greatly impacted by a coronavirus outbreak, the US industry is well-positioned to fill the pork and protein needs of the world left by African swine fever.  Barrows and gilts at the National Daily Direct closed $1.70 lower with a base range of $40 to $45 for a weighted average of $42.88; the Iowa/Minnesota closed $.21 higher for a weighted average of $43.84; the Western Corn Belt was unchanged for a weighted average of $43.65; the Eastern Corn Belt has no comparison, but a weighted average of $42.67. 

According to the USDA, all early-weaned pigs were $6 per head lower.  No feeder pigs were reported for a market test.  Demand was light to moderate for moderate offerings.  Receipts included 44 percent formulated prices.  The Total Composite formula range for early-weaned pigs was $26.14 to $42.40 for an average of $35.39.  The Total Composite cash range was $2 to $20 for an average for $10.23.  The Total Composite weighted average for all early-weaned pigs was $21.33. 

At Illinois, slaughter sow prices were $2 to $6 lower with very light demand for moderate offerings at $25 to $40.  Barrow and gilt prices were $2 to $9 lower with very light demand for moderate offerings at $20 to $25.  Boars under 300 pounds were $10 to $12 lower and boars over 300 pounds were $5 to $8. 

Pork values ended the day lower – down $1.84 at $57.37.  Loins, hams, and picnics all closed sharply lower.  Butts are firm.  Ribs and bellies are higher.  Estimated hog slaughter is 483,000 head – down 6,000 on the week and up 63,000 on the year.  Saturday’s estimated kill is 187,000, down 88,000 on the week and up 46,000 on the year.