Cattle futures end the week on a positive note
At the Chicago Mercantile Exchange, live and feeder cattle futures ended the day higher on oversold signals with additional support from the week’s stronger cash trade. June live cattle closed $2.87 higher at $97 and August closed $.82 higher $97.82. May feeder cattle closed $.92 higher at $124.72 and August feeder cattle closed $.02 higher at $131.07.
Direct cash cattle trade ended the week with a light trade across cattle country. Live deals in the South have been reported at $120, $5 to $10 higher than the week’s previous business and $20 higher than the prior week’s weighted average basis. Dressed business is at $182.
In Missouri this past week, feeder steers and heifers were mostly steady to $5 higher compared to the prior week. Some sales earlier in the week were as much as $10 higher. The feeder supply was moderate, and demand was moderate to good. Sales were active. Receipts were down slightly on the week and up slightly on the year. Feeder supply included 56 percent steers and 38 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 500 to 549 pounds brought $139.50 to $176.50 and feeder steers 600 to 649 pounds brought $125 to $163.50. Medium and Large 1 feeder heifers 450 to 499 pounds brought $125 to $156 and feeder heifers 500 to 549 pounds brought $121 to $154.75.
In Nebraska, compared to last week all reported forages sold steady. The USDA says demand was light as cattlemen only need a few bales in order to reach summer grass. In Eastern/Central Nebraska Alfalfa fair to mostly good large rounds brought $85 to $95. Prairie Hay: Good large rounds brought $70 to $90. Dehy alfalfa pellets 17 percent protein brought $300. Sun-cured alfalfa pellets brought $290. In the Platte Valley area, Alfalfa: Good large rounds brought $90. Ground and delivered alfalfa brought $115 to $120. Dehy alfalfa pellets 17 percent protein brought $270 to $285 and sun-cured alfalfa 15 percent protein brought $270. In Western Nebraska, Alfalfa: Good large squares brought $140.
Boxed beef prices continue their slide as they closed sharply lower on Friday. There was light demand for moderate to heavy offerings. Choice closed $16.60 lower at $434.32 and Select closed $18.34 lower at $419.06.
Estimated cattle slaughter is 91,000 head – up 6,000 on the week and down 28,000 on the year. Saturday’s estimated kill is 50,000 – up 6,000 on the week, but down 8,000 on the year.
Lean hog futures ended the day lower on long-term demand uncertainties and ongoing heavy supplies. June lean hogs closed $.87 at $57.87 and July lean hogs closed $1.05 lower at $57.76.
Cash hogs closed steady to firm with solid negotiated purchases. Slaughter capacity is slowly creeping back toward pre-COVID-19 levels, but there’s still a long way to go. Buyers continue to try and balance the availability of market-ready hogs with the available shackle-space as many facilities are still operating at reduced chain speeds. The industry remains optimistic about the global protein market. Global pork supplies are still short and the US could remain well-positioned to help meet the world’s pork and protein needs. Barrows and gilts at the National Daily Direct closed $.05 higher with a base range of $35 to $39 for a weighted average of $37.11; the Iowa/Minnesota closed $.47 higher for a weighted average of $36.88; the Western Corn Belt closed $.48 higher for a weighted average of $36.88. The Eastern Corn Belt was not reported due to confidentiality.
This week’s Feeder Pig Report shows early-weaned pigs were steady and all feeder pigs were $4 per head lower. The USDA says demand was light for moderate to heavy offerings and receipt included 35 percent formulated prices. The Total Composite formula weighted average was $30 .41 and the Cash weighted average was $7.20. The Total Composite weighted average for all early-weaned pigs was $15.77 and the average for all feeder pigs was $19.03.
The Midwest cash markets are closed today. At Illinois, slaughter sow prices were steady with moderate to good demand for moderate to heavy offerings at $7 to $20. Barrow and gilt prices were steady with moderate demand for heavy offerings at $16 to $20. Boars ranged from $1 to $5.
Pork values closed lower – down $3.67 at $110.12. Bellies and picnics dropped the most with a nearly $22 decline in the bellies and a more than $10 drop in the picnics. Loins and butts were also lower. Ribs were steady. Hams closed sharply higher.
Estimated hog slaughter is 375,000 head – up 40,000 on the week, but still down 73,000 on the year. Saturday’s estimated kill is 250,000 head – up 24,000 on the week and up 179,000 on the year. Thursday’s hog slaughter has been revised to 381,000 head.