Market News
Cattle futures finish the week mixed
At the Chicago Mercantile Exchange, live and feeder cattle ended the day mixed, adjusting spreads. June live cattle closed $.27 lower at $133.82 and August live cattle closed $.25 lower at $135.85. May feeder cattle closed $.10 lower at $159.37 and August feeder cattle closed $.72 lower at $173.55.
It was a quiet end to the week for direct cash cattle trade activity following several days of light to moderate business. Deals for the week were at mostly $138 live, fully steady with the previous week’s weighted averages. Northern dressed trade was at mostly $222, also about steady with the previous week’s weighted average basis in Nebraska.
At the Winter Livestock Auction in Kansas, compared to last week feeder steers under 550 pounds sold with a firm undertone, steers 550 to 750 pounds were $1 to $2 higher, steers 750 pounds and up were $7 to $8 higher. Feeder heifers overall were $2 to $5 lower. The USDA says the market was active. Receipts were up on the week and the year. Feeder supply included 59% steers and 87% of the offering was over 600 pounds. Medium and Large 1 feeder steers 853 to 870 pounds brought $154 to $158 and feeder steers 951 to 994 pounds brought $136 to $142.10. Medium and Large 1 feeder heifers 882 to 897 pounds brought $135 to $138.25 and feeder heifers 903 to 921 pounds brought $135.10 to $138.10.
In Nebraska this past week, the USDA says demand for hay was very good and prices are fully steady. Producers are evaluating fields and there have been some reports of oats being planted into alfalfa stands hoping to add tonnage to the first cutting. There have also been reports of some producers running pivots on wheat or rye to give cattle some place to graze following calving. Winter kill in some alfalfa stands has been reported and some producers are still baling cornstalk residue because most of it did not compost over the winter and there is still too much residue in the field for planters to get through or disk under. In central Nebraska, prairie/meadow grass, premium small squares brought $220 F.O.B. In the East, alfalfa, fair/good large rounds brought $165. Alfalfa pellets 15% suncured brought $310 and alfalfa pellets 17% dehydrated brought $340. Grass, fair/good small squares brought $6.50. In the Platte Valley area, alfalfa, good large rounds brought $150. Alfalfa, ground brought $175 to $180. Alfalfa, pellets 17% dehydrated brought $280 to $305. In the West, alfalfa, premium large squares brought $240 to $300. Alfalfa, good large squares brought $200 to $210. Alfalfa, ground brought $225.
Boxed beef closed lower on light demand for light offerings. Choice is $.93 lower at $270.47 and Select is $.89 lower at $260.33. The Choice/Select spread is $10.14. Estimated cattle slaughter is 120,000 head – up 11,000 on the week and up 8,000 on the year. Saturday’s estimated kill is 61,000 head- up 21,000 on the week and down 3,000 on the year.
Lean hog futures ended the day mostly higher, supported by sharply higher pork values during the session. May lean hogs closed $.10 higher at $108.42 and June lean hogs closed $.42 higher at $114.57.
Cash hog closed lower with a fairly light negotiated run. Processors were pretty aggressive in their procurement efforts this past week and have been moving big numbers, sometimes even at lower prices. The industry continues to monitor the availability of market-ready hogs, and with projected tighter supplies, it could provide some price support. Demand for US pork has been strong on the global market, but there are long-term concerns which have been adding uncertainty to the market. Barrows and gilts at the National Daily Direct closed $2.57 lower with a base range of $96 and $102 with a weighted average of $97.73; the Iowa/Minnesota closed $2.24 lower at $100.28; the Western Corn Belt closed $1.86 lower at $100.28. Prices at the Eastern Corn Belt were not reported due to confidentiality.
According to the USDA’s Feeder Pig Report, early-weaned pigs were $10 lower while all feeder pigs were $6 lower. Prices trended lower throughout the week. Demand was light to moderate on moderate offerings and trade activity was slow to moderate. Receipts included 51% formulated prices. The weighted average for all early-weaned pigs was $59.97 and the weighted average for all feeder pigs was $111.75.
Butcher hog prices at the Midwest cash markets are steady at $76. At Illinois, slaughter sow prices were steady with moderate demand for light to moderate offerings at $80 to $92. Barrows and gilts were steady to $1 lower with moderate demand for moderate offerings at $64 to $72. Boars ranged from $42 to $47 and $20 to $25.
Pork values close firm – up $.05 at $103.16. Bellies were sharply higher. Ribs, butts, and loins were all higher. Picnics and hams were lower to sharply lower. Estimated hog slaughter is 460,000 head – up 1,000 on the week and down 10,000 on the year. Saturday’s estimated kill is 96,000 head – up 25,000 on the week and down 89,000 on the year. Thursday’s hog slaughter has been revised to 466,000 head.