Cattle futures pressured by higher move in corn
At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower and sharply lower pressured by the higher move in corn. October live cattle closed $.60 lower at $143.05 and December lives closed $.80 lower at $149.10. September feeders closed $2.05 lower at $182.20 and October feeders closed $2.12 lower at $183.40.
It was a really quiet Friday for direct cash cattle business. There was just a little clean-up trade reported at $230. For the week live deals were at mostly $142, generally steady with the previous week’s weighted averages. Northern dressed deals were marked at mostly $232 to $233, about $1 to $2 below the prior week’s weighted average basis in Nebraska.
Mobridge Livestock Exchange in South Dakota had its first reported sale since the spring this past week. The USDA says demand was very good for a couple of strings and many loads and packages. The majority of the cattle were off grass in light to moderate flesh. There were also quite a few tested open heifers offered. Quality varied, from plain to attractive. The market was active with many buyers attending the sale. Feeder supply included 65% steers and 100% of the offering was over 600 pounds. Medium and Large 1 feeder steers 850 to 880 pounds brought $184.50 to $194 and feeder steers 955 to 990 pounds brought $177 to $184.75. Medium and Large 1 feeder heifers 900 to 945 pounds brought $169.50 to $172.25 and feeder heifers 955 to 980 pounds brought $172 to $185.25.
In Missouri this past week, drought conditions have improved according to the latest drought monitor, but there are some persistent dry areas. The USDA says many pastures and hay fields are showing some signs of life and there is some optimism that fall hay is possible in some areas. That would benefit the overall lower supplies and help as many have already been feeding hay. Supplies are light to moderate and hay movement is moderate. Demand is moderate to good, and prices are steady to firm. Alfalfa, supreme, medium squares brought $250 to $300. Alfalfa, supreme, small squares brought $10 to $15. Alfalfa, premium, medium squares brought $180 to $250. Alfalfa, good, large rounds brought $150 to $180. Alfalfa, good, small squares brought $5 to $9. Alfalfa/grass mix, good/premium small squares brought $5 to $9. Mixed grass, good/premium large rounds brought $125 to $175. Mixed grass, fair/good large rounds brought $100 to $150.
Boxed beef closed mixed on light to moderate demand for fairly light offerings. Choice closed $.78 lower at $262.76 and Select closed $1.22 higher at $238.76. The Choice/Select spread is $24.00. Estimated cattle slaughter is 123,000 head – up 1,000 on the week and up 7,000 on the year. Saturday’s estimated kill is 56,000 head – up 16,000 on the week and down 17,000 on the year.
Lean hog futures were mixed adjusting spreads. October lean hogs closed $.45 lower at $90.65 and December lean hogs closed $32 higher at $82.95.
Cash hog closed sharply lower with a fairly light negotiated run. Processors likely had their desired numbers procured and there wasn’t the need to bid up. Demand for US pork on the global market has been relatively strong, helping provide price support. But there is long-term concern and that is putting pressure on prices. The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $7.37 lower with a base range of $100 to $127 with a weighted average of $110.25; the Iowa/Minnesota closed $1.74 lower with a weighted average of $118.29; the Western Corn Belt closed $1.18 lower with a weighted average of $116.18. Prices at the Eastern Corn Belt were not reported due to confidentiality.
According to the USDA’s Weekly Feeder Pig Report, early-weaned pigs were $3 per head lower and all feeder pigs were $4 per head lower. Both markets were under pressure late in the week and demand fell off for the moderate to heavy offerings available. The Total Composite cash range for early-weaned pigs was $30 to $46 with a weighted average of $38.80. The Total Composite formula range for early-weaned pigs is $38.84 to $50.88 with a weighted average of $43.80. The weighted average for all early-weaned pigs was $41.14 and the weighted average for all feeder pigs was $63.70.
Butcher hog prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were $1 lower with light to moderate demand for moderate offerings at $66 to $78. Barrow and gilt prices were steady with moderate demand for moderate offerings at $77 to $86. Boars ranged from $45 to $55 and $10 to $20.
Pork values closed lower – down $.43 at $102.23. Ribs, picnics, and hams were about steady to sharply lower. Loins and butts were higher. Bellies were sharply higher. Estimated hog slaughter is 451,000 head – down 16,000 on the week and down 12,000 on the year. Saturday’s estimated kill is 28,000 head – down 30,000 on the week and down 82,000 on the year.