Market News
Cattle futures end the week higher
At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, watching weather issues in major feeding areas. Feeder cattle had additional support from the day’s lower move in corn. February live cattle closed $1.87 higher at $117.20 and April live cattle closed $2.05 higher at $125.17. March feeder cattle closed $1.70 higher at $140.85 and April feeder cattle closed $1.35 higher at $144.72.
A quiet end to the week for direct cash cattle trade activity. The bulk of the week’s business took place on Wednesday and Thursday and was at $114 live in the South and mostly $180 dressed in the North, about $1 higher than the prior week’s weighted averages. There was also a late-round of live trade in Nebraska and Iowa Thursday evening at mostly $114, with some marked as high are $116 live.
At the Lexington Livestock Market in Nebraska, compared to last week steers over 650 pounds were $3 to $5 higher and heifers over 600 pounds were $3 higher. The USDA says demand was good from the buyers in the crowd. Receipts were up on the week and down on the year. Feeder supply included 70 percent steers and 83 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 718 to 748 pounds brought $144 to $146.50 and feeder steers 758 to 768 pounds brought $140.25 to $142.85. Medium and Large 1 feeder heifers 626 to 628 pounds brought $140 to $141.50 and feeder heifers 654 to 694 pounds brought $136 to $140.75.
At the Nebraska Hay Market, compared to last week baled hay sales were fully steady, sun-cured and dehy pellets in the eastern part of the state were $10 higher. The USDA says demand and buyer inquiry was very good this week and there is still a lot of hay getting shipped to out-of-state buyers. In Central Nebraska, alfalfa, premium large squares brought $180. Alfalfa good large rounds brought $95 to $120 and large squares brought $175. Ground alfalfa brought $135. Alfalfa/orchard mix, premium large rounds brought $140 and large squares brought $150. In the East, alfalfa, premium large squares brought $195. Alfalfa good large rounds brought $125. Sun-cured alfalfa pellets 15% brought $175 and dehy alfalfa pellets 17% protein brought $210. In the West, alfalfa supreme large squares brought $200. Alfalfa, good large squares brought $170.
Boxed beef closed mixed with light to moderate demand for moderate offerings. Choice closed $.59 lower at $232.37 and Select closed $.64 higher at $220.93. The Choice/Select spread is $11.44. Estimated cattle slaughter is 109,000 head – down 4,000 on the week and down 2,000 on the year. Saturday’s estimated kill is 41,000 head – down 29,000 on the week and up 17,000 on the year.
Lean hog futures ended the day mostly higher, supported by long-term demand optimism and firm move in pork at midday. February lean hogs closed $.02 lower at $74 and April lean hogs closed $.95 higher at $85.20.
Cash hogs closed higher with a moderate negotiated run. Packers had to work a little harder to move their desired numbers today. While the industry is optimistic demand for US pork will continue to see strength on both the global market and domestically, the heavy supplies do limit the market’s ability to move higher for any length of time. The availability of market-ready barrows and gilts is more than ample and daily slaughter totals continue to push higher. That adds more pork to an already saturated market. Barrows and gilts at the National Daily Direct closed $.42 higher with a base range of $55 to $70 and a weighted average of $65.38; the Iowa/Minnesota closed $.85 higher with a weighted average of $67.99; the Western Corn Belt closed $.22 higher with a weighted average of $67.94. Prices at the Eastern Corn Belt were not reported due to confidentiality.
According to the USDA’s feeder pig report, early weaned pigs were steady and all feeder pigs were $3 per head higher. Demand was moderate for moderate offerings and receipts included 50 percent formulated prices. The Total Composite Cash Range was $50 to $65 for an average of $60 and the Total Composite Formula Range was $39.50 to $65.03 for an average of $49.55. The Weighted average for all early-weaned pigs was $53.87 and the average for all feeder pigs was $77.78.
Pork values closed lower – down $.49 at $88.38. Loins and hams were sharply lower. Picnics were lower. Ribs, butts, and bellies were higher to sharply higher. Estimated hog slaughter is 488,000 head – up 19,000 on the week and up 12,000 on the year. Saturday’s estimated kill is 216,000 head – down 67,000 on the week and up 65,000 on the year.
