Cattle futures closed higher waiting for direct business to develop
At the Chicago Mercantile Exchange, live and feeder cattle closed higher ahead of significant direct cattle trade and the higher boxed beef prices at midday. December live cattle closed $.32 higher at $108.30 and February live cattle closed $.02 higher at $110.40. November feeder cattle closed $1.67 higher at $137.40 and January feeder cattle closed $2.77 higher at $134.12.
At the end of the day Friday, there was no significant direct cattle trade that had taken place. There was a light trade that developed on Friday at $105 to $106 live in Kansas. Another very light trade in the North with dressed deals at $162 to $163. There was also a very light trade that took place in parts of the North at $103 to $104 live, steady to $1 lower than last week’s weighted average basis in Nebraska. Dressed business this week ranged from $158 to $163.
In Missouri, last week steer and heifer calves were mostly steady to $3 lower and yearlings traded steady to firm on comparable sales. Receipts were light this week, most likely weather-related. Feeder supply included 53 percent steers and 50 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 652 to 698 pounds brought $115 to $152 and feeder steers 802 to 845 pounds brought $107 to $147.25. Medium and Large 1 feeder heifers 500 to 545 pounds brought $109 to $151 and feeder heifer s650 to 699 pounds brought $106.50 to $145.
At the Missouri Hay Market, hay movement continues to be limited and demand is light. The USDA says supplies are moderate to heavy and prices are steady. Alfalfa, supreme medium squares brought $200 to $250. Alfalfa, supreme small squares brought $7 to $9 per bale. Alfalfa, premium medium squares brought $160 to $200. Alfalfa good, large rounds brought $120 to $160. Alfalfa, good, small squares brought $5 to $7. Alfalfa/Grass Mix, good/premium small squares brought $6 to $8 per bale. Mixed grass, good/premium large rounds brought $80 to $120.
Boxed beef closed steady to firm with moderate demand for moderate offerings. Choice closed $.78 higher at $208.10 and Select is $.01 higher at $191.24. Estimated cattle slaughter is 114,000 head – up 11,000 on the week and down 4,000 on the year. Saturday’s estimated kill is 64,000 head – up 4,000 on the week and down 11,000 on the year. Thursday’s cattle slaughter has been revised to 110,000 head.
Lean hog futures were mixed on spread adjustments. December lean hogs closed $.05 lower at $65.57 and February lean hogs closed $.05 lower at $65.55.
Cash hogs closed steady to weak with a moderate negotiated run. Supply and demand continue to be the major driver behind this market. Supplies of market-ready hogs are more than ample and processors continue to push daily slaughter totals higher, adding more pork to an already saturated market. However, the industry remains optimistic demand for US pork will continue to grow. Barrows and gilts at the National Daily Direct closed $.31 lower with a base range of $56 to $63 for a weighted average of $61.35; the Iowa/Minnesota closed $.34 lower with a weighted average of $61.79; the Western Corn Belt closed $.15 higher with a weighted average of $61.85. Prices at the Eastern Corn Belt was not reported due to confidentiality.
According to the USDA’s Feeder Pig Report, early-weaned pigs were steady, and all feeder pigs were $2 per head higher. Demand was light to moderate on light receipts. The Total Composite cash range was $28 to $45 with a weighted average of $36.12 and the Total Composite formula range was $31.98 to $45.24 with a weighted average of $41.17. The Total Composite weighted average for all early-weaned pigs was $38.82 and the average for all feeder pigs was $47.19.
Butcher hog prices at the Midwest cash markets are steady at $38. At Illinois, slaughter sow prices were firm with good demand for moderate offerings at $24 to $39. Barrow and gilt prices were $2 higher with good demand for moderate to heavy offerings at $39 to $45. Boars ranged from $5 to $7.
Pork closed sharply lower – down $3.77 at $83.80. Hams dropped nearly $14. Ribs, loins, and picnics were all sharply lower. Butts were weak. Bellies closed higher. Estimated hog slaughter is 485,000 head – down 1,000 on the week and down 4,000 on the year. Saturday’s estimated kill is 251,000 head – up 14,000 on the week and up 12,000 on the year. Thursday’s hog slaughter has been revised to 483,000 head.