Cattle futures end the week mostly lower

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Cattle futures end the week mostly lower

At the Chicago Mercantile Exchange, live cattle and feeder cattle were mostly lower watching corn and the end of the week clean-up direct cash cattle trade.  June live cattle closed $1.27 lower at $135.85 and August live cattle closed $1.17 lower at $136.90.  May feeder cattle closed $.42 lower at $166.12 and August feeder cattle closed $1.22 lower at $176.35. 

It was a quiet Friday for direct cash cattle trade activity following two days of light to moderate business. For the week Southern live trade were at mostly $138 live, fully steady with the bulk of the previous week’s business.  Northern dressed deals had a wide range – from $219 to $228, but were mostly $222 to $225, roughly $1 to $4 higher than the prior week’s weighted average basis in Nebraska. 

At the Mobridge Livestock Exchange in South Dakota, there was a good to very good demand for the loads and part-loads of steers and heifers.  Demand for packages was moderate to good, depending on quality, which varied from plain to attractive.  The USDA says the market was active.  Receipts were down from two weeks ago.  Feeder supply included 75% heifers and 85% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 630 pounds brought $191 to $200.25 and feeder steers 715 to 730 pounds brought $170 to $177.50.  Medium and Large 1 feeder heifers 655 to 695 pounds brought $147 to $162.75 and feeder heifers 700 to 740 pounds brought $145 to $160.50. 

In South Dakota, all classes of hay remain steady.  The USDA says demand for all types and qualities of hay are good as supplies continue to tighten.  For the most part, the mild weather has had at least some positives for producers in the state, as cattle have been able to maintain body condition without much supplemental feed.  However, rain and wet snow fell this past week in parts of the state, bringing much-needed spring moisture.  Alfalfa, good large squares brought $225.  Grass, fair large rounds brought $170.  Corn stalks, and round bales brought $60.  Oat small squares brought $6 per bale. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice closed $1.25 lower at $267.14 and Select closed $.18 higher at $262.52.  The Choice/Select spread is $4.62.

Estimated cattle slaughter is 109,000 head – down 5,000 on the week and up 5,000 on the year.  Saturday’s estimated kill is 40,000 head – down 17,000 on the week and up 10,000 on the year. Lean hog futures closed mixed, adjusting spreads.  May lean hogs closed $.40 lower at $113.17 and June lean hogs closed $.17 lower at $120.45. 

Cash hogs closed mixed with a light negotiated run. Processors have been moving their desired numbers this week at lower prices and haven’t needed to get aggressive in their procurement efforts.  The industry continues to monitor the availability of market-ready hogs.  And while strong demand on both the global market and domestically has helped provide price support, there are lingering long-term concerns adding pressure to prices.

Barrows and gilts at the National Daily Direct closed $1.45 lower with a base range of $98 to $108 and a weighted average of $100.87; the Iowa/Minnesota closed $.47 lower with a weighted average of $104.76; the Western Corn Belt closed $.54 higher with a weighted average of $104.76.  Prices at the Eastern Corn Belt were not reported at midday due to confidentiality. 

According to the USDA’s weekly feeder pigs report, early-weaned pigs were $1 higher while feeder pigs were $2 lower.  Prices weakened throughout the week.  Demand and offerings were both light to moderate, trade was active.  Receipts included 43% formulated prices.  The total Composite cash range was $58 to $89.75 with a weighted average of $72.92.  The total composite formula range was $102 to $125 and a weighted average of $117.97. The weighted average for early-weaned pigs was $63.72 and the weighted average for all feeder pigs was $117.97. 

Butcher hog prices at the Midwest cash markets were steady at $80. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $78 to $89.  Barrows and gilts were steady with moderate demand for moderate offerings at $66 to $73.  Boars ranged from $40 to $45 and $20 to $25. 

Pork values closed sharply lower – down $4.12 at $103.60.  Bellies dropped nearly $15 on Friday.  Hams were also sharply lower.  Picnics and loins were lower.  Ribs and butts were higher to sharply higher.  Estimated hog slaughter is 467,000 head – up 7,000 on the week and up 28,000 on the year.  Saturday’s estimated kill is 61,000 head – up 4,000 on the week and up 5,000 on the year. 

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