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Cattle futures end the week higher

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, feeders led the way up on the day’s lower move in corn.  June live cattle closed $1.12 higher at $118.70 and August live cattle closed $1.47 higher at $120.02.  August feeder cattle closed $2.77 higher at $151.17 and September feeder cattle closed $2.62 higher at $153.52.  

It was quiet end to the week for direct cash cattle trade. Southern live deals throughout the week were at $118 to $120, generally steady with prior week’s trade.  Northern dressed deals had a full range of $189 to $196, mostly $190 to $191, also generally steady with the previous week’s weighted average basis in Nebraska. 

At the Mitchell Livestock Auction in South Dakota, compared to last week there was a much larger offering of feeder cattle.  Steers over 800 pounds were steady to $1 higher with instances of $4 higher on 950 to 1000 pounds steers.  Feeder heifers were steady to $2 higher with instances of $4 higher on 800 to 850 pounds heifers.  The USDA says there was very good demand for the large offering of feeder cattle.  There were many long strings of backgrounded yearling steers and heifers offered in full loads and multiple load lots.  Flesh condition was uneven as there were light fleshed cattle, but also plenty of cattle in much heavier flesh condition.  Receipts were up on the week, but down on the year.  Feeder supply includes 52% steers and 94% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 857 to 889 pounds brought $134.25 to $137.25 and feeder steers 954 to 971 pounds brought $128.35 to $134.75.  Medium and Large 1 feeder heifers 802 to 847 pounds brought $124.25 to $134.10 and feeder heifers 852 to 890 pounds brought $122 to $130.25.   

At the South Dakota Hay market last week there were a few comparable sales for alfalfa, they were steady to firm.  The USDA says demand is very good for hay as the drought conditions are creating serious concern about the supply of new-crop hay.  Cold, dry weather in May restricted growth, resulting in a reduced tonnage of the first cutting.  The quality of new hay has been outstanding.  Alfalfa, premium/supreme larges squares brought $210.  Alfalfa, premium large squares brought $205.  Alfalfa, good large rounds brought $165.  Alfalfa/grass mix, premium large rounds brought $125 and large squares brought $200.  Grass, good/premium large rounds brought $120.   

Boxed beef closed lower to sharply lower on light demand for very light offerings.  Choice closed $.69 lower at $337.56 and Select closed $5.19 lower at $305.21.  The Choice/Select spread is $32.35. Estimated cattle slaughter is 119,000 head – even on the week and up 5,000 on the year.  Saturday’s estimated kill is 70,000 head – down 28,000 on the week and down 3,000 on the year. 

Lean hog futures ended the day mostly lower on spread adjustment and profit taking.  June lean hogs closed $.22 higher at $122.67 and July lean hogs closed $1.35 lower at $119.97. 

Cash hogs closed lower with a moderate negotiated run.  Processors continue to monitor the availability of market-ready barrows and gilts.  Prices have been supported recently by the strong demand for US pork on the global market and domestically.  Overall, that’s expected to continue.  But should a disruption occur, it would likely send prices tumbling. Barrows and gilts at the National Daily Direct closed $.46 lower with a weighted average of $119.26.  The Iowa/Minnesota had a weighted average of $131.98 and the Western Corn Belt had a weighted average of $130.41.  The Eastern Corn Belt was not reported due to confidentiality. 

According to the USDA’s weekly Feeder Pig Report, early-weaned pigs and all feeder pigs were $2 per head lower.  Demand was light to moderate for moderate offerings and receipts included 62% formulated prices.  The total composite cash range was $36 to $52 for an average of $44.16.  The total composite formula range was $39.47 to $51.35 and an average of $44.41.  The weighted average for all early-weaned pigs is $44.33 and the weighted average for all feeder pigs was $70.64. 

Butcher hog prices at the Midwest cash market are steady at $75. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $38 to $49.  Barrow and gilt prices were firm with moderate demand for light offerings at $75 to $80.  Boars ranged from $45 to $50 and $12 to $18. 

Pork values closed lower – down $1.51 at $132.54.  Bellies, butts, and hams were all sharply lower.  Ribs and picnics were lower.  Loins were firm.  Estimated hog slaughter is 457,000 head – down 21,000 on the week and up 26,000 on the year.  Saturday’s estimated kill is 53,000 head – down 143,000 on the week and down 187,000 on the year. 

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