Cattle futures mostly higher ahead of On Feed numbers
At the Chicago Mercantile Exchange, live cattle ended the day mostly higher and feeders were higher ahead of the Cattle on Feed numbers with additional from the ongoing strength in boxed beef prices and lower corn. The report was largely supportive for cash and futures prices. August live cattle closed $.87 higher at $124.27 and October live cattle closed $.90 higher at $129.05. August feeder cattle closed $.75 higher at $159.02 and September feeder cattle closed $2.60 higher at $165.50.
It was a quite Friday for direct cash cattle trade following the light to moderate business that took place on Wednesday and Thursday. Dressed deals in the North were at mostly $200, which is about $2 higher than the bulk of the previous week’s business and about steady with the weighted average basis out of Nebraska. Live deals had a full range of $121 to $123, steady to slightly higher than the prior week’s business.
At the Winter Livestock Auction in Kansas, compared to last week feeder steers 750 to 950 pounds were $4 to $5 higher. Steers 400 to 750 were $10 higher. Feeder heifers 750 pounds to 975 pounds were $2 to $4 lower and heifers 650 pounds to 759 pounds were steady. The USDA says demand was good. Receipts were down on the week and the year. Feeder supply included 74% steers 96% of the offering was over 600 pounds. Medium and Large 1 feeder steers 805 to 828 pounds brought $157.75 to $160 and feeder steers 902 to 945 pounds brought $146.75 to $151.60. Medium and Large 1 feeder heifers 712 to 714 pounds brought $153.35 to $154.24 and feeder heifers 773 to 798 pounds brought $144.10 to $149.10.
In Missouri this past week, as it relates to hay, most of the state continues to be in very good shape, but there are some small pockets that could use a rain. Producers are scouting for armyworms as that’s been a problem reported in neighboring states. The supply of hay is moderate, and demand is light to moderate. Alfalfa, supreme medium squares brought $200 to $250. Alfalfa, supreme small squares brought $8 to $12 per bale. Alfalfa, premium medium squares brought $160 to $200. Alfalfa, good large rounds brought $120 to $160. Alfalfa, good small squares brought $5 to $9 per bale. Alfalfa, fair large rounds brought $100 to $125. Alfalfa/grass, good/premium small squares brought $5 to $8 per bale.
Boxed beef closed sharply higher on good demand for fairly light offerings. Choice is $3.43 higher at $344.77 and Select is $2.12 higher at $318.53. The Choice/Select spread is $26.53. Estimated cattle slaughter is 116,000 head – even on the week and the year. Saturday’s estimated kill is 70,000 head – up 12,000 on the week and up 4,000 on the year.
Lean hog futures ended the day higher, supported by pork values and contracts’ discount to cash. October lean hogs closed $1.70 higher at $88.62 and December lean hogs closed $1.15 higher at $81.70.
Cash hogs closed lower with a fairly light negotiated run. Packers continue to monitor the availability of market-ready barrows and gilts. The mostly ongoing strong demand for US pork on the global market and domestically has helped provide a lot of prices support and the industry does expect that to continue. However, should any major disruptions to demand occur, it would likely send prices tumbling. Barrows and gilts at the National Daily Direct closed $2.40 lower with a base range of $93 to $108 and a weighted average of $96.40; the Iowa/Minnesota and the Western Corn Belt had a weighted average of $103.64. Prices at the Eastern Corn Belt were not reported due to confidentiality.
According to the USDA’s latest Feeder Pig Report, early-weaned pigs were steady and all feeder pigs were $7 per head higher. Demand was light to moderate for moderate offerings and receipts included 61% formulated prices. The Total Composite cash range was $32 to $46 with a weighted average of $42.61 and the Total Composite formula range was $38.98 to $48 and a weighted average of $4.86. The weighted average for all early-weaned pigs was $44.13 and the weighted average for all pigs was $64.54.
Butcher hog prices at the Midwest cash markets are steady at $68. At Illinois, slaughter sow prices were steady with good demand for moderate offerings at $69 to $87. Barrow and gilt prices were steady with moderate demand for moderate to heavy offerings at $62 to $68. Boars ranged from $45 to $50 and $10 to $12.
Pork values closed lower – down $2.14 at $119.26. Bellies dropped nearly $17. Butts and loins were also sharply lower. Picnics were weak. Ribs and hams were sharply higher. Estimated hog slaughter is 467,000 head – up 4,000 on the week and down 10,000 on the year. Saturday’s estimated kill is 85,000 head – up 8,000 on the week and down 142,000 on the year. Thursday’s revised hog slaughter is 473,000 head.