Cattle futures move higher to end the week
Cattle trade was quiet, hogs closed lower.
An idle Friday for cash cattle trade with most of the week’s trade wrapped up before the day started with some clean-up trade taking place. Live deals in Iowa have been renewed from $106 to $108. Dressed deals in Nebraska came in at $167. It’s been a week with light to moderate trade taking place just about every day.
Looking at the Missouri weekly cattle auction summary, Medium and Large 1 to 2 steers weighing 500 to 600 pounds brought $120 to $162. Medium and Large 1 to 2 steers weighing 600 to 700 pounds brought $115 to $157. Medium and Large 1 to 2 heifers weighing 550 to 650 pounds brought $90 to $140.50. And Medium and Large 1 heifers weighing 650 to 750 pounds brought $94 to $139.75.
Chicago Mercantile Exchange live and feeder cattle futures were higher, supported by technical buying. December live was up $.30 at $108.65 and February was $.70 higher at $112.15. November feeders were $.12 higher at $137.70 and January was up $.52 at $135.92.
Boxed beef closed mixed with moderate demand for moderate offerings. Choice closed $1.77 higher at $214.32 and Select closed $.48 lower at $198.49. The Choice/Select spread is $16.95.
Estimated cattle slaughter is 109,000 head – down 5,000 on the week and 9,000 on the year. Saturday’s estimated kill is 59,000 head – down 5,000 on the week and 4,000 on the year.
Cash hogs closed lower with moderate negotiated purchases. The industry has kept a close eye on the supply and demand situation. Demand for US pork is expected to remain strong both globally and domestically, and that’s supportive to prices. However, the availability of market-ready hogs is more than ample and processors are continuing to push daily slaughter totals higher. That’s adding more pork to an already saturated market. One benefit of those higher slaughter runs is it’s helping to keep the supply chain moving which should help to move through some of the backlog of hogs in the production system that still lingers from the COVID-19-related slowdowns and shutdowns.
Lean hog futures were mixed on spread adjustments and the mixed cash during the session. December was $2.52 lower and February was down $1.45.
Barrows and gilts at the National Daily Direct closed $.95 lower for a weighted average of $60.18; the Iowa/Minnesota closed $.28 higher for a weighted average of $61.34; the Western Corn Belt closed $.08 higher for a weighted average of $61.25. Prices at the Eastern Corn Belt were not reported due to confidentiality.
For the week, early-weaned pigs were steady to firm and all feeder pigs were $7 per head higher. The USDA says demand was moderate for moderate offerings. Receipts included 37 percent formulated prices. Total composite formula range for early-weaned pigs was $28.22 to $44.00 for an average of $38.68 and the total composite cash range was $20.50 to $35 with a weighted average of $27.26. Total composite weighted average for all early-weaned pigs was $21.60 and the weighted average for all feeder pigs was $32.43.
Pork values closed sharply lower – down $2.32 at $84.06. Hams dropped more than $10. Bellies were also lower. Picnics were up $1.65. Ribs, butts, and loins were higher to sharply higher.
Estimated hog slaughter is 488,000 head – up 3,000 on the week and 4,000 on the year. Saturday’s estimated kill is 260,000 head – up 9,000 not he week and up 17,000 on the year.