Market News
Cattle, hog futures finish the week higher
At the Chicago Mercantile Exchange, live and feeder cattle closed higher on oversold signals. October live cattle closed $.52 higher at $104.45 and December live cattle closed $.65 higher at $108.47. September feeder cattle closed $.05 higher at $137.65 and October feeder cattle closed $.17 higher at $138.50.
Direct cash cattle trade ended the week quietly. There was a light to moderate trade that took place throughout the week with Southern live deals marked at $102 to $103, $2 to $3 lower than the previous week’s weighted averages and Northern dressed trade ranged from $162 to $163, mostly at $163, $4 lower than the prior week’s weighted average basis in Nebraska.
In South Dakota, compared to the prior week feeder steers were $2 to $5 lower with instances of $6 to $7 lower. Feeder heifers were $1 to $3 lower with instances of $5 to $6 lower. The USDA says demand has been good, but the feeder market was under pressure this week. There was a lighter offering of yearlings met with strong demand. Receipts were up from the prior week and on the year. Feeder supply included 66 percent steers and 95 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 803 to 849 pounds brought $134 to $153 and feeder steers 855 to 899 pounds brought $125.50 to $149. Medium and Large 1 feeder heifers 751 to 797 pounds brought $132.50 to $142.50 and feeder heifers 850 to 898 pounds brought $120.25 to $137.75.
At the Missouri Hay market, supplies are heavy and the demand and movement is light. In fact, there is still some hay being baled. 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, Good 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. Mixed grass fair/good large rounds brought $60 to $80 and small squares brought $3 to $6 per bale.
Boxed beef close lower to sharply lower on light demand for moderate offerings. Choice closed $1.39 lower at $225.85 and Select closed $3.20 lower at $209.30. The Choice/Select spread is $16.55. Estimated cattle slaughter is 115,000 head – down 1,000 on the week and 3,000 on the year. Saturday’s estimated kill is 44,000 head – down 22,000 on the week and down 58,000 on the year.
Lean hog futures closed higher, supported by the stronger wholesale values and demand optimism. October lean hogs closed $.57 higher at $59.82 and December lean hogs closed $.27 higher at $58.25.
Cash hogs closed mixed with moderate negotiated purchases. Packers were aggressive in their procurement efforts this week in order to move desired numbers ahead of the holiday weekend. The cash hog market has been stuck in a price pattern that struggles because of heavy supplies and demand uncertainty. Domestic and global demand have been relatively strong recently, there’s still concern that it won’t be sustained and that makes it very difficult for the cash hog market to push higher for any significant length of time. Barrows and gilts at the National Daily Direct closed $.47 lower with a base range of $40 to $50 for a weighted average of $45.89; the Iowa/Minnesota closed $.73 higher for a weighted average of $47.17; the Western Corn Belt closed $.47 higher for a weighted average of $46.91. Prices at the Eastern Corn Belt was not reported due to confidentiality.
According to the USDA’s Feeder Pigs report, early-weaned pigs were $1 per head higher and all feeder pigs were $3 per head higher. Demand was moderate for moderate offerings and receipts included 38 percent formulated prices. The Total Composite formula range was $22.13 to $40.50 for an average of $33.82 and the Total Composite cash range was $8 to $28.50 for an average of $19.86. The Total Composite weighted average for all early-weaned pigs was $25.86 and the weighted average for all feeder pigs was $27.13.
The Midwest cash markets are closed today. At Illinois, slaughter sow prices were steady with good demand for light to moderate offerings at $11 to $23. Barrows and gilts were firm with good demand for moderate to heavy offerings at $24 to $28. Boars ranged from $1 to $3.
Pork values closed firm – up $.37 at $80.56. Ribs and hams were both sharply higher. Picnics closed higher. Butts and loins were lower and bellies were sharply lower. Estimated hog slaughter is 460,000 head – down 21,000 on the week and up 31,000 on the year. Saturday’s estimated kill is 119,000 – that’s down 150,000 on the week and down 239,000 on the year.
