Cattle futures closed mixed ahead of USDA reports
At the Chicago Mercantile Exchange, live and feeder cattle closed mixed ahead of Friday’s cattle inventory and on feed numbers. August live cattle closed $.47 higher at $101.32 and October live cattle closed $.50 higher at $105.10. August feeder cattle closed $.02 higher at $142.05 and September feeder cattle closed $.42 lower at $142.75.
A relatively quiet end to the week for direct cash cattle trade. There were a few bids left on the table Friday at $96 to $96.75 live. There was a moderate trade that took place throughout the week with dressed business in the North at $157 to $158 and Southern live deals at mostly $96.
For the week in Missouri, steers were steady to $3 higher compared to the previous week and heifers were steady to $1 higher. The USDA says demand was moderate to good on a moderate supply. Receipts were down on the week, but up on the year. Feeder supply included 58 percent steers and 57 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 648 pounds brought $129 to $164 and feeder steers 750 to 796 pounds brought $125 to $151.50. Medium and Large 1 feeder heifers 550 to 599 pounds brought $120 to $151 and feeder heifers 603 to 648 pounds brought $111 to $143.50.
Compared to last week, Alfalfa and grass hay sales in South Dakota were fully steady. Demand was moderate overall with the best demand for high testing alfalfa hay for dairies. The first cutting of alfalfa this year has been high quality and the second cutting hasn’t been quite as high quality as heavy rains and high humidity moved in after it was cut. Alfalfa: Supreme large squares brought $225. Premium large squares brought $180. Good large squares brought $135. Alfalfa/Grass mix: Good large rounds brought $125. Grass: Premium small squares brought $5 to $5.50 per bale and $180 to $185 per ton. Large rounds of timothy brought $120. Corn stalks, large rounds brought $45.
Boxed beef closed steady to weak with light demand for light to moderate offerings. Choice closed $.49 lower at $201.77 and Select closed $.16 lower at $190.63. The Choice/Select spread closed at $11.14.
Estimated cattle slaughter is 113,000 head – down 2,000 on the week and down 6,000 on the year. Saturday’s estimated kill is 61,000 head – down 4,000 on the week and up 8,000 on the year.
Lean hog futures closed mixed, mostly higher on spread trade with support from the sharply higher wholesale values during the session. August lean hogs closed $.47 lower at $54 and October lean hogs closed $.87 lower at $50.15.
Cash closed sharply higher with big negotiated purchases. The cash hog market continues to watch the push and pull of the supply and demand picture. Processors have been pretty aggressive in the procurement efforts this week. Supplies of market-ready hogs are more than ample and slaughter runs have been pushing or exceeding pre-COVID-19 levels. That’s keeping the supply chain moving and it’s also allowing packers to start to dig into the backlog of hogs in the production system. Demand remains uncertain. But the reality is it needs to continue to improve both globally and domestically to support the market and push prices higher.
Barrows and gilts at the National Daily Direct closed $2.88 with a base range of $28 to $45 for a weighted average of $37.87; the Iowa/Minnesota closed $2.28 higher for a weighted average of $39.16; the Western Corn Belt closed $2.81 higher for a weighted average of $38.95; the Eastern Corn Belt had no comparison but a weighted average of $37.05.
In this week’s Feeder Pig Report, early-weaned pigs were steady to $2 per head higher and all feeder pigs were $6 per head higher. The USDA says demand was moderate for moderate to heavy offerings and receipts included 42% formulated prices. The Total Composite formula range was $9.49 to $40.50 for a weighted average of $28.71 and the cash range was $2 to $15 for a weighted average of $7.87. The Total Composite weighted average for all early-weaned pigs was $17.04 and the average for all feeder pigs was $16.84.
Butcher hog prices at the Midwest cash markets are steady at $24.
At Illinois, slaughter sow prices were firm with good demand for light offerings at $9 to $20. Barrow and gilt prices were $1 to $3 higher with good demand for moderate to heavy offerings at $18 to $24. Boars ranged from $1 to $3.
Pork values close higher – up $.86 at $70.53. Loins were sharply higher. Picnics and ribs were also higher. Butts were steady, bellies were lower. Hams closed sharply lower.
Estimated hog slaughter is 472,000 head – up 10,000 on the week and up 15,000 on the year. Saturday’s estimated kill is 231,000 head – up 36,000 on the week. Thursday’s hog slaughter has been revised to 471,000 head.