Market News

Cattle futures mostly lower ahead of On Feed numbers

At the Chicago Mercantile Exchange, live cattle were mostly lower and feeders were lower ahead of Friday’s On Feed numbers, which will likely be considered bearish in the near-term.  June lives closed $.07 higher at $131.57 and August lives closed $.47 lower at $131.55.  August feeder cattle closed $1.27 lower at $163.92 and September feeder cattle closed $.90 lower at $167. 

It was a quiet Friday for direct cash cattle trade activity.  For the week, Southern live deals ranged from $136 to $138, mostly $138, $2 lower than the previous week’s weighted averages.  Northern dressed deals ranged from $223 to $228, mostly $226, $3 lower than the prior week’s weighted average basis in Nebraska.

At the Winter Livestock Auction in Kansas, compared to last week feeder steers 850 to 950 pounds were steady to $2 lower.  Steers 950 to 1075 pounds were $2 to $3 higher.  Steers 700 to 850 pounds were $3 to $6 lower.  Feeder heifers 800 to 1000 pounds were $3 to $6 lower.  Heifers 500 to 800 pounds were $8 to $10 lower.  The USDA says demand was moderate.  Receipts were up on the week and down on the year.  Feeder supply included 44% steers and 94% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 851 to 896 pounds brought $144 to $150.75 and feeder steers 914 to 945 pounds brought $136 to $144.75.  Medium and Large 1 feeder heifers 758 to 798 pounds brought $138.50 to $141.75 and feeder heifers 860 to 892 pounds brought $128 to $134.50. 

In Missouri this past week, haying season got underway.  At the start of the wee 12% of alfalfa had seen its first cutting of hay and 2% of other hay.  With decent weather, those numbers will likely go up significantly in the next crop progress report.  The cooler than average weather will likely reduce some quality and yields because fields are especially short.  Prices on better-quality hay are firm.  Alfalfa, supreme medium squares brought $225 to $275.  Alfalfa, supreme, small squares brought $8 to $12.  Alfalfa, premium, medium squares brought $175 to $225.  Alfalfa, good large rounds brought $120 to $180.  Alfalfa, good, small squares brought $5 to $9.  Alfalfa, fair, large rounds brought $100 to $125. Alfalfa/grass, good/premium, small squares brought $6 to $8.  Mixed grass, good/premium, large rounds brought $80 to $140. 

Boxed beef closed mixed on light to moderate demand for light offerings.  Choice closed $.47 higher at $262.17 and Select is $3.04 lower at $243.02.  The Choice/Select spread is $19.15. Estimated cattle slaughter 123,000 head – up 3,000 on the week and up 4,000 on the year.  Saturday’s estimated slaughter is 58,000 head – up 16,000 on the week and down 12,000 on the year. 

Lean hog futures ended the day higher, supported by stronger cash and wholesale business.  June lean hogs closed $3.57 higher at $108.87 and July lean hogs closed $2.02 higher at $109. 

Cash hogs closed higher with a solid negotiated run. Demand for US pork on the global market and domestically has been strong. That’s helping to provide price support. The industry continues to monitor the availability of market-ready hogs.  Processors were aggressive in their procurement efforts to finish up the week. Barrows and gilts at the National Daily Direct closed $2.46 higher with a base range of $104 to $118 and a weighted average of $112.97; the Iowa/Minnesota closed $1.64 higher with a weighted average of $115.22; the Western Corn Belt closed $1.83 higher with a weighted average of $115.42.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s weekly Feeder Pig report, early-weaned pigs were mostly steady to lower and feeder pigs were $5 per head lower.  Demand was light on heavy offerings.  The Total Composite Cash Range for early-weaned pigs was $21 to $55.25 and a weighted average of $45.96.  The Total Composite Formula Range for early-weaned pigs was $32.14 to $51.12 and a weighted average of $41.64.  The weighted average of all early-weaned pig was $44.01 and the weighted average for all feeder pigs was $75.32. 

Butcher hog prices at the Midwest cash markets are $2 higher at $70. At Illinois, slaughter sow prices were $5 lower with light demand for light offerings at $50 to $62.  Barrows and gilts were steady with light to moderate demand for light to moderate offerings at $65 to $74.  Boars ranged from $40 to $50 ant $5 to $15. 

Pork values closed sharply higher – up $3.65 at $107.11.  Hams, picnics, bellies, ribs, and butts were all higher to sharply higher.  Loins were lower. Estimated hog slaughter 457,000 head – up 19,000 on the week and down 6,000 on the year.  Saturday’s estimated kill is 58,000 head – up 10,000 on the week and up 27,000 on the year.