Cattle lower ahead of on feed report
A light trade developed at the end of the day on Friday. Live deals in Nebraska and Colorado were at $106.50, about $.50 higher than last week’s weighted averages. It’s been another week with a light to moderate trade taking place just about every day, all above the previous week’s weighted averages.
At the Missouri Hay Market, hay business in the state has been slow. But if dry conditions surface, it could improve hay business. Pasture conditions in the state are in decent condition for the most part. Alfalfa Supreme medium squares brought $180 to $225. Small squares brought $7 to $9 per bale. Alfalfa Premium medium squares brought $160 to $180. Alfalfa good large rounds brought $120 to $160, small squares brought $5 to $7 per bale. Alfalfa fair large rounds brought $100 to $125. Alfalfa/Grass Mix, good/premium small squares brought $6 to $8 per bale. Mixed grass, good/premium large rounds brought $80 to $120.
Live and feeder cattle futures were lower on technical selling, despite the week’s higher direct cash cattle trade, getting ready for the USDA’s Cattle on Feed report. August live cattle closed at $105.80, down $1.22 and October live cattle closed at $108.55, down $1.22
August feeder cattle are $142.92, down $.50; September feeder cattle closed at $144.85, down $.97
Boxed beef closed firm to sharply higher with good demand for light offerings. Choice closed $.56 higher at $225.94 and Select closed $2.68 higher at $208.99. The Choice/Select spread is $16.95.
Estimated cattle slaughter is 116,000 head – up 4,000 on the week and down 1,000 on the year. Saturday’s estimated kill is 66,000 head – up 3,000 on the week and down 9,000 on the year.
Cash hogs closed firm to higher with moderate negotiated purchases. Packers bid up Friday afternoon to move their desired numbers. All eyes in the pork industry are glued to the supply and demand situation. The supply of market-ready hogs is more than ample and daily slaughter totals continue to push higher. That’s adding more pork to the market. Processors have been able to keep the supply chain moving and have even been able to dig into the backlog of hogs in the pork production system. Demand uncertainty remains and that’s limiting the market’s ability to push prices higher.
Lean hog futures were lower, pressured by the bearish cash and wholesale business during the session. The USDA’s Cold Storage numbers for July are out Monday afternoon.
Barrows and gilts at the National Daily Direct closed $.96 higher for a weighted average of $40.20; the Iowa/Minnesota closed $.32 higher for a weighted average of $41.84; the Western Corn Belt closed $1 higher for a weighted average of $41.84. Prices at the Eastern Corn Belt wS not reported due to confidentiality.
For the week, early weaned pigs were steady and all feeder pigs were $2 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 $15.97 to $42.53 for an average of $32.48 and the total composite cash range was $2.50 to $20 with a weighted average of $14.75. Total composite weighted average for all early-weaned pigs was $21.60 and the weighted average for all feeder pigs was $20.42.
Pork values closed sharply lower – down $2.57 at $73.51. Hams dropped more than $16. Bellies were also lower. Picnics were firm. Ribs, butts, and loins were higher to sharply higher.
Estimated hog slaughter is 476,000 head – up 10,000 on the week and down 1,000 on the year. Saturday’s estimated kill is 227,000 head – up 8,000 not he week and up 96,000 on the year. Thursday’s hog slather has been revised to 476,000 head.