Cattle futures higher ahead of widespread direct business
Market News
Cattle, hog futures higher to end the week
At the Chicago Mercantile Exchange, live and feeder cattle were up watching the rest of the week’s direct business develop. Boxed beef was also sharply higher at midday. February lives closed $1.17 higher and April lives closed $1.20 higher at $199.47. March feeders closed $1.10 higher at $269.40 and April feeders closed $1.10 higher at $270.17.
There was another light round of direct cattle business that took place on Friday following Thursday’s trade. For the week, Live deals ranged from mostly $200 to $201, $4 to $5 higher than the previous week’s business. Dressed deals for the most part were at $320, $5 higher than the prior week’s weighted average basis in Nebraska.
At the Mitchell Livestock Market in South Dakota, feeder steers 600 to 850 pounds were $7 to $12 higher, steers 850 to 950 pounds were steady to $4 higher, with instances of sharply higher. Heifers 500 to 800 pounds were $6 to $9 higher and heifers 800 pounds and up were steady to $4 higher. The USDA says demand was very good. Light fleshed feeders were in high demand and brought top dollar. There were many large load lots in the day’s offerings. Receipts were up on the week and the year. Feeder supply included 55% steers and 88% of the offering was over 600 pounds. Medium and Large 1 feeder steers 702 to 744 pounds brought $293 to $321 and feeder steers 804 to 849 pounds brought $269 to $282.10. Medium and Large 1 feeder heifers 653 to 698 pounds brought $279 to $304 and feeder heifers 755 to 786 pounds brought $254 to $266.75.
At the Nebraska Hay Market, hay prices were steady. The USDA says demand was mostly light. The best demand is for hay going out of state. Supplies are outweighing demand. In the Central part of the state, alfalfa, ground, brought $135. Alfalfa, premium, large round, brought $102.50. Alfalfa, good, large rounds, brought $70 to $85. Grass, good, large rounds, brought $75 to $85. Prairie/Meadow grass, premium, small squares brought $8. Prairie/meadow grass, good/premium, large rounds brought $90. In the East, alfalfa, pellets 17% dehydrated, brought $290 to $350. Pellets 17%, suncured, brought $250 to $280. Alfalfa, good, large round, brought $90. Large squares brought $120. Medium squares brought $140. Grass, good, large round, brought $90. In the Platte Valley region, alfalfa, ground, brought $130. Pellets 17% dehydrated, brought $300. Pellets 17% sun-cured brought $300. Alfalfa, premium, large rounds, brought $100 to $105. Alfalfa, good, large round, brought $85 to $95. In the West, alfalfa, ground, brought $140. Alfalfa, supreme, medium squares brought $200.
Boxed beef closed sharply higher on solid demand for moderate offerings. Choice was $2.06 higher at $332.84 and Select closed $5.79 higher at $314.14. The Choice/Select spread is $18.70. Estimated cattle slaughter was 105,000 head – down 16,000 on the week and up less than 1,000 on the year.
Lean hog futures ended the day higher with pork values stronger during the session. February lean hogs closed $.77 higher at $82.55 and April lean hogs closed $1.32 higher at $88.67.
Cash hogs closed higher with a solid negotiated run. Processors got a little more aggressive Friday afternoon and bid up to move needed numbers. Export sales for last week were solid as demand for U.S. pork on the global market remains strong. There are concerns about the inconsistency in domestic demand. The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $.15 higher with a base range of $70 to $81 and a weighted average of $79; the Iowa/Minnesota closed $2.40 higher with a weighted average of $80.50; the Western Corn Belt closed $2.39 higher with a weighted average of $80.30; no comparison at the Eastern Corn Belt but a weighted average of $77.18.
According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were steady and feeder pigs were $3 per head higher. Demand was steady for moderate offerings. The weighted average for early-weaned pigs was $80.50 and the weighted average for all feeder pigs was $98.98.
Butcher hog prices at the Midwest cash markets were steady at $55.
Pork values closed higher – up $.88 at $91.36. Bellies and hams were sharply higher. Butts were firm. Picnics, ribs, and loins were lower. Estimated hog slaughter was 483,000 head – up 6,000 on the week and up more than 161,000 on the year.
