Cattle futures mostly lower to end the week

Market News

Cattle futures mostly lower to end the week

At the Chicago Mercantile Exchange, live cattle ended the day mostly lower on spread adjustments, feeder cattle had additional pressure from the day’s higher move in corn.  October live cattle closed $.17 higher at $109.87 and December live cattle closed $.02 lower at $112.60.  October feeder cattle closed $.20 higher at $138.25 and November feeder cattle closed $.92 lower at $135.52. 

A light to moderate direct cash cattle trade took place in all major feeding areas Friday.  Southern live deals were at $109, $2 higher than the previous week’s weighted averages.  Dressed business in Nebraska was at mostly $170, $2 higher than the prior week’s weighted averages and $1 higher than Thursday.  Live deals in Nebraska were at $108.  Most of the dressed deals are marked for delayed delivery. 

In Missouri this past week, steers were unevenly steady to $3 lower, except some loads of yearlings which were steady to $2 higher.  Feeder heifers were mixed, from $3 lower to $1 higher.  The supply of feeders was moderate, and demand was moderate to good.  Weather continues to weigh on the markets.  Receipts are up on the week and the year.  Feeder supply included 56 percent steers and 58 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 648 pounds brought $130 to $163.25 and feeder steers 650 to 698 pounds brought $133.50 to $160.  Medium and Large 1 feeder heifers 500 to 549 pounds brought $105 to $145 and feeder heifers 600 to 648 pounds brought $105 to $146. 

According to the Nebraska Hay Report from the USDA, alfalfa grass hay in the Central part of the state sold steady.  Good large squares of alfalfa sold steady in the Western part of the state.  Ground and delivered and dehy pellets were steady.  Demand remained strong as cattlemen, backgrounders, and feedlots have started to buy some loads of variety types and kind.  In Central Nebraska, Alfalfa, premium, large rounds brought $117.50.  Alfalfa, good, large rounds brought $85 to $105.  Alfalfa, fair/good large rounds brought $80, and ground alfalfa brought $125 per ton.  In Eastern Nebraska, alfalfa, premium large squares brought $150.  In the Platte Valley area, alfalfa, good large rounds brought $90 to $100.  Ground alfalfa brought $130 per ton.  Pellets 17% protein brought $280 to $285.  In the West, alfalfa supreme large squares brought $175.  Alfalfa, premium large squares brought $170.  Alfalfa premium small squares brought $8 per bale.  Alfalfa, good large rounds brought $130 to $165 and large squares brought $135 to $140.  Ground alfalfa brought $153 per ton. 

Boxed beef closed lower with light demand for moderate offerings.  Choice is $1.94 lower at $214.06 and Select closed $3.28 lower at $199.82.  Estimated cattle slaughter is 112,000 head – down 5,000 on the week and the year.  Saturday’s estimated kill is 53,000 head – down 17,000 on the week and down 7,000 on the year. 

Lean hog futures closed mostly higher, supported by the higher wholesale values during the session and demand optimism. October lean hogs closed $.77 higher at $78.12 and December lean hogs closed $.27 higher at $67.12. 

Cash hogs closed weak to lower with a fairly light negotiated run.  Ample supplies of market-ready hogs adds more pressure to the cash hog market.  Processors continue to ramp up daily slaughter totals as they work to alleviate some of the backlog in the production system.  However, it does add more pork to an already saturated market.  The industry remains optimistic demand for US pork will see a boost as the global supply picture continues to shift.  Barrows and gilts at the National Daily Direct closed $.53 lower with a base range of $60 to $68.50 for a weighted average of $64.52; the Iowa/Minnesota is $1.05 lower for a weighted average of $65.40; the Western Corn Belt closed $.86 lower for a weighted average of $65.63.  The Eastern Corn Belt was not reported due to confidentiality. 

Compared to last week, all early weaned pigs were $4 per head higher and all feeder pigs were $5 per head higher.  The USDA says demand was good for moderate offerings and receipts included 36 percent formulated prices.  The Total Composite cash range was $25 to $40.50 for an average of $34.02 and the Total Composite formula range was $32.75 to $44 for an average of $38.77.  The weighted average for all early-weaned pigs was $36.09 and the average for all feeder pigs was $46.19. 

Butcher hog prices at the Midwest cash markets are steady at $40. At Illinois, slaughter sow prices were higher with good demand for light offerings at $16 to $30.  Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $40 to $44.  Boars ranged from $1 to $3. 

Pork values closed weak – down $.56 at $94.80.  Hams, ribs, and loins were all lower.  Butts were weak.  Picnics and bellies were firm to higher.  Estimated hog slaughter is 487,000 head – up 23,000 on the week and 1,000 on the year.  Saturday’s estimated kill is 289,000 head – up 76,000 on the week and up 32,000 on the year.