Market News
Hog futures end the week higher
At the Chicago Mercantile Exchange, live cattle were mostly lower and feeders were lower watching corn and Friday’s cleanup direct business. December live cattle were $.25 higher at $132.12 and February live cattle closed $.30 lower at $136.10. November feeder cattle closed $1.07 lower at $156.25 and January feeder cattle closed $1.35 lower at $157.72.
There was a light, scattered direct cash cattle trade that took place Friday afternoon. Live deals on Friday were fully steady with the rest of the week’s business. Southern live deals during the week were at mostly $132, $3 higher than the prior week’s business. Northern dressed deals were at mostly $207, $4 higher than last week’s weighted averages.
At the Michell Livestock Auction in South Dakota, compared to last week feeder steers 550 to 600 pounds were $2 higher. Steers 900 to 950 pounds were steady, steers 1100 to 1150 pounds were $6 higher. Heifers 600 to 650 pounds were $2 higher, heifers 850 to 950 pounds were $1 higher. The USDA says there were many load lots in the yearling feeders that were offered and demand was good. Receipts were down on the week and up on the year. Feeder supply included 46% steers and 86% of the offering was over 600 pounds. Medium and Large 1 feeder steers 858 to 862 pounds brought $162.35 to $163.10 and feeder steers 918 to 932 pounds brought $155.85 to $163.75. Medium and Large 1 feeder heifers 627 to 649 pounds brought $153 to $156.50 and feeder heifers 853 to 892 pounds brought $144.10 to $153.85.
At the South Dakota Hay Market, all classes of hay remain firm. The USDA says demand was very good for all types of hay. Cattle producers are shipping and weaning calves which is keep demand for high-quality hay in high demand. All supplies of hay are much tighter this year due to the devastating drought conditions. Alfalfa, supreme large squares brought $285. Alfalfa, premium/supreme large rounds brought $250. Alfalfa large squares brought $250. Alfalfa/Grass mix, premium large rounds brought $200. Grass, premium large rounds brought $180. Grass, good large rounds brought $150. Grass, fair/good large rounds brought $140.
Boxed beef closed mixed with light to moderate demand for moderate offerings. Choice closed $.84 lower at $284.30 and Select closed $2.24 higher at $269.53. The Choice/Select spread is $14.77. Estimated cattle slaughter is 115,000 head – down 3,000 on the week and down 5,000 on the year. Saturday’s estimated kill is 58,000 head – up 13,000 on the week and down 6,000 on the year.
Lean hog futures ended the day higher, supported by sharply higher pork values during the session. December lean hogs closed $.50 higher at $75.87 and February lean hogs closed $1.47 higher at $80.55.
Cash hogs closed lower with a moderate negotiated run. Demand for US pork on the global market and domestically has been strong, and while that is expected to continue, there is some long-term demand concern and that is adding pressure to prices. The industry continues to monitor the availability of market-ready hogs and recently have been able to move their desired numbers with less aggressive bids. Barrows and gilts at the National Daily Direct closed $.26 lower with a base range of $55 to $60 and a weighted average of $55; the Iowa/Minnesota had a weighted average of $58.02; the Western Corn Belt had a weighted average of $58. Prices at the Eastern Corn Belt were not reported due to confidentiality.
According to the USDA’s Feeder Pig Report, all early-weaned pigs were steady to weak on light receipts and all feeder pigs were $2 per head lower. Demand was light to moderate for moderate offerings. Total Composite Cash Range for early-weaned pigs was $35 to $59 with a weighted average of $53.74. The Total Composite Formula Range for all early-weaned pigs was $39.53 to $58.57 and a weighted average of $49.05. The weighted average for all early-weaned pigs was $50.97 and the weighted average for all feeder pigs was $67.34.
Pork values closed lower $1.09 at $94.71. Hams dropped more than $20 on Friday. Ribs were also lower. Bellies, picnics, butts, and loins were all sharply higher. Estimated hog slaughter is 480,000 head – up 5,000 on the week and even on the year. Saturday’s estimated kill is 262,000 head – up 35,000 on the week and down 17,000 on the year.
