Cattle, hog futures ended the week on a positive note
At the Chicago Mercantile Exchange, live cattle ended the day higher on follow-through buying, higher cash business, and sharply higher wholesale values. Feeder cattle ended the day higher on the same factors and contracts were oversold and due for a bounce. June live cattle closed $1.30 higher at $87.25 and August live cattle closed $.45 higher at $92.55. May feeder cattle closed higher – up $.72 at $117.82 and August feeder cattle closed $1.15 higher at $127.65.
A light to moderate live trade took place on Friday. Deals were reported in Nebraska at $105, $9 higher than last week’s weighted average basis; in Kansas and Texas at $105. Kansas is $1 higher than last week’s weighted average basis and in Texas is $8 higher than last week’s weighted average basis.
In Missouri this past week, feeder steers and heifers sold mostly steady to $4 lower, with the exception of pee wee featherweight calves under 450 pounds which sold steady to $3 higher. The supply of feeders was moderate. There are more feeders being offered, but there’s still a long way to go to work through the current backup of cattle related to the processing disruptions. The USDA says demand was moderate. Feeder supply included 56 percent steers and 44 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 500 to 549 pounds brought $142 to $170.50 and feeder steers 650 to 698 pounds brought $120 to $146. Medium and Large 1 feeder heifers 600 to 648 pounds brought $116 to $146 and feeder heifers 650 to 699 pounds brought $115 to $141
At the Nebraska Hay market last week, all forages sold steady. The USDA says demand was moderate for baled hay with good demand for alfalfa pellets. With pasture grass slow to grow, some are having to procure extra hay to get them through to summer grass. There were few reports of a light freeze in some parts of the state. In Eastern/Central Nebraska, Alfalfa: Good to premium large rounds brought $105; Fair to mostly good large rounds brought $85 to $95. Premium small squares brought $7 per bale. Alfalfa baleage: supreme large squares brought $150 delivered. Alfalfa/orchard grass: Premium small squares brought $7 per bale. Prairie Hay: Good large rounds brought $70 to $90. Premium small squares brought $170 to $180. In the Platte Valley area of Nebraska: Alfalfa: Good large squares brought $115 delivered. Good to premium large rounds brought $110. Ground and delivered alfalfa $115 to $135. Ground and delivered alfalfa/cornstalk mix $105 to $110. Dehy Alfalfa pellets 17 percent protein brought $270 to $285. Sun-cured alfalfa 15 percent protein brought $285. In Western Nebraska: Alfalfa good large rounds brought $120. Ground and delivered alfalfa brought $153.
Boxed beef closed sharply higher on strong demand for moderate offerings. Choice is up $9.89 at $377.45 and Select closed $6.97 higher at $357.13. Estimated cattle slaughter is 77,000 head – down 6,000 on the week and down 43,000 on the year. Saturday’s estimated slaughter is 47,000 head – up 4,000 on the week and down 21,000 on the year.
Lean hog futures closed sharply higher on follow-through buying, support from sharply higher wholesale values, and optimism about the potential increase in demand for pork. May lean hogs closed $3.75 higher at $62.87 and June lean hogs closed $3.75 higher at $62.70.
Cash hogs closed steady with fairly light negotiated purchases. There has been ongoing concern about the domestic demand situation as many places are still under social distancing restrictions. Not to mention the food supply chain has been under pressure as processing slowdowns and shutdowns remain. There’s still no timeline as to when facilities will be able to run at their full capacity, but even when they do, it will take some time to work through the animals already backed-up supply chain as the availability of market-ready hogs remains more than ample. Barrows and gilts at the National Daily Direct closed $.01 higher with a base range of $34 to $43 for a weighted average of $37.48. Prices at the regional directs were not reported due to confidentiality.
This week’s Feeder Pig report from the USDA shows early-weaned pigs were $2 per head higher. All feeder pigs were $2 per head lower. Demand was light for moderate to heavy offerings and receipts included 50% formulated prices. For early-weaned pigs the total composite formula range was $4 to $40.50 for an average of $27.49 and the cash range was $1 to $12 for an average of $5.91. The total composite for all feeder pigs was $8 to $30 for an average of $16.06. The total composite weighted average for all early-weaned pigs was $17.67 and the weighted average for all feeder pigs was $16.06.
The Midwest cash markets are closed today. At Illinois, slaughter sow prices were weak with light to moderate demand for moderate offerings at $12 to $25. Barrow and gilt prices were steady with light demand for heavy offerings at $10 to $15. Boars ranged from $2 to $5.
Pork values closed sharply higher – up $5.89 at $106.61. Bellies jumped nearly $28 today. Picnics, ribs, hams, butts, were all higher to sharply higher. Loins closed lower.
Estimated hog slaughter is 280,000 head – down 81,000 on the week and down 180,000 on the year. Saturday’s estimated kill is 135,000 head – down 47,000 on the week.